Labrador Gold Corp. [LAB-TSXV, NKOSF-OTCQX, 2N6-FNR] said Monday it has exercised its options two years early to earn 100% of the three licenses that cover the Kingsway project near Gander, Nfld. The project is situated on the highly prospective Newfoundland gold belt.
LabGold shares advanced on the news, rising 4.0% or $0.02 to 52 cents. The shares are currently trading in a 52-week range of $1.85 and 47 cents.
KIngsway is composed of three licenses that where optioned in March 2020, and July, 2020. Together they cover 12 kilometres of the Appleton Fault Zone, along which prospecting and drilling over the past two years by LabGold and New Found Gold Corp. [NFG-TSXV], has resulted in the discovery of numerous near-surface high grade gold occurrences
The Kingsway project is located along strike from New Found Gold’s Queensway Project, where New Found is engaged in a 400,000-metre diamond drill program utilizing 11 drills with plans to ramp up to 14 drills. Drilling is focused on a 9.5-kilometre corridor along the Appleton Fault, and a 12.4-kilometre corridor along the JBP Fault.
New Found has made several high-grade gold discoveries along the Appleton Fault Zone, including Keats, Golden Joint, Lotto and the recently announced 515 Zone.
Labrador is targeting epizonal gold deposits associated with regional scale structures in Ordovician sedimentary rocks.
“Given, the prolific nature of this fault zone and the continued success of the company’s exploration on the property, the board agreed to accelerate the option payments to acquire the 100% interest,’’ the company said in a press release.
“It is clear to us that the Kingsway Property will need sustained exploration over the long term to fully understand its potential,’’ said LabGold President and CEO Roger Moss. “The success we had had in just a year and a half spent working in the field speaks to the prospectivity of the Appleton Fault Zone the remainder of the property,’’ he said.
“Acquiring the 100% interest in the property two years earlier than required shows the confidence we have that there is more to come from Kingsway, and we are excited to continue exploring the entire 12- kilometre strike length of the Appleton Fault Zone.’’
LabGold is drilling a projected 100,000 metres targeting high-grade epizonal gold mineralization along the Appleton Fault Zone following encouraging results, including the discovery of near surface gold mineralization at three of the targets drilled to date.
The company has approximately $25 million in working capital and is well funded to carry out the planned program.
Near surface high-grade gold intersections include 276 g/t gold over 0.5 metres, 44.08 g/t gold over 4.28 metres and 128.51 g/y over 1.12 metres