Labrador GOLD Announces Initial Results of Soil Sampling at Kingsway Property
NEWS RELEASE
October 5, 2020
LABRADOR GOLD ANNOUNCES INITIAL RESULTS OF SOIL SAMPLING AT KINGSWAY PROPERTY
Highlights
- Gold concentration up to 2,203ppb (2.2g/t Au) with 50 samples greater than 100ppb (0.1g/t Au)
- Four areas of significant gold in soil anomalies with values up to 898ppb Au adjacent to Appleton Fault
Zone
- Anomalies cover a total strike length of 2.1km and are coincident with a shear zone outlined over 2.5km
TORONTO, ON, October 5, 2020 – Labrador Gold Corp. (TSX.V:LAB | OTCQX:NKOSF | FNR: 2N6) (“LabGold” or
the “Company”) is pleased to announce initial results of the soil sampling survey 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 New Found Gold Corp’s gold discovery announced earlier this year. Soil sampling
has now been completed with 7,740 soil samples collected over 16 grids. Results for 3,125 samples covering
three grids on the Kingsway South license are reported here.
Gold values in the soils range from below detection (<0.5ppb) to 2,203ppb with 50 samples assaying greater
than 100ppb. The gold in soil anomalies tend to be associated with interpreted structures, including the
Appleton Fault zone, Dog Bay line and splays or cross faults to these major crustal structures.
Four northeast - southwest trending anomalies with gold values up to 898ppb and 11 samples with more than
100ppb occur adjacent to the Appleton fault zone over a combined distance of 2.1km. These anomalies are
coincident with a shear zone in slate that appears to extend over approximately 2.5km based on field
observations to date. The slate is carbonate altered in places and contains abundant quartz veining with local
sericite alteration. Extensive sampling is currently underway along the shear zone.
Several other significant gold in soil anomalies occur on the three grids including a 532m northeast trending
anomaly adjacent to the Dog Bay line with gold values from 24ppb up to 339ppb. The highest gold value of 2,203
ppb occurs within a 390m east-west trending anomaly that also includes samples with 142, 241 and 311ppb Au.
This anomaly is close to the Cracker gold showing where historical grab samples resulted in assays from 1.8g/t to
61.73g/t Au (see news release dated July 6, 2020 for details).
“The initial results of the soil sampling survey have confirmed and expanded on the results of historical work.
We are pleased to see the gold in soil anomalies trending along the Appleton Fault Zone and associated
structures that are key to the localization of gold in the district,” said Roger Moss, President and CEO of the
Company. “Follow up of the soil anomalies has already resulted in the discovery of a shear zone with significant
quartz veining adjacent to the Appleton Fault Zone. We are just getting started at Kingsway and anticipate a lot
more significant results to come.“
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 2.5 kilometres along strike to the northeast of their recent discovery of 41.2 g/t gold
over 4.75 metres at the Lotto Zone (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. Our recent soil sampling, as well as prior 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.
Samples were shipped to Eastern Analytical Laboratory in Springdale, Newfoundland, for sample preparation,
with analyses completed at the Vancouver laboratory of Bureau Veritas. Samples were analyzed for gold and
another 36 elements by ICP-MS (inductively coupled plasma-mass spectrometry) following an aqua regia
digestion. The company submitted blanks, field duplicates and certified reference standards with batches of
samples to monitor the quality of the analyses.
Roger Moss, PhD., P.Geo., is the qualified person responsible for all technical information 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 km 2. The three licenses comprising the Kingsway project cover approximately
22km of the Appleton and Dog Bay Line faults which is associated with gold occurrences in the region, including
the New Found Gold discovery. Historical work over the area covered by the Kingsway licenses shows evidence
of gold in till, vegetation, soil, stream sediments, lake sediments and float. 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 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 wo rld but have been underexplored by comparison.
Initial work by Labrador Gold during 2017 show 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 25 th 2018 for more details). Labrador Gold now controls approximately 57km
strike length of the Florence Lake Greenstone Belt.
The Ashuanipi gold project is lo cated 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 no rth-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 Ja nuary 18th 2018). This suggests a possible structural control on the localization
of the gold anomalies.
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: 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 subject 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 economic 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 obli gation to update these forward -looking
statements, except as required by law. Shareholders are cautioned not to put undue reliance on such
forward-looking statements.