Labrador GOLD Announces Start of Csamt Survey at Kingsway Property
NEWS RELEASE
October 8, 2020
LABRADOR GOLD ANNOUNCES START OF CSAMT SURVEY AT KINGSWAY PROPERTY
TORONTO, ON, October 8, 2020 – 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 N ewfoundland 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 a long 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. 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 stretch es over 60 km. The
belt is typical of greenstone belts around the world but ha s 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: 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 result s 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 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.