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Labrador Gold $ – Higher Gold Prices Aren’t Enough, New Discoveries Are Needed – Mining CEO $ $ $ $

Posted by AGORACOM at 1:43 PM on Tuesday, September 24th, 2019

SPONSOR: Labrador Gold – Two successful gold explorers lead the way in the Labrador gold rush targeting the under-explored gold potential of the province. Exploration has already outlined district scale gold on two projects, including over a 40km strike length of the Florence Lake greenstone belt, one of two greenstone belts covered by the Hopedale Project. Click Here for More Info

Investors are starting to pay more attention to junior miners but the sector isn’t out of the woods when it comes to attracting much needed capital, according to one mining executive.

Gold’s $200 rally this year has breathed new life in the precious metals market, but the junior sector has seen only a small portion of renewed investor interest. The TSX Venture Index ($JX), which is heavily weighted with junior explorers is up less than 3% this year, a disappointing performance compared to gold’s 18% rally so far this year.

Following a busy and positive Beaver Creek Precious Metals Summit, Ioannis Tsitos, president of Goldsource Mines (TSX.V: GXS) said that the junior exploration sector needs more than just higher gold prices to attract investors; it needs new discoveries: greenfield discoveries

“In the last decade we have seen a significant decline in budgets for greenfield exploration and that has led to less discoveries and that has led to less stories in the marketplace,” he said.

Greenfield exploration refers to projects in unchartered territory where information on the region’s mineralization is unknown. Because of that lack of initial mineral information greenfield projects are seen as a higher risk compared to brownfield projects, where exploration is done around an existing mime.

Tsitos added that not only are few deposits being discovered but grades are also dropping, which leads to a general lack of excitement in the industry.

“Investor sentiment is improving for the sector but junior explorers still need to do a lot more work and show that they are finding new deposits,” he said.

Tsitos’ comments come as the company develops its Salbora project, in Guyana, South America, which isn’t exactly a greenfield project as there has been some preliminary airborne surveys of the area.  The project is also 1.5 kilometers from the company’s Eagle Mountain Gold Project. However, the company has been doing a lot of work to define the project’s mineralization.

Earlier this spring the company was able to raise nearly $7.5 million in an oversubscribed private placement deal. Tsitos added that the company has spent about $2 million on an aggressive exploration, targeting 4,000 to 5,000 meters drilled by the end of the third quarter.

“The private placement was oversubscribed in one day,” he said. “It just shows how starved investors are for a new discovery.”

Tsitos added that his company didn’t set out to be a greenfield explorer but have embraced this role as the company ran into production issues when it started producing gold at Eagle Mountain. He added that the company needed to expand its resource to make the original mine more efficient.

“For us exploring in a greenfield was a necessity. We were driven by internal forces and our organic growth objectives,” he said. “But being on this side we see the need for new discoveries in the industry.”


Labrador Gold $ Retains Indigenous Engagement and Community Relations Advisor $ $ $ $

Posted by AGORACOM at 3:14 PM on Tuesday, September 10th, 2019
  • Retained Ms. Patricia Stirbys, J.D., LL.M, to help develop a comprehensive indigenous engagement and community relations program
  • Ms. Stirbys is a member of Cowessess First Nation and specializes in engaging Indigenous groups

VANCOUVER, British Columbia, Sept. 10, 2019 (GLOBE NEWSWIRE) — Labrador Gold Corp. (TSX-V: LAB) (“Labrador Gold” or the “Company”) is pleased to announce that it has retained Ms. Patricia Stirbys, J.D., LL.M, a member of Cowessess First Nation, to help it develop a comprehensive indigenous engagement and community relations program.

Ms. Stirbys has over 20 years of experience in law, negotiations and policy, specializing in engagement with Indigenous groups. She has an excellent understanding of Indigenous peoples, issues and challenges along with an understanding of the mining sector. Ms. Stirbys has engaged with Indigenous communities in most provinces, including First Nations in B.C., Saskatchewan, Ontario, Quebec and Newfoundland-Labrador. She has successfully negotiated agreements with Indigenous groups across Northern Ontario, particularly First Nation communities within the Ring of Fire.

“We are very pleased to have Ms. Stirbys join the Labrador Gold team,” said Roger Moss, President and Chief Executive Officer of Labrador Gold. “Her significant experience in indigenous relations will be a valuable asset as we move forward with engagement and consultation with the community of Matimekush-Lac John.”

The Company is committed to maintaining respectful relations with the community and to understanding their concerns as we find a way to work in the region to the benefit of all stakeholders.

The Company also announces the grant of 100,000 options to purchase common shares of the Company to Ms. Stirbys. The options vest 50% on grant and 50% after six months and are exercisable for a price of $0.25 for a period of five years.

Roger Moss, PhD., P.Geo., is the qualified person responsible for all technical information in this release.

About Labrador Gold:

Labrador Gold is a Canadian based mineral exploration company focused on the acquisition and exploration of prospective gold projects in the Americas. In 2017 Labrador Gold signed a Letter of Intent under which the Company has the option to acquire 100% of the 896 square kilometre (km2) Ashuanipi property in northwest Labrador and the Hopedale (458 km2) property in eastern Labrador.

The Hopedale property covers much of the Hunt River and Florence Lake greenstone belts that stretch over 80 km. The belts are typical of greenstone belts around the world, but have been underexplored by comparison. Initial work by Labrador Gold during 2017 shows gold anomalies in soils and lake sediments over a 3-kilometre section of the northern portion of the Florence Lake greenstone belt in the vicinity of the known Thurber Dog gold showing where grab samples assayed up to 7.8g/t gold. In addition, anomalous gold in soil and lake sediment samples occur over approximately 40 kilometres along the southern section of the greenstone belt (see news release dated January 25th 2018 for more details). Labrador Gold now controls approximately 57km strike length of the Florence Lake Greenstone Belt.

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 2017 reconnaissance exploration program following up the lake sediment anomalies 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 anomalies appear to be broadly associated with magnetic highs and do not show any correlation with specific rock types on a regional scale (see news release dated January 18th 2018). This suggests a possible structural control on the localization of the gold anomalies. Historical work 30 km north on the Quebec side led to gold intersections of up to 2.23 grams per tonne (g/t) Au over 19.55 metres (not true width) (Source: IOS Services Geoscientifiques, 2012, Exploration and geological reconnaissance work in the Goodwood River Area, Sheffor Project, Summer Field Season 2011). Gold in both areas appears to be associated with similar rock types.

The Company has 57,039,022 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.