New Found Gold makes new high-grade discovery dubbed ‘Honeypot’

New Found Gold (TSXV: NFG; NYSE-AM: NFGC) has found a new, high-grade zone at its Queensway gold project 15 km west of Gander, Nfld. The company released results of 16 diamond drill holes that tested the ‘Honeypot zone,’ located 230 metres north of the Jackpot zone and on the east side of the Appleton fault zone.

Highlights include:

• NFGC-23-1810: 26.35 grams gold per tonne over 7.7 metres, including 101.72 grams gold over 1.8 metre and 24.06 grams over 0.5 metre.
• NFGC-23-1828: 2.05 grams gold over 14.7 metres.
• NFGC-23-1900: 6.7 grams gold over 6.2 metres, including 16.93 grams over 0.5 metre and including 17.24 grams gold over 1.1 metre.
• NFGC-23-1931: 23.05 grams gold over 5.3 metres, including 71.42 grams over 0.5 metre, 67.99 grams over 1 metre, and 11.39 grams over 1 metre.

New Found recently increased its drill program at Queensway to 650,000 metres. The project, which the company first drilled in late 2019, doesn’t have a resource estimate yet.

Gold at Honeypot is hosted within a primary fault that has been defined by drilling over a strike length of 280 metres to a depth of 190 metres. The domain shows good continuity, and the grade appears higher at depth.

New Found VP of exploration Melissa Render said the 2024 drill program will follow up at Honeypot to expand the known mineralization. 

In a note to clients, Jacques Wortman, a mining analyst at Laurentian Securities wrote the news was slightly positive.

“Based on NFG’s track record of identifying and delineating new zones at Queensway North, we have elected to add Honeypot to our database despite its early stage of exploration,” he wrote. “Based on our tabulation of the initial Honeypot assays, our risk-adjusted estimate of the conceptual gold inventory at Queensway North has increased