Labrador Gold Corp. (TSXV: LAB) (OTCQX:NKOSF) (FNR: 2N6) shareholders approved the sale of the Kingsway Project in Gander, Newfoundland to New Found Gold Corp. (TSXV: NFG) (NYSE: NFGC) by a majority of 87.8 per cent.
The company said on Thursday that NFG will pick up 100 per cent interest in the project in exchange for CAD$20 million in shares, including all property and mining rights associated with the property. The transaction is scheduled to close on July 9, 2024.
The Kingsway project is located in the Gander area of central Newfoundland. It comprises four licenses that cover approximately 12km of the Appleton Fault Zone, an area associated with numerous gold occurrences.
The project benefits from excellent infrastructure, being just 18km from the town of Gander. It possesses road access, nearby electricity, and abundant local water. LabGold has been actively drilling to target high-grade epizonal gold mineralization along the Appleton Fault Zone. Furthermore, it has outlined seven gold prospects to date.
Roger Moss, President and CEO of Labrador Gold, emphasized the team’s diligent efforts over the past four years to identify and test targets along the promising Appleton Fault Zone.
“Our work led to the discovery of seven gold occurrences out of nine drill-tested targets, achieving a 78 per cent success rate,” Moss said.
He noted that the recently completed NI43-101 Technical Report highlights several untested targets on the property. It also includes potential extensions of existing gold occurrences.
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Newfoundland and Labrador are attractive to junior exploration companies
Newfoundland and Labrador have rapidly gained popularity as a premier gold mining destination. The provinces have attracted significant interest from both junior exploration companies and established mining firms. The region’s geological landscape is rich with mineral potential, particularly within the prolific Appleton Fault Zone and other major fault systems.
Recent discoveries of high-grade gold deposits have spotlighted the province’s untapped resources, driving an exploration boom.
Companies are drawn to Newfoundland and Labrador not only for its promising geology but also for the province’s supportive regulatory environment and efficient permitting process, which facilitate smooth and expedited project development.
Several prominent gold mining companies have established a strong presence in Newfoundland and Labrador, capitalizing on the region’s rich mineral potential. Calibre Mining (TSX: CXB) (OTCQX: CXBMF) is pulling gold out of the ground at the Valentine Lake project.
Sokoman Minerals Corp. (TSXV: SIC) (OTCQB: SICNF) is advancing its Moosehead Gold Project, which has yielded encouraging exploration results. Additionally, Signal Gold Inc. (TSX:SGNL)(OTCQX:SGNLF) is focused on its Goldboro project.
It promises substantial gold reserves and has shown positive drilling outcomes. These companies, among others, are driving a gold rush in Newfoundland and Labrador, highlighting the region’s emergence as a hotbed for gold mining activities.
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