Project of the Week: The Kingsway Project, Labrador Gold, Newfoundland Canada
29th November 2021
Big news out of Newfoundland as of late, with positive soundings coming from several juniors including the likes of Ethos Gold, Exploits Discovery Corp and NewFound Gold Corp on the gold trail! Check out some of the other’s news coming out of Newfoundland-Labrador in our recent article series, The Local.
One project which caught the eye this week is Labrador Gold’s (TSX-V: LAB) Kingsway project. Labrador recently announced an ear perking intersect of 76.24 G/T gold over 0.5m further bolstering confidence in the region and spurring on the regional gold rush! Labrador Gold lay claim to 3 licences covering approximately 77km², located 18km northwest of the town of Gander, Newfoundland, Canada.
This new hit comes on the back of what has been a bumper 12-18 months for the company. In late 2020, the exploration team uncovered what Labrador has titled “Big Vein”, a quartz vein exhibiting visible gold and characteristics of an epizonal gold deposit. The team has been able to map “Big Vein” for nearly 400m along strike. The location of “Big Vein” is thanks to the nearby Appleton Fault Zone (a key feature within the Gander Gold Belt) which trends NNE and can be traced for over 15 km from Gander Lake to the north (Dimmell, 2017). The area is quite prospective, with several companies reporting significant discoveries along this trend in the recent past.
Historic grab and chip samples taken adjacent to the Appleton faults zone returned assays up to 25 g/t Au with subcrop samples assaying up to 233 g/t Au. With grab and subcrop assays like this, it's no wonder why there is healthy competition when it comes to companies competing for exploration licences around the Appleton Fault Zone!
Targeting epizonal gold deposits associated with regional scale structures within the Ordovician sedimentary rocks of the Davidsville group, the Kingsway Project is Labrador Gold’s flagship property. Gold mineralisation on the property is found within quartz veins hosted in the shales of the Davidsville group. The Davidsville group, is a NNE trending belt of slate, interbedded with thick, coarse-grained greywacke units. This sedimentary package is intruded by NNE and NNW linear mafic and ultramafic dykes which dip sub vertically (Dimmell, 2017).
The “Big Vein” target is one such gold bearing quartz vein uncovered during Labrador's 2020 exploration campaign. Labrador Gold note the quartz veining as typically bright white, massive to vuggy in nature , with subordinate carbonate and sericite alteration.
The discovery of the “Big Vein” in late 2020 was a huge boost for the company, spurring on exploration efforts in the area. Boulder hunting identified quartz float in the vicinity of the “Big Vein” which returned assays of 1,065 g/t. To expand this project, Labrador conducted a soil geochemistry campaign consisting of 7,740 samples over 16 grids within the vicinity of the “Big Vein” which returned a max gold value of 9.9 g/t Au. Four areas with significant gold anomalies were identified, which are coincident with a slate hosted shear zone that extends over 2.5 km based on current field observations.
The “Big Vein” is mapped as striking over 400m SW-NE and lies within a larger corridor of intermittently exposed quartz veins spanning up to 7.5 km along strike.. Moving along this structure, Labrador conducted further mapping and sampling, taking a total of 134 grab samples over a 250m strike to the southwest. Assays of note from the grab sampling include two float boulders exhibiting visible gold and assaying 184 g/t and 65 g/t respectively (Fig.4).
In 2021, Labrador announced a 10,000m drilling campaign in early February for its Kingsway “Big Vein” target. They have subsequently increased meterage not once, but twice, after the company secured an additional $15 million in funding aimed at accelerating exploration efforts. Labrador now has a meterage target of 50,000 m set for the Kingsway Project as of June 2021, prompting a string of news releases with positive drilling results since the summer.
Key intercepts from the drilling so far have peaked the markets interest (Fig 5.). This is reflected in the 23% growth in the stock price over the past 6 months. Key to this growth is the continuous feed of positive assay results from the Big Vein itself and, in particular, the recently identified HTC Zone within the wider Big Vein target area which is also churning out high value assays (Fig 6).
Labrador Gold and it’s Kingsway Project are most certainly both on the rise, we look forward to further positive news and drilling results. One to jot down in the memory book for sure! Hopefully, Labrador can keep the investors on a tight lead and maybe even earn themselves a biscuit! (Sorry, had to include the doggy pun somewhere)!
That’s all for this week, catch ye next time!
Dimmell Peter,(2017), Mesothermal lode gold in the Davidsville Group, eastern Dunnage Zone, central Newfoundland, Canada, Atlantic Geology, v53.