Labrador Gold (TSXV: LAB) announced on Monday the discovery of visible gold in quartz vein at its Kingsway project near Gander, Newfoundland. Two occurrences of visible gold in quartz vein were found, the first in outcrop and the second in subcrop, separated by approximately 15 metres.
The quartz vein occurs in an underexplored area of the Kingsway property where recent mapping and prospecting have uncovered a corridor of northeast-trending quartz veining hosted primarily in green-grey to black shale that extends over a strike length of at least 550 metres.
Prospecting has revealed that quartz veins along this corridor locally contain pyrite, chalcopyrite and arsenopyrite. According to Labrador, fine grained visible gold has been observed in annealed quartz and vuggy gray quartz in the two occurrences.
The company said these features are characteristic of epizonal gold deposits similar to those identified on New Found Gold’ s (TSXV: NFG) Queensway property to the south. New Found Gold recently announced a high-grade discovery at Queensway, with a drill intercept of 41.25 m at 22.3 g/t Au from the Keats zone.
“The similarities to the gold mineralization at New Found Gold’s Keats zone to the south are striking and gives credence to the district-scale potential of the gold mineralization. We intend to aggressively follow up these occurrences with further detailed sampling and mapping, RAB drilling and, in the new year, diamond drilling,” Labrador Gold president and CEO Roger Moss said.
In late October, Labrador secured financial backing from Palisades Goldcorp, which became its biggest shareholder, following a C$4 million financing. The miner said the investment was “a vote of confidence in the company and in the potential of the Kingsway project.”
Shares of Labrador Gold jumped 8% by midday Monday, having risen as high as 20% earlier in the session. The Vancouver-based gold miner has a market capitalization of C$46.8 million.
