Kingsway Project

Property

The Kingsway property consists of 264 claims in three licenses covering approximately 77 square kilometres. The project is located approximately 18km northwest of the town of Gander, Newfoundland.

Infrastructure is excellent with road access to the project off the Trans Canada Highway, nearby railroad and power and plentiful water.

Labrador has an option to earn 100% ownership in the three licenses,  subject to cash, share payments, work commitment and a 1% royalty on the Kingsway North and South Licenses.

Geology

Exploration at Kingsway is targeting epizonal gold deposits associated with regional scale structures in Ordovician sedimentary rocks of the Davidsville Group. Previous work suggests that gold mineralization is associated with regional structures, particularly where second order cross structures occur. This has been further demonstrated by the New Found Gold discovery to the south of the Kingsway Property, where gold mineralization appears to be related to structures cross cutting the crustal scale Appleton fault zone.

Two different styles of gold mineralization have been identified to date on the Kingsway property.

The first is associated with quartz veins hosted by gabbro as exemplified by the Cracker showing discovered in 2001 when a grab sample returned gold values up to 33.87 g/t Au. (Pollet and Saunders, 2002). Trenching in 2002 further defined a mineralized zone approximately 2 m wide and 10 m along the length of the trench. Drilling indicated a wider zone, up to 7 metres, that was continuous at depth, although no significant assay results were found (Pollett and Saunders, 2002).

The mineralized zone is made up of an altered gabbro with a gossanous weathered surface. Quartz carbonate alteration of the host gabbro is the most common alteration observed. Pyrite is the main sulphide mineral with concentrations reaching up to 60% in places with local minor chalcopyrite.

Quartz veining in gabbro at the Cracker Showing.

The second style of mineralization is gold mineralization in quartz veins hosted by shales of the Davidsville Group. This style of mineralization was discovered by Labrador Gold during the 2020 exploration program. The quartz veining is typically bright white, massive to vuggy, locally stylolitic with carbonate and sericite alteration. Vugs often contain euhedral quartz infilling. Fine grained visible gold (Figure 8) has been observed in annealed quartz and vuggy gray quartz in four occurrences. The features of the quartz vein and the visible gold are characteristic of epizonal gold deposits. 

Examples of visible gold in quartz vein samples from the Kingsway Project.

Big Vein Target

Labrador Gold’s comprehensive exploration program on the Kingsway project conducted over five months during the summer and fall of 2020 led to the discovery of visible gold in quartz vein (Big Vein). The gold mineralization shows features characteristic of epizonal gold type deposits and Big Vein has now been traced over a strike length of 400 metres. Big Vein lies within a larger corridor of intermittent quartz veining (quartz vein corridor) over a northeast-southwest trending strike length of 7.5 kilometres. Mapping indicates that quartz veining within the corridor is hosted by dark grey-black shales of the Davidsville Group, a stratigraphic horizon which hosts several gold occurrences in central Newfoundland.

Big Vein in the vicinity of visible gold samples.

Significant (>1 g/t) gold assays in the vicinity of the initial visible gold samples have now been reported from rock samples over a 100 metre strike length, up to 30 metres north and 70 metres to the southwest.

In addition, gold values in the soils up to 9,946ppb (9.9g/t Au) were found along Big Vein with three additional samples assaying greater than 1,000ppb (1g/t Au) and 19 samples assaying greater than 100ppb (0.1g/t Au).

The four highest gold values occur between 100 and 300 metres to the southwest of the visible gold locations and suggest the potential for additional gold mineralization in this area. The overall anomaly extends over 500 metres to the southwest of the visible gold sample locations and extends the strike of potential quartz vein related gold mineralization in this area to 600 metres.

Gold anomalies in soil samples have also been found elsewhere on the property some of which are partly coincident with the quartz vein corridor and represent targets for future work.

Ground magnetics and VLF-EM have proved useful in defining structures and possible alteration zones. A resistivity high clearly outlines the north-east trending quartz vein corridor indicating more widespread quartz veining and/or silicification.

A 10,000 metre diamond drill program, constant of 43 holes, is proposed to test the gold mineralization in the Big Vein area.

Maps