District scale anomalous gold found along Florence Lake greenstone belt
Vancouver, British Columbia–(Newsfile Corp. – January 25, 2018) – Labrador Gold Corp. (TSXV: LAB) (“Labrador Gold” or the “Company”) is pleased to announce the results of its initial sampling program on the Hopedale project in eastern Labrador. The results show anomalous gold in lake sediments and soils over tens of kilometres along the northeast-southwest trending Florence Lake greenstone belt. In addition, rock samples taken during the reconnaissance program returned values up to 7.8 g/t gold.
Results of the reconnaissance exploration program at the Hopedale project 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. In addition, anomalous gold in soil samples occur over approximately 40 kilometres along the southern section of the greenstone belt. (See figures at https://www.labradorgold.com/portfolio/hopedale). Gold in the soil samples highlighted geological contacts as zones of potential enrichment. Gold anomalies typically occur where the soil lines crossed contacts between volcanic rocks and sedimentary rocks.
A total of 414 lake sediment samples were collected, representing a sample density of 0.83 samples per square kilometre. Analyses of the lake sediment samples showed gold values from 0.1 to 40 parts per billion (ppb). A total of 1,916 soil samples were also taken and analyses ranged from <0.5 to 938 ppb (0.93 g/tonne) gold with 5 samples containing more than 100 ppb Au. During the sampling program, cursory prospecting was also carried out and 45 rock samples collected with gold values ranging from <5 ppb to 7.8 g/tonne.
“Finding anomalous gold over 40 kilometres in an underexplored greenstone belt is a very significant result that demonstrates the potential for discovery in Labrador,” said Roger Moss, Chief Executive Officer of Labrador Gold. “With historical spending of only about $100,000 specifically on gold exploration in the belt, we are excited to be the first to carry out a systematic and sustained work program for greenstone hosted gold.”
“I am extremely excited about the Hopedale results,” said Shawn Ryan, Technical Advisor to Labrador Gold. “My research last year indicated that we could have an Archean greenstone belt of greenschist facies mostly unexplored for gold. At the northernmost end of the belt there are actually three gold showings (Thurber Dog) discovered by Falconbridge in 1992. Since then only two small exploration programs (1996, 2004) were undertaken around the showing. These limited programs expanded the historical showing, but market conditions prohibited further follow up. Labrador Gold’s exploration program last summer was the first large program to systematically evaluate the entire greenstone belt. Results indicated that not only did we expand the known Thurber Dog showing area, but that the entire (42km) southern Hopedale volcanic belt shows anomalous gold in soil samples and lake sediment samples. Our 2018 exploration should be exciting, with follow up for the first time on these new gold in soil anomalies.”
Work during 2018 will follow up on the anomalies with detailed soil sampling and prospecting/mapping along the length of the greenstone belt undertaken during spring/summer to generate targets for potential late summer drilling. In addition, detailed mapping and sampling will be undertaken in the vicinity of the Thurbur Dog showing in the northern portion of the belt.
Roger Moss, PhD., P.Geo., is the qualified person responsible for all technical information in this release.
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. Labrador Gold recently signed a Letter of Intent under which the Company has the option to acquire 100% of the 740 square kilometre (km2) Ashuanipi property in northwest Labrador and the Nain (503 km2) and Hopedale Greenstone (458 km2) properties in central Labrador.
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. Recent regional geological mapping in the area by the Newfoundland and Labrador Geological Survey has highlighted the gold potential of the region and 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 metamorphosed iron formation.
The Nain gold project comprises three claim blocks, two of which lie along the Nain-Churchill terrane boundary. One of the claim blocks, Sneegamook, has the largest and most intense gold in lake sediment anomaly in Labrador, but no known gold exploration has taken place in the area.
The Hopedale greenstone properties cover 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. Historical exploration did result in a gold showing of up to 7.5 g/t Au (Source: Cornerstone Resources Inc. 2003, Eastern Analytical Limited Assay certificate) but no significant gold exploration has been undertaken since the discovery.
The company has 36,724,225 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
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.