(Image via K9 Gold Corp.)
The central Newfoundland Appalachian region of Canada’s eastern Maritimes offer 
structurally-controlled gold systems that some experts are comparing to the prosperous Abitibi greenstone belt that spans across the Ontario–Quebec border.
It is within the Cape Ray/ Valentine Lake structural trend in Central Newfoundland where mineral exploration Company
K9 Gold Corp. (TSX-V: KNC, OTC: WDFCF, FSE: 5GP, Forum) Is developing the Stony Lake Project along the prolific Dog Bay Line. The project covers 27 km. (13,025 ha.) of favourable trend between the Moosehead discovery under
Sokoman Minerals (TSX-V: SIC) to the northeast and the Valentine Lake deposit to the southwest under
Marathon Gold Corp. (TSX: MOZ).
The emerging Paleozoic gold district across the central Newfoundland Appalachians offer similarities to the Abitibi greenstone belt, as both extend across areas of a similar size and are characterized by crustal-scale faults associated with remnants of synoro-genic clastic basins. The Abitibi belt is well known for its robust gold resource, could the Newfoundland belt offer similar characteristics relating to lithology, stratigraphy, structure, magmatism and tectonic setting? This is what the K9 Gold team is out to learn, to identify recurring orogenic processes and key ingredients that are fundamental to the development of structurally controlled gold systems.
This area of Central Newfoundland has seen district-wide drilling success and high-grade intercepts, which is good news that K9 Gold wants to get its share of.
The Stony Lake Project:
(Image via K9 Gold Corp. Click to enlarge.)
KNC began the fall field program in mid-September 2020 on its Stony Lake East gold project.
This large land package runs parallel in structure to the Queensway Project under
New Found Gold (TSX-V: NFG). Situated in the Grand Falls - Bishops Falls area of Newfoundland, where it recently signed an option agreement on the property with
District Copper Corp. K9’s Chief Executive Officer, Jeff Poloni stated in a
news release about this project and program for investors that this area of Central Newfoundland has seen district-wide drilling success, particularly New Found Gold's recent high-grade intercepts, which continues to highlight the area’s latent potential.
“We’re looking forward to complete this phase of exploration and commence preparations for the project's first systematic drill program.”
Taking a deeper look at the geology of this high-grade gold environment, the project is found on the interpreted Cape Ray – Valentine Lake structural trend. It is covered by Oxidized Silurian Sedimentary rocks with significant post-sediment felsic intrusives in the basement rocks below the Botwood sediments.
The deposit models offer a snapshot of widespread low grade (0.5 to 4.0 g/t Au) mineralized pyritic sandstone, quartz veins and quartz stockwork as seen exposed in the Silurian-age Botwood Group sediments.
The Dog Bay Line at a Glance:
(Image via K9 Gold Corp. Click to enlarge.)
The prolific Dog Bay Line separates different Silurian rock groups in northeast Newfoundland.
To the west, lies the Botwood Group, terrestrial volcanic rocks and sandstones that overly the Badger Group, marine greywackes and conglomerates. To the east of the line lies the Indian Islands Group, red sandstones overlie shallow marine shales and limestones. Pervasive dextral strike-slip faulting within the backstop of the transpressive ductile deformation is followed by more brittle extensions consecutively, with renewed dextral movements that mark the northwest side of the line on the coast.
The Dog Bay Line trends to the northeast, running parallel to outcrop belts, and both the line and outcrop belts are curved eastward at the coast. It also lives within the Dunnage Zone, whose Cambrian–Ordovician rocks represent vestiges of the Iapetus Ocean. To the northwest, Silurian rocks were deposited on Ordovician rocks. Finally looking to the southeast, the Silurian rocks were deposited on Ordovician rocks already amalgamated with the continental Gander Zone.
A disrupted zone of dark grey to black shales, volcanic rocks, and gabbros marks the line throughout Dog Bay. The line is open-ended and traceable for 100 km. And the dextral offset is understood to be many tens of kilometres deep.
Timing of major movement and a Silurian marine to terrestrial depositional change recorded on both sides of the line agree with isotopic ages for the onset of plutonism, regional deformation, and metamorphism in central Newfoundland.
2020 exploration:
(Image via K9 Gold Corp. Click to enlarge.)
Last year, the Company defined a high priority exploration target in the basement below the Botwood Group through its airborne survey and interpretation that followed, which clearly showed that the structural trend of Sokoman’s Moosehead discovery crosses onto the Stony Lake East property. This appears to be a primary basement structure, with a splay tree that branches out to a great distance.
The interpretations also indicated that these zones of concentrated gold mineralization that were discovered in the Botwood sediments at the time run along a structural trend to the north-northeast in the Botwood. Although this is a different, parallel, trend, the model remains similar, essentially a major structure with gold-bearing fluids that emanate from a basement structure depositing low grade mineralization in the Botwood.
