- Labrador Gold (LAB) is moving a drill rig and crew to its Kingsway Project in Newfoundland ahead of a proposed exploration program
- The company currently has approval to drill an initial 2,600 metres in 30 holes, but has applied to drill a further 2,000 metres
- Drilling will focus on five key areas of the property, including the Cracker and Appleton gold showings
- A C$4.05 million financing was launched on October 6, backed by Palisades Goldcorp, which will assist in accelerating the exploration work
- Labrador Gold (LAB) is currently up 4.76 per cent and is trading at 44 cents per share
Labrador Gold (LAB) is moving a drill rig and crew to its Kingsway Project in Newfoundland ahead of a proposed exploration program.
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.
The Kingsway property also lies directly next to New Found Gold’s Queensway Project, where exploration recently resulted in a drilling intercept of 41.2 grams per tonne of gold over 4.25 metres.
Labrador Gold has secured approval for an initial 2,600 metres of rotary air blast drilling in up to 30 holes, but has now applied for a further 2,000 metres.
The drilling work will focus on five key areas of the property, including the Cracker and Appleton gold showing regions. Previous grab samples in this area returned up to 61.73 grams per tonne and 4.96 grams per tonne of gold.
Roger Moss, President and CEO of Labrador Gold, said he is excited to be moving ahead with the company’s first season of drilling at the Kingsway Project.
“Our crews have worked hard to get us to the point where we have defined targets to test on each of the three licenses.
“We benefitted from a large geochemical database that allowed us to rapidly focus on the most prospective areas within the property. We will continue following up the gold anomalies in this database to generate a pipeline of areas to drill,” he added.
The upcoming program is 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 up 4.76 per cent and is trading at 44 cents per share at 11:32am EDT.