LabGold to test high-grade Newfoundland targets, stock rises
Labrador Gold Corp. [LAB-TSXV; NKOSF-OTCQX; 2N6-FNR] said Friday March 19 that it has received all necessary permits for a maiden diamond drill program that aims to test high-grade gold targets at the Big Vein prospect on its 100%-owned Kingsway Project near Gander, Newfoundland.
Labrador shares advanced on the news, rising 8.0% or $0.035 to 47 cents on volume of 575,520. The shares are currently trading in a 52-week range of 63 cents and 10 cents.
The Kingsway Project is located within the highly prospective Gander gold district and along strike from New Found Gold Corp.‘s [NFG-TSXV] Queensway Project in central Newfoundland, where New Found is engaged in a 200,000-metre diamond drill program.
New Found recently said drilling on the Keats Zone at its Queensway returned of 61.8 g/t gold over 13.7 metres. Mineralization at Queensway been interpreted as epizonal-style gold mineralization similar to that found in the high-grade Swan Zone at Kirkland Lake Gold‘s [KL-TSX, NYSE; KLA-ASX] Fosterville mine in Victoria, Australia.
The Kingsway property consists of 264 claims in three license covering approximately 77 km2. Labrador can earn a 100% interest in the three licenses where it is also targeting epizonal gold deposits associated with regional scale structures in Ordovician sedimentary rocks.
On Friday, Labrador Gold said a previously announced a 10,000-metre drill program expected to consist of 43 holes and designed to test a 350-metre strike length of the Big Vein. Initial drilling will test for shallow high-grade mineralization below outcropping visible gold in quartz vein, grab sample from which assayed 1,065 g/t gold.
However, since the plunge of the high-grade mineralization is not yet known, drilling will start with short 12.5-metre incremental step-out holes to the northeast and southwest to better determine the orientation of this zone, the company said in a press release, Friday.
“We are very pleased to receive the permits for our drilling program at the high-grade gold target at Big Vein and anticipate commencement of our first hole very soon given preparations are well under way,” said President and CEO Dr. Roger Moss. “With the continued success of New Found Gold’s drilling to the Keats and Lotto zones along strike to the southwest, we are looking forward to seeing what Big Vein yields,” Moss said.