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Be the first with the news that moves the market- Mineral exploration company Labrador Gold (LAB) has launched a drill program at its Kingsway Project in Newfoundland
- Drilling will initially begin at the Cracker showing where five drill holes have been planned and previous grab samples returned up to 61.73 grams per tonne of gold
- The focus will then shift to the southeast, targeting two structures that trend to the northeast and north-northeast
- Two areas to the northeast of the Cracker showing will then be drilled which are associated with a strong northeast trending structure
- Labrador Gold (LAB) is currently down 10.71 per cent and is trading at C$0.38 per share
Mineral exploration company Labrador Gold (LAB) has launched a drill program at its Kingsway Project in Newfoundland.
Located roughly 18 kilometres northwest of the town of Gander, the property covers 77 square kilometres and consists of 264 claims over two separate licenses within the highly prospective Gander Gold Belt.
Initial work will focus on the Cracker occurrence, where five drill holes have been planned. These holes will target a number of conductors associated with an altered mineralised gabbro and anomalous gold in soil samples.
Previous grab sampling carried out in this area returned up to 61.73 grams per tonne of gold.
Drilling will then shift roughly two kilometres to the southeast, focusing on targets along two secondary structures that trend northeast and north-northeast. Previous soil samples returned up to 0.281 grams per tonne of gold, with the highest concentrations associated with the two structures.
Finally, the focus will shift a further 2.6 kilometres to the southeast near the Appleton showing, while additional work will move back to the northeast past the Cracker showing.
Roger Moss, President and CEO of Labrador Gold, said the program is a major milestone for the company.
“The last drilling on the property was in the nineties, so we are excited to drill this prospective region after a more than twenty year hiatus,” he added.
The drilling work will be supported by a C$4.05 million financing, which was announced on October 6 and has been backed by Palisades Goldcorp. Palisades has agreed to acquire all of the units on offer under the placement which, once complete, would result in an 11.7 per cent ownership of Labrador Gold.
Labrador Gold (LAB) is currently down 10.71 per cent and is trading at C$0.38 per share at 1:08pm EDT.
