- Two field programs in Labrador over 2 seasons 26,000 soil samples, 1,547 lake sediment samples and 728 rock samples over area that covered 1,701 square kilometres,
- Narrowed exploration focus to the two most prospective properties having identified regional scale gold anomalies on both
- Ashuanipi: anomalies identified a 15 kilometre long by 2 to 6 kilometre wide north-south trend and a second 14 kilometre long by 2 to 4 kilometre wide east-west trend.
- Hopedale project successfully identified gold mineralization over a three km segment of the northern Florence Lake greenstone belt known as Thurber Dog.
- Gold anomalies also occurred along the entire 40km length of the southern Florence Lake greenstone belt.
- Summer 2019 – Evaluate multiple compelling targets and undertake the first drilling for gold on either property.
March 28, 2019
It has been less than two years since I met Shawn Ryan and launched
Labrador Gold and yet we have accomplished so much in that short time.
We raised over $5 million, and in the process attracted investors such
as Mr. Rob McEwen, Chairman and Chief Owner of McEwen Mining Inc.,
Plethora Precious Metals Fund, RyanWood principals Shawn Ryan and Cathy
Wood, as well as friends and associates of management. We completed two
field programs in Labrador, taking over 26,000 soil samples, 1,547 lake
sediment samples and 728 rock samples. Following the first program we
narrowed our focus to the two most prospective properties having
identified regional scale gold anomalies on both. This year we will
evaluate multiple compelling targets and undertake the first drilling to
be carried out for gold on either property.
Both Shawn and I started in the mining industry when companies still
did grassroots, reconnaissance scale exploration as a matter of course.
We routinely used stream sediment sampling, soil sampling, till sampling
and prospecting over large properties to continuously narrow down the
search to the most prospective areas. Done correctly, it is an unbiased
means of rapidly assessing the exploration potential of a region and it
works. Shawn used soil sampling as the primary means for discovering
gold deposits in the Yukon that add up to over 7.5 million ounces. I was
part of team that used soil sampling to find the Navachab gold deposit
in Namibia, which still had resources of 3.9 million ounces in 2014
following 15 years of production. Based on these successes it made sense
to apply the same method to the Labrador properties.
Labrador Gold is the first company to take such a systematic approach
to gold exploration in Labrador. Shawn used publicly available data,
including mineral occurrences and assays of lake sediments, soil
samples, and rock samples to stake three properties that covered 1,701
square kilometres, an area just smaller than the Indian Ocean island of
Mauritius. We started narrowing the area down in 2017 with regional
scale soil and lake sediment sampling and limited prospecting. The
results were encouraging.
Two of the properties, Hopedale and Ashuanipi, showed significant
gold anomalies in both soils and lake sediments with values up to 2.1g/t
in the soil samples. At Ashuanipi the anomalies identified a 15
kilometre long by 2 to 6 kilometre wide north-south trend and a second
14 kilometre long by 2 to 4 kilometre wide east-west trend. The
anomalies are broadly associated with magnetic highs and do not show any
correlation with specific rock types suggesting a structural control on
the localization of the gold anomalies. As a result of the successful
program we added claims to the northern claim block in both Labrador and
Quebec to cover potential extensions of the anomalies.
Gold in soil anomalies at the Hopedale project successfully picked up
known gold mineralization over a three km segment of the northern
Florence Lake greenstone belt known as Thurber Dog indicating that the
technique works in Labrador. What was particularly exciting was that
gold anomalies also occurred along the entire 40km length of the
southern Florence Lake greenstone belt. This belt has many
characteristics of greenstone belts elsewhere in the world including
major crustal scale structures, greenschist facies metamorphism, the
presence of felsic porphyries and granitic intrusions and similar
volcanic rocks. In terms of size, it is intermediate between the
Kirkland Lake and Timmins gold camps of Ontario. Such greenstone belts
are prolific hosts of gold elsewhere in the world. As such, and based on
our results so far, it is quite possible that future exploration may
result in the discovery of one or more gold deposits at Florence Lake.
In terms of exploration maturity, Florence Lake is at the stage the
Timmins camp was over a hundred years ago.
Encouraged by the success of our 2017 field work, we planned a follow
up program of detailed soil sampling on grids with lines spaced at 100
metres and sample intervals of 25 metres along the lines. This would
allow better resolution of potential gold mineralization highlighted by
the samples. At Ashuanipi, we took 7,475 soil samples on 18 grids across
the Ashuanipi north claim block and along 61 reconnaissance soil lines
over the claims staked in 2018. Results of analyses showed significant
gold anomalies in all but two of the 18 grids and confirmed the 15km
north-south anomalous trend with values up to 8,970 ppb Au (8.97g/t) and
67 samples containing more than 100 ppb (0.1g/t) Au. These results
suggest a robust mineralized system that is regional in extent with
elevated values indicating potential sites of near surface gold
mineralization.
At Hopedale, we took more than 10,000 soil samples on 12 grids along
the length of the Florence Lake greenstone belt covering anomalous
gold-in-soil targets with favorable geology and structure. Results
showed 34 samples with values greater than 100 ppb (0.1g/t) Au, with
five of these samples grading greater than 1,000 ppb (1g/t) Au. Elevated
gold values were found in samples from all 12 grids. The highest
concentrations of samples with anomalous gold are found in the Thurber
Dog, Jasmine and Misery grids. The anomalies extend along strike for 5km
at Thurber Dog and 1.8km at Misery. Rock samples collected during
mapping and prospecting showed 80 samples with values greater than 0.1
g/t gold including 17 samples that assayed greater than 1 g/t gold with a
high of 11.4 g/t gold in a select grab sample from a quartz vein with
pyrite and arsenopyrite mineralization.
Our first two field seasons using systematic sampling to narrow down
areas of potential gold mineralization have been a success. Three areas
were identified for further follow up on each of the Hopedale and
Ashuanipi properties. Compilation and interpretation of all data
including new aeromagnetic data, will refine these areas to ensure
efficient, targeted assessment of their potential in the field. Initial
follow up will include detailed mapping and rock sampling of each area.
Once we receive the assays we expect to begin a drilling program on the
most prospective targets in late summer.
The significant decline in discovery rates worldwide over the past
decade calls for a more disciplined approach to exploration with longer
term thinking. We have embraced this idea with our work in Labrador over
the past two years and with the support of our shareholders have made
big strides towards discovery. Based on our results to date I have a
feeling that the 2019 field season will be an exciting one. I hope you
will join us for the ride.
Maps and images from the Hopedale and Ashuanipi properties can be found at: https://www.labradorgold.com/projects/
Follow us on Twitter: @LabGoldCorp
Roger Moss
President and CEO
Labrador Gold Corp.
416-704-8291
