VANCOUVER, BC, September 10, 2018 – Labrador Gold Corp. (TSX-V: LAB) (“Labrador Gold” or the “Company”) is pleased to announce preliminary results from the first phase of detailed gold exploration in the Florence Lake greenstone belt (FLGB). The company controls a 50 kilometre strike length of stratigraphy prospective for gold in the belt. The exploration program at Florence Lake followed up on successful results of 2017 and included detailed soil sampling, geological mapping, rock sampling and prospecting along the length of the belt.
A total of 7,783 soil samples were taken on 12 grids at a 100m line spacing and 25m sample spacing in the southern portion of the FLGB. All soils were dried for three days and analyzed by field portable XRF for multiple elements. Results show anomalous arsenic values in eight of the twelve grids with significant arsenic anomalies extending over 3.3km long by 800m wide and 1.5km long by 300m wide on the Misery grid and over 4.1km long by 600m wide on the Jasmine grid (see figures at www.labradorgold.com/Hopedale).
Given the good correlation of gold and arsenic anomalies shown by results of soil sampling during 2017, and the use of arsenic as a pathfinder for gold in greenstone belts, the results of arsenic XRF analyses are used to focus exploration for potential gold-rich zones.
The company is currently using an innovative technique, suggested by Technical Advisor Shawn Ryan, to follow up the soil anomalies. Geologists use a hand-held impact drill to drill 4 to 5 inch holes in outcrop in the anomalous area, collect the rock powder created and analyze it with the XRF while in the field. Use of a more homogeneous rock powder sample for XRF analysis than a simple rock chip allows for rapid in field assessment of the outcrops and further targets zones with potential for gold mineralization. Outcrops tested in this manner have shown arsenic anomalies on both the Jasmine and Misery grids (see figures at www.labradorgold.com/Hopedale).
Arsenic anomalies in soil and drill powder on the Misery grid coincide with a strong quartz carbonate alteration zone extending for more than 2km along strike. Anomalies on the Jasmine grid cover mafic volcanic rocks which are known to contain arsenopyrite locally in the wallrock of quartz veins (see news release dated August 14, 2018). In addition, recent prospecting in the vicinity of the soil and hand drill anomalies at Jasmine has uncovered a new arsenopyrite showing that has been followed along strike for 120 metres and remains open to the south.
“The use of XRF analyses of both soil and rock powder samples in the field is allowing rapid and efficient targeting of mineralized zones with the best potential, said Roger Moss, Labrador Gold Chief Executive Officer. “Discovery of arsenopyrite and pyrite mineralization during follow up prospecting demonstrates the success of the technique.”
Further follow up is ongoing with prospecting, channel sampling and structural mapping of the known and recently discovered showings.
Both soil and rock powder samples were analyzed by an Reflex Delta Model DP-2000-CC using Innov-X Delta advanced PC software. Prior to the start of analyses each day a routine calibration check was performed on the instrument using a Reflex Sandard “cal check” coin. Soil samples are analyzed at base camp and rock powder samples are analyzed at the sample site.
Roger Moss, PhD., P.Geo., is the qualified person responsible for all technical information in this release.
The Company gratefully acknowledges the financial assistance provided by the Junior Exploration Assistance (JEA) Program of the Newfoundland and Labrador Ministry of Natural Resources for the Hopedale Project.
About Labrador Gold:
Labrador Gold is a Canadian based mineral exploration company focused on the acquisition and exploration of prospective gold projects in the Americas. In 2017 Labrador Gold signed a Letter of Intent under which the Company has the option to acquire 100% of the 896 square kilometre (km2) Ashuanipi property in northwest Labrador and the Nain (503 km2) and Hopedale (458 km2) properties in eastern Labrador.
The Hopedale property covers much of the Hunt River and Florence Lake greenstone belts that stretch over 80 km. The belts are typical of greenstone belts around the world but have been underexplored by comparison. Initial work by Labrador Gold during 2017 show gold anomalies in soils and lake sediments over a 3 kilometre section of the northern portion of the Florence Lake greenstone belt in the vicinity of the known Thurber Dog gold showing where grab samples assayed up to 7.8g/t gold. In addition, anomalous gold in soil and lake sediment samples occur over approximately 40 kilometres along the southern section of the greenstone belt (see news release dated January 25th 2018 for more details).
The Ashuanipi gold project is located just 35 km from the historical iron ore mining community of Schefferville, which is linked by rail to the port of Sept Iles, Quebec in the south. The claim blocks cover large lake sediment gold anomalies that, with the exception of local prospecting, have not seen a systematic modern day exploration program. Results of the 2017 reconnaissance exploration program following up the lake sediment anomalies show gold anomalies in soils and lake sediments over a 15 kilometre long by 2 to 6 kilometre wide north-south trend and over a 14 kilometre long by 2 to 4 kilometre wide east-west trend. The anomalies appear to be broadly associated with magnetic highs and do not show any correlation with specific rock types on a regional scale (see news release dated January 18th 2018). This suggests a possible structural control on the localization of the gold anomalies. Historical work 30 km north on the Quebec side led to gold intersections of up to 2.23 grams per tonne (g/t) Au over 19.55 metres (not true width) (Source: IOS Services Geoscientifiques, 2012, Exploration and geological reconnaissance work in the Goodwood River Area, Sheffor Project, Summer Field Season 2011). Gold in both areas appears to be associated with similar rock types.
The Company has 51,442,552 common shares issued and outstanding and trades on the TSX Venture Exchange under the symbol LAB.
For more information please contact:
Roger Moss, President and CEO Tel: 416-704-8291
Or visit our website at: www.labradorgold.com