The group completed two diamond holes totalling 501.9 metres spaced 156 metres apart at the property.
The assays show above background levels for nickel and cobalt and extend to over 100 metres at depth with a lateral extent of at least 156 metres.
King's Bay said this indicated that there could be potential for a more localized zone of economic mineralization.
"The results from our two preliminary holes at Lynx Lake are encouraging," said chief executive Kevin Bottomley.
"The fact that we are encountering similar geochemical results in both holes that are over 150 metres apart is significant.
"Lynx Lake is road accessible from right off the Trans-Labrador Highway.
"This will allow King's Bay to continue to define the area at a relatively low cost."
The drill results represent only a small fraction of the King's Bay land package, which is around 242 square kilometres (sq km), the company noted.
King's Bay is currently reviewing results and plans to assemble a team to delineate additional drilling targets.
More work will be conducted in the southern claims at Lynx Lake in the 2018 field season.
Lynx Lake consists of 959 claims encompassing a land area of around 240 square kilometers (sq km).
The “west pit” has been historically sampled yielding assays of up to 1.03% copper, 0.56% cobalt, 0.23% vanadium, 0.10% nickel and 5.0g/t (grams per ton) silver.
The project has returned historical grab samples assaying up to 1.39% copper, .94% cobalt, .21% nickel and 6.5g/t silver.
Shares fell 22% to C$0.070.