Labyrinth Resources’ is on the trail of something significant at its high-grade Denain gold project in Quebec, Canada after a 4.45kg rock-chip sample returned a whopping 33.2 g/t gold and 21.1 g/t silver.
The sample was collected by the company’s geology team, GoldMinds Geoservices, as part of preparatory field works for a maiden surface diamond drilling program.
Labyrinth (ASX:LRL) said the rock chips were taken from an identified sheared pyrite zone of the outcropping North Vein where very limited exploration has been completed.
Labyrinth has now implemented an expanded surface channel sampling program along the North Vein strike.
The program will be completed in the coming days for priority sample submission to the ALS laboratory in nearby Val d’Or and complements the initial Denain diamond drilling exploration campaign, which kicked off this week.
Reinforces value and potential
Speaking to the sample result, chief executive officer Matt Nixon said that the returned grade of 33.2 g/t gold reinforces the value and potential of the acquisition.
“It is extremely pleasing to receive a significant early affirmation of the high-grade nature of the Denain prospect, particularly considering the North Vein has historically been interpreted as supplementary to the more prominent South Vein.”
Nixon said the company looks forward to unlocking the resource upside of both Denain and the flagship Labyrinthe Gold Project.
Acquisition of gold projects
This announcement follows LRL’s completed transaction of both projects on Tuesday from Nippon Dragon Inc for an initial CAD$2m, with the balance of CAD$5m payable in two equal instalments of CAD$1.5m due on May 8, 2022 and November 7, 2022.
LRL is now rapidly implementing its exploration focus at the two high-grade gold projects, with diamond drill rig mobilisation at Denain for immediate commencement of a 4,000m program and preparatory works initiated at Labyrinthe for underground diamond drilling, expected to kick off in January 2022.