Labyrinth Resources (ASX: LRL) reports that it has encountered visible gold during maiden diamond drilling at its Denain Gold Project in Quebec, Canada.
The program intersected a series of new mineralised zones parallel to the project’s North and South veins, with results indicating the potential for a ‘much wider’ zone of overall mineralisation than previously thought. Visible gold was reported 23.04m downhole within a previously undefined structure.
With the 1,200m phase 1 Denain drill program set to wrap-up in November, Labyrinth notes that it expects to commence phase 2 work totalling 3,400m in the first week of December.
This second phase of drilling will likely include 15 holes tasked with testing vertical and strike extensions of the North and South veins along with following up intersections on newly-defined structures.
In addition to drilling, Labyrinth has recently completed a channelling campaign which resulted in the recovery of 8 samples from surface outcrops of the North and South veins, following up from a reported 33.2g/t rock chip assay reported earlier in November. These samples have been submitted for laboratory analysis, with assays pending.
Labyrinth recently completed the purchase of a 100% interest in both the Denain and Labyrinthe assets for total cash consideration of CAD$5 million
At its namesake Labyrinthe Gold Project, the company reports that it has already begun work on operational readiness tasks in preparation for maiden underground exploration which is due to commence in January 2022. A number of contractors have been engaged to carry out work to prepare the project for winter exploration. This includes ventilation, electrical and compressed natural gas underground, along with road maintenance and snow-ploughing capabilities at surface.
Exploration is set to test the ‘under-explored’ Boucher lodes located in the footwall of the existing mine structure, along with providing data for resource definition and expansion of the existing McDowell, Talus, Shaft and Front-West lodes.
Labyrinth recently announced to market that it had completed the purchase of a 100% interest in both the Denain and Labyrinthe assets from Nippon Dragon Resources for total cash consideration of CAD$5 million, broken into instalment across 2021 and 2022.
