Labrador Gold Corp. [LAB-TSXV] reviewed its 2021 exploration success along the Appleton fault zone and has given an update on plans for 2022 at its 100%-optioned, road-accessible Kingsway project near Gander, Newfoundland. The Kingsway project is located in the highly prospective central Newfoundland gold belt.
In early April, 2021, LabGold began a 10,000-metre diamond drilling program at Kingsway, testing the Big Vein target where visible gold in quartz vein boulders was found in late 2020. The drilling program was increased to 50,000 metres in June following completion of two private placements.
Between the start of drilling in April and the break for the festive season in December, a total of 26,767 metres were drilled in 116 holes primarily at Big Vein. Drilling at the new Pristine target began in November and nine holes totalling 2,229 metres have been drilled to date. Assays have been received for 56% of samples submitted to the laboratory or approximately 15,000 metres of core.
Highlights from drilling include high-grade intersections of 276.56 g/t gold over 0.5 metres in hole K-21-31 and 75.86 g/t gold over one metre in hole K-21-49 from the Big Vein zone and 44.08 g/t gold over 4.28 metres in hole K-21-39, and 128.51 g/t gold over 1.12 metres in hole K-21-47 from the HTC zone.
LabGold continued its systematic exploration along the Appleton fault zone during 2021.
Prospecting following up coincident structures and geochemical anomalies led to the discovery of the Golden Glove occurrence on the east side of the Appleton fault zone approximately 3.4 km southwest of Big Vein. The occurrence consists of an outcrop of quartz vein containing visible gold that assayed from 2.99 g/t gold to 338.08 g/t gold. Soil sampling, ground magnetics and VLF-EM surveys were carried out in the Golden Glove area to assist in drill targeting with results expected early in 2022..
Two till samples taken approximately 700 metres northeast (down ice) of Big Vein returned 165 and 311 gold grains of which 96% and 83%, respectively, were pristine. Diamond drilling at this Pristine target began in November and assays from the first holes are pending.
Numerous other gold anomalies were uncovered along the Appleton fault zone that will be followed up in 2022 to define additional drilling targets.
During 2021, the company raised $24.8-million at an average price of 81 cents/ share in two private placements with Eric Sprott and New Found Gold. As at December 24, 2021, the company had $30.8-million in cash and a market cap of $124.5-million.
LabGold will continue to explore the entire 12-metre strike length of the Appleton fault zone during 2022 including continued diamond drilling at Big Vein and the Pristine target testing along strike and at depth; initial drilling at Golden Glove following receipt of survey results and drill permit; and upgrading of gold anomalies and generation of new targets.