LABRADOR GOLD ANNOUNCES DOUBLING OF DRILL PROGRAM TO 100,000 METRES AND INCREASE TO FIVE DRILL RIGS Targets entire strike length of Appleton Fault Zone
NEWS RELEASE
Jan
uary 19, 2022
LABRADOR GOLD ANNOUNCES DOUBLING OF DRILL PROGRAM TO 100,000 METRES AND INCREASE TO FIVE DRILL RIGS
Targets entire strike length of Appleton Fault Zone
TORONTO, ON, January 19, 2022 – Labrador Gold Corp. ( TSX.V:LAB | OTC QX:NKOSF | FNR: 2N6 ) (“LabGold” or
the “Company”) is pleased to announce a significant increase to its diamond drilling program, at the 100%
controlled Kingsway project near Gander, Newfoundland. This increase follows the Company’s success exploring
along the Appleton Fault Zone over the past 18 months. The Kingsway project is located in the highly
prospective central Newfoundland gold belt.
LabGold plans to double the current drilling program to 100,000 metres which includes the outstanding 23,000
metres remaining in the current 50,000 metre program. Four diamond drill rigs are currently operating at
Kingsway and a fifth rig is scheduled to start following receipt of permits . Applications for 111 drill holes were
submitted late last year and are expected in early March. The increased program is fully funded by the
Company’s cash on hand of approximately $30 million.
Drilling will continue to test Big Vein along strike and down plunge as well as the Pristine target where early
drilling is encouraging. Golden Glove , where grab samples from a quartz vein containing visible gold assayed
from 2.16 to 338.08 g/t Au (see news release dated October 21, 2021), is a prime target and will be drilled
following receipt of soil samples over the area. These are expected in the first quarter. Numerous other targets
developing along the Appleton Fault Zone (see Figure 1) will be systematically tested along the entire 12km
strike length during the increased program.
“We continue to be excited by the prospectivity of the Appleton Fault Zone at Kingsway and that was a key
factor in deciding to increase the size of the drilling program. Not only do we expect to develop the targets we
already have to the drilling stage, but we are also confident that we will uncover more as we continue to follow
our exploration strategy proven over 18 months of work at Kingsway. With over $30 million in cash and no debt
the Company is well capitalized for this planned increase.” said Roger Moss, President and CEO of Labrador
Gold. “In addition to the outstanding assays from our drilling, we are still waiting for many soil and rock assays
from the regional work carried out along the Appleton fault during 2021. We expect that some of these assays
will enhance our current targets and perhaps hint at new ones that we can develop going forward.”
Figure 1. Gold anomalies, occurrences, and drill targets along the Appleton Fault Zone.
QA/QC
Samples are securely stored prior to shipping to Eastern Analytical Laboratory in Springdale, Newfoundland for
assay. Eastern Analytical is an ISO/IEC17025 accredited laboratory. Samples are routine ly analyzed for gold by
standard 30g fire assay with ICP (inductively coupled plasma) finish with samples containing visible gold assayed
by metallic screen/fire assay. The company submits blanks and certified reference standards at a rate of
approximately 5% of the total samples in each batch.
Qualified Person
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 2020, Labrador Gold acquired the option to earn a 100% interest in the Kingsway project in the Gander
area of Newfoundland. The three licenses comprising the Kingsway project cover approximately 12 km of the
Appleton Fault Zone which is associated with gold occurrences in the region, including those of New Found Gold
immediately to the south of Kingsway . Infrastructure in the area is excellent located just 18km from the town of
Gander with road access to the project, nearby elec tricity and abundant local water. LabGold is drilling a
projected 100,000 metres targeting high- grade epizonal gold mineralization along the Appleton Fault Zone
following encouraging early results . The Company has approximately $3 0 million in working capit al and is well
funded to carry out the planned program.
The Hopedale property covers much of the Florence Lake greenstone belts that stretches over 60 km. The belt is
typical of greenstone belts around the world but ha s been underexplored by comparison. W ork to date by
Labrador Gold show gold anomalies in rocks, 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 k m along the southern section of the greenstone belt (see news release dated January 25 th
2018 for more details). Labrador Gold now controls approxim ately 40km strike length of the Florence Lake
Greenstone Belt.
The Company has 153,904,110 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: www.labradorgold.com
@LabGoldCorp
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: This news release contains forward -looking statements that involve
risks and uncertainties, which may cause actual results to differ materially from the statements made.
When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”,
“believe”, “estimate”, “expect” and similar expressions are intended to identify forward -looking
statements. Such statements reflect our current views with respect to future events and are su bject to
risks and uncertainties. Many factors could cause our actual results to differ materially from the
statements made, including those factors discussed in filings made by us with the Canadian securities
regulatory authorities. Should one or more of these risks and uncertainties, such as actual results of
current exploration programs, the general risks associated with the mining industry, the price of gold and
other metals, currency and interest rate fluctuations, increased competition and general eco nomic and
market factors, occur or should assumptions underlying the forward looking statements prove incorrect,
actual results may vary materially from those described herein as intended, planned, anticipated, or
expected. We do not intend and do not assume any obligation to update these forward-looking
statements, except as required by law. Shareholders are cautioned not to put undue reliance on such
forward-looking statements.