Option to acquire 100% of two licenses from Shawn Ryan in an area of excellent infrastructure.
Licenses cover over 14km of the potential extension of the Appleton fault zone associated with many of the gold showings, including the new discovery, on New Found Gold’s Queensway project to the south.
The two licenses represent the most prospective areas for gold of a 45km by 15km regional till and vegetation sampling program conducted over 3 years.
VANCOUVER, British Columbia, March 03, 2020 (GLOBE NEWSWIRE) -- Labrador Gold Corp. (TSX-V: LAB) (“LabGold” or the “Company”) is pleased to announce the acquisition of two licenses near Gander, Newfoundland from Shawn Ryan. The licenses are along strike to the northeast of the recently announced gold discovery of New Found Gold of 92.86g/t Au over 19 metres in Hole NFGC-01 on their Queensway Project. The licenses, Gander South and Gander North, consist of 264 claims covering an area of 6,600 hectares (66 square kilometres). Note that gold values in adjacent properties in similar rocks are not indicative of mineralization on the Gander licenses.
The company has the option to acquire a 100% interest in the two licenses subject to TSX Venture Exchange approval as follows:
Payment of $1,250,000 cash and issue 2 million shares as follows:
$250,000 cash and 400,000 shares following TSX venture exchange approval
$150,000 cash and 250,000 shares on the first anniversary of the option agreement;
$150,000 cash and 300,000 shares on the second anniversary of the option agreement;
$200,000 cash and 350,000 shares on the third anniversary of the option agreement;
$250,000 cash and 400,000 shares on the fourth anniversary of the option agreement and
$250,000 cash and 300,000 shares on the fifth anniversary of the option agreement.
Additional payments based on exploration expenditures will be made as follows:
$750,000 on $10 million expenditure on one of the licenses
$750,000 on $20 million expenditure on one of the licenses
$750,000 on $30 million expenditure on one of the licenses
The Company will also grant a 1% net smelter return royalty (NSR) to the Vendor plus $1 per ounce of gold in a measured and indicated resource. An advance royalty of $50,000 per annum for each property will be payable starting in 2026.
The Company also undertakes to spend $750,000 on each license over the first four years.
“I am very happy to see this district is getting the attention it deserves,” said Shawn Ryan, Technical Advisor to LabGold. “I started with 2,200 claims in 2016, and with over 1700 till samples and 3,700 vegetation samples taken over an area of 45km by 15km in 3 years have whittled it down to the most prospective 264 claims. I am looking forward to continuing my relationship with LabGold to aggressively explore these licenses.”
The two licenses cover over 14 kilometres of strike length of the potential Appleton fault zone extension. The Appleton fault zone is associated with many of the gold showings, including the new discovery, on New Found Gold’s Queensway project to the south. Exploration over the past four years including till, vegetation and soil sampling has demonstrated the prospectivity of the licences, particularly along the extension of the crustal scale Appleton fault zone.
Roger Moss, President and CEO, stated: “We are very happy to continue our relationship with Shawn and work together to discover more gold along the same structural trend that hosts the recent New Found Gold Discovery. We believe this area has great potential for the discovery of orogenic gold deposits associated with deep seated structures. Work already completed on the licenses to date indicates significant gold anomalies in till, vegetation and soil samples along the extension of the Appleton fault zone. We intend to systematically explore this very prospective trend during 2020 to delineate drill targets.”
The licenses occur in an area of excellent infrastructure, situated just 16km northwest of the town of Gander with good road access, nearby electricity and abundant water.
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. In 2017 Labrador Gold signed a Letter of Intent under which the Company has the option to acquire 100% of the Ashuanipi property in northwest Labrador and the Hopedale property in eastern Labrador.
The Hopedale property covers much of the Florence Lake greenstone belt that stretches over 60 km. The belt is typical of greenstone belts around the world but has 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 57,039,022 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
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.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0c20a9e0-1ac1-4172-8fbd-38df6b67db7d