(Image via Labrador Gold Corp.)
All that glitters near a small town on the island of Newfoundland may just be gold.
Located less than 20 kilometres from Gander in the central part of the island in the province of Newfoundland and Labrador,
Labrador Gold Corp.’s (TSX: V-LAB, Forum) Kingsway property is exciting the Company’s leadership team over signs that indicate excellent potential for a gold mineralized system.
About the property:
The Kingsway property contains two claim blocks, its most prospective areas – Kingsway North with 154 claims and Kingsway South with 110 claims. The property is also ideally situated close to Gander with road access right to the project, as well as electricity and a strong local water supply.
Just 4.5 kilometres south of the Kingsway South block, a major gold discovery (92.86g/t Au over 19 metres) was made recently by
New Found Gold Corp. on their Queensway property. Both the North and South Kingsway blocks lie along the northeastern extension of the structure associated with the discovery, covering approximately 14km of strike length. This indicates the strong prospectivity of LAB’s ground.
Both blocks also boast significant gold anomalies in till, soil and vegetation.
(Project map via Labrador Gold Corp.)
The story doesn’t end there. Trenching in and around the vicinity of the gold grains in till and high gold values found in heavy mineral concentrates uncovered a subangular boulder of quartz vein containing visible gold. A sample assayed 168 grams per tonne of gold (g/t Au). There is more work ahead for the Company, as neither the source of the boulder or the source of the gold grains has been found, yet.
The previous operator spent $1.34 million in exploration over the last four years and gathered more than 1,700 till samples, 3,700 vegetation samples, 2,300 till XRF samples and 2,900 samples taken over an area 45 kilometres by 15 kilometres. Historically, soil sampling led to the discovery of most of the known gold occurrences in the region.
Further comparing New Found Gold’s recent discovery south of the Kingsway property, gold mineralization appears to be related to structures that cross cut the Appleton fault zone. Previous work done at Kingsway suggests to the Company that gold mineralization is associated with regional structures, specifically where there are second order cross structures.
In the Company’s
May 2020 update to investors, LAB President and CEO Roger Moss noted that there is strong potential within the Kingsway project for the discovery of orogenic gold deposits associated with deep seated structures. This had been clearly demonstrated to the team through historical exploration data and more recent work done on the project.
“The presence of the Appleton and Dog Bay structures on the property with evidence of gold in till, vegetation, soil, stream sediments, lake sediments and float suggest the presence of a significant mineralized system. Detailed soil sampling combined with ground magnetic and VLF-EM are planned for the coming field season to define targets for subsequent drill testing. In the meantime, compilation and interpretation of the historical work continues to define the most prospective areas for successful follow up.”
These comments are backed up by one of the key members of the Labrador Gold team, technical advisor, Shawn Ryan.
The acclaimed prospector behind the multi-million-ounce White Gold deposit in Yukon Territory added to CEO Moss’ comments, stating that the Kingsway Project covers some of the first claims he staked outside of the Yukon.
“It was based on extensive research and ground follow up. The government till sampling and historical work was very compelling in showing that the Appleton and Dog Bay Line structures are very anomalous in gold. The previous option holder conducted extensive regional till and vegetation sampling that outlined nice anomalous gold areas. I pared down the large claim block to the two best areas. The subsequent announcement of the New Found Gold high-grade intersection south of Kingsway has given the district the evidence needed that good gold grades are associated with regional NNE (Appleton) structures cross cut by NE trending structures. These same structural patterns are seen in the geophysics on the Kingsway project. I look forward to the follow up work to be conducted over the next couple of seasons.”
Investment summary:
“The Gold Detective” is on board with this project and the opportunity to discover more gold along the same structural trend that hosts the recent New Found Gold discovery are reasons enough to get excited about Labrador Gold Corp. The experienced team behind this Company sees great potential for the discovery of gold deposits associated with deep seated structures. Work already completed on the licenses to date indicates significant gold anomalies in all sampling media and investors will want to keep track of incoming news from Labrador Gold as they advance the project toward discovery.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.