Labrador Gold (TSXV: LAB; US-OTC: NKOSF) has reported the highest gold intercept to date at its Kingsway project in the central Newfoundland gold belt, about 18 km northwest of Gander.
Drillhole K-21-17, a 30-metre step out to the northeast, intersected 1.85 metres grading 50.38 grams gold per tonne starting from 71.85 metres, including 0.55 metres of 160.42 grams gold.
Drilled on the Big vein, K-21-17 has extended the high-grade, near-surface mineralisation about 40 metres along strike. The mineralisation remains open to the northeast and southwest.
The Big vein lies within a larger northeast-southwest trending quartz vein corridor that stretches for over 7.5 km with potential for expansion along the Appleton Fault zone in both directions, the company says.
Labrador Gold recently increased the drill program at Kingsway from 20,000 metres to 50,000 metres. While drilling to date has only tested Big vein over about 100 metres of strike length of the 400-metre surface exposure, and to a vertical depth of 50 metres, it has already intersected visible gold in four drill holes that cut high-grade intercepts and wide areas of gold mineralisation.
To date, approximately 4,000 metres of drilling has been completed at Big Vein.
The company plans to double the number of drill rigs to four and "will allow us to aggressively test Big Vein as well as to follow up targets developing along the quartz vein corridor," Roger Moss, Labrador Gold's CEO, stated in a press release.
Kingsway consists of 264 claims in three licenses covering approximately 77 sq. kilometres.
Labrador Gold has an option to earn 100% of the three licences, subject to cash, share payments, work commitment, and a 1% net smelter return royalty on the Kingsway North and South Licenses.
At press time in Toronto, Labrador Gold was trading at $1.61 per share within a 52-week trading range of 22.5 ? and $1.85. The company has about 149 million common shares outstanding for a $240.2-million market capitalization.