The 2020 Exploration Plan is already underway and will consist of airborne EM, structural and geological mapping and sampling to define the preliminary drill program. Using a Versatile Time-Domain Electromagnetic (VTEM Plus) geophysical system, this survey will cover the entire property at a 200-metre line spacing.
Groundwork at the project will focus on eight areas that are highly anomalous where high-grade gold (15.05 g/t) mineralization was identified. These areas are hosted in quartz feldspar porphyry, pyrite and arsenopyrite-bearing reduced sandstone, quartz stockworks and quartz veins. The Company recorded the following results from 2019 and earlier:
- Eight areas have been identified that are highly anomalous to high grade gold (15.05 g/t) mineralization
- Historical till sampling up to 95,700 ppb Au
- This gold mineralization is found within quartz feldspar porphyry, pyrite, and arsenopyrite
bearing reduced sandstone, quartz stockwork, and quartz veins
- The mineralization also exhibits arsenic-antimony-molybdenum geochemical associations with a high gold to silver ratio
- It is also characterized by sericite, silica, ankerite, carbonate, and chlorite alteration typically as pervasive alteration and envelopes around quartz stockwork and quartz veins
- All gold mineralization samples that contain more than 50 parts per billion commonly contained pyrite and arsenopyrite (1-3% total sulphide)
It has been suggested from the interpretation of the results from the 2019 field program that two separate styles of gold mineralization may occur on the property:
One is a widespread, low grade (0.5 to 4.0 g/t Au) mineralized quartz-felspar-porphyry, pyritic sandstone, quartz veins and quartz stockwork as seen exposed in the Silurian-age Botwood Group sediments.
Selected Drilling Results:
- Sokoman; MH-18-01 returned 11.9 m of 44.96 g/t Au (news release July 24, 2017), MH-20-86 returned 4.70 m of 18.60 g/t Au (news release July 15, 2020) MH-18-08 returned 1.05 m of 207.1 g/t Au from 8.50 m to 9.55 m and 2.28 m of 42.36 g/t Au from 33.07 to 35.35 m (Sokoman news release Aug. 28, 2018)
- New Found Gold NFGC-19-01 returned 92.9 g/t Au over 19 m incl. 285.29 g/t Au over 6 m (corp. presentation 2020)
- Marathon Gold; VL-20-823 returned 3.33 g/t Au over 120.0 m incld. 11.83 g/t Au over 10 m (news release July 2020) REGIONAL DISCOVERIES9
Meet the team:
On
September 1st, 2020, the Company announced the appointment of Jeff Poloni as its Chief Executive Officer and Director. He has 30 years of experience in mineral exploration and corporate management on projects in South, Central and North America. He has held director and senior officer positions in several TSX Venture listed companies, providing exploration management, SOP's and corporate governance. He is currently President of both
JCMP Management Corp. and
Auranita Resources Corp.
He joins the Company’s top leadership team, comprised of:
Brian Morrison, Chief Financial Officer, Director
- Bachelor of Commerce - University of Northern British Columbia (2004)
- Canadian securities course (2006)
- Account Manager - Computershare Investor Services Inc. (2005 – 2008)
- Since 2008, he has been a self-employed consultant working in public company administration and currently serves as a director or as chief financial officer of various publicly traded issuers
Kosta Tsoutsis. Director
- CEO M3 Metals Corp. (current)
- Investment advisor - Mackie Research, Jordan Capital Markets, and Canaccord Capital Corp.
- Directly raised over $30 million (CAD) in development and venture capital for public and private companies worldwide
Alexander Helmel BSc, Director
- Chief Financial Officer & Secretary, Tasca Resources Ltd. (current)
- President, Chief Executive Officer, Director, Network Exploration Ltd. (current)
- Involved with multiple exploration companies including Rara Terra Minerals Corp. and Giyani Gold Corp.
- Bachelor of Science - University of British Columbia (1994)
Simon Clark, Director
- Director and Audit Committee Chair for a number of public and private companies
- Corporate and securities lawyer (including City of London law firm Simmons & Simmons)
- Investment banker in London, UK, West LB Panmure, Williams de Broe Plc (1994 – 2000)
- Senior management and board of director roles, RailPower Technologies, Doublestar Resources, Argus Metals (2000 – present)
Investment conclusion:
(Image via K9 Gold Corp. Click to enlarge.)
The Company is operating in an area of regional significance and has already scored positive results in Canada’s newest orogenic gold district. The Company’s surveys have indicated gold potential in this portion of Newfoundland and has classified it as an orogenic style gold setting with intersections of high-grade gold mineralization.
Promising results with robust activity nearby are two major reasons for investors to get excited about what is to come from K9 Gold Corp.
To find out more about the Company, visit
k9goldcorp.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.