Labrador GOLD Announces Start of Exploration at Kingsway
NEWS RELEASE
August 6, 2020
LABRADOR GOLD ANNOUNCES START OF EXPLORATION AT KINGSWAY
TORONTO, ON, August 6 , 20 20 – Labrador Gold Corp . (TSX-V: LAB, OTCQB: NKOSF) (“ LabGold” or the
“Company”) is pleased to announce that its field crew has arrived in Gander and started the 2020 exploration
program on the Kingsway Property.
LabGold’s work program will initially focus on following up known gold anomalies identified from previous work
on the three licenses. Soil sampling has begun on a high priority target that covers a 3km long anomaly of gold in
heavy mineral concentrates with values from <5ppb to 89pp m (89g/t Au) that runs along the interpreted trace
of the Appleton fault zone. Geological mapping and prospecting of anomalous areas and known showings is also
underway.
Up to 10,000 soil samples and 250 km of ground magnetics/VLF-EM are planned for the property and are
expected to take about six weeks to complete. We intend to hit the priority areas with known gol d anomalies
first so that the results of these surveys, together with the results of the geological mapping and prospecting can
be used to plan a first phase fall drilling program.
Concurrently with the field work, we are working on a structural compilation of the district. This compilation will
allow us to more efficiently target areas for detailed mapping and prospecting based on a better understanding
of the role of primary and secondary structures on the localization of gold mineralization.
“It feels good to get boots on the ground at Kingsway which we believe to be the most strategically located
property in the Gander gold district relative to New Found Gold’s recent discovery,” said Roger Moss, President
and CEO. “Our focus on soil geochemistry and mag/VLF to define structures and potential alteration zones is
consistent with what has worked well in the past and we expect to generate numerous targets along the major
structures for drill testing.”
“It’s good to see the Kingsway Project moving along. Our limited 2019 deeper soil program over anomalous gold
in till and vegetation samples proved successful in outlining new gold targets that will be followed up during this
season’s work,” said Shawn Ryan, Technical Advisor to LabGold. “Based on last year’s success, the proposed
larger 10,000 sample soil program covering existing gold in till and vegetation samples should produce some
nice new gold anomalies leading to new drill targets.”
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
16km of the Appleton fault zone 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 world 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, anomalo us 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 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 larg e 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 18 th 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 o f 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 91,584,175 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 under lying 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.