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Labrador Gold $ Announces Start of CSAMT Survey at Kingsway Property $ $ $ $ $ $ $

Posted by AGORACOM at 8:36 AM on Thursday, October 8th, 2020
  • The Kingsway project is located within the highly prospective Gander Gold Belt
  • Along strike to the northeast of Newfound Gold Corp’s gold discovery
  • CSAMT survey consists of 20 line kilometres tarfeting an area of gold anomalies.

TORONTO, Oct. 08, 2020 (GLOBE NEWSWIRE)  Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold” or the “Company”) is pleased to announce that a CSAMT geophysical survey is currently underway at its 77km2 Kingsway Project near Gander Newfoundland. The Kingsway project is located within the highly prospective Gander Gold Belt along strike to the northeast of Newfound Gold Corp’s gold discovery announced earlier this year.

Controlled Source Audio Magnetotellurics (CSAMT) is an electrical geophysical technique that measures resistivity in the subsurface down to depths in excess of 500 metres. The resistivity profiles can be used to target silicification associated with gold mineralization as well as deep structures such as the Appleton Fault Zone.

The CSAMT survey is being undertaken by Clearview Geophysics and consists of 20 line kilometres covering an area of complex structure and significant gold anomalies. The structure is dominated by the Appleton Fault Zone and associated splays and cross faults outlined by a recently completed structural assessment of the district. Geochemical anomalies from previous work covering the survey area include gold values from below detection (0.5ppb) to 800ppb (0.8g/t) in soil, 111ppb to 1,073 ppb (1.1g/t) in till and 7 to 60 gold grains recovered from the till samples.

“We are excited to get the CSAMT survey underway as it will aid us in effectively targeting potential gold mineralization at depth along the Appleton Fault Zone and associated structures,” said Roger Moss, President and CEO of the Company. “It will complement the property wide soil sampling and VLF-EM surveys that are expected to produce anomalies for further follow up by the upcoming initial drilling program.“

The Kingsway gold project covers 77 square kilometres of highly prospective ground in the Gander gold district of Newfoundland in Eastern Canada. The project is located immediately adjacent to New Found Gold’s Queensway project and just 4.5 kilometres along strike to the northeast of their recent discovery of 92.86 g/t gold over 19 metres. (Note that mineralization hosted on adjacent or nearby properties is not necessarily indicative of mineralization hosted on the Company’s property). Most importantly, a recent structural interpretation of the district indicates the project covers approximately 22 kilometres of strike length of crustal scale faults, including the Dog Bay Line and Appleton Fault zone. The Appleton Fault Zone is known to be closely associated with many of the gold occurrences on New Found Gold’s Queensway project. As such, LabGold is the only other company in the district with ground covering this major crustal structure with a demonstrated association with gold mineralization. Prior gold exploration in the area covered by the Kingsway project has shown significant gold anomalies along the Appleton fault zone suggesting it remains a fertile structure for associated gold.

LabGold also announces the granting of 450,000 options to an officer and a consultant of the Company. The options are exercisable at a price of $0.45 for five years.

Roger Moss, PhD., P.Geo., President and CEO of LabGold, a Qualified Person in accordance with Canadian regulatory requirements as set out in NI 43-101, has read and approved the scientific and technical information that forms the basis for the disclosure contained in this release.

The Company gratefully acknowledges the Newfoundland and Labrador Ministry of Natural Resources’ Junior Exploration Assistance (JEA) Program for its financial support for exploration of the Kingsway property.

About Labrador Gold
Labrador Gold is a Canadian based mineral exploration company focused on the acquisition and exploration of prospective gold projects in Eastern Canada.

In early March 2020, Labrador Gold acquired the option to earn a 100% interest in the Kingsway project in the Gander area of Newfoundland. The property is along strike to the northeast of New Found Gold’s discovery of 92.86 g/t Au over 19.0 metres on their Queensway property. (Note that mineralization hosted on adjacent or nearby properties is not necessarily indicative of mineralization hosted on the Company’s property). In early July 2020, the Company signed an option agreement to acquire a third license to add to the property package which now covers approximately 77 km2. Infrastructure in the area is excellent located just 18km from the town of Gander with road access to the project, nearby electricity and abundant local water.

The Hopedale gold property covers much of the Florence Lake greenstone belt that stretches over 60 km. The belt is typical of greenstone belts around the world but has been underexplored by comparison. Initial work by Labrador Gold has identified a 3 kilometre mineralized section of the northern portion of the belt in the vicinity of the known Thurber Dog gold showing where grab samples assayed up to 7.8g/t gold.

The Ashuanipi gold project is located just 35 km from the historical iron ore mining community of Schefferville, which is linked by rail to the port of Sept Iles, Quebec in the south. The claim blocks cover large lake sediment gold anomalies that, with the exception of local prospecting, have not seen a systematic modern day exploration program. Results of the exploration to date show gold anomalies in soils and lake sediments over a 15 kilometre long by 2 to 6 kilometre wide north-south trend and over a 14 kilometre long by 2 to 4 kilometre wide east-west trend.

The Company has 93,294,175 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.

For more information please contact:             

Roger Moss, President and CEO      Tel: 416-704-8291

Or visit our website at:

Twitter @LabGoldCorp

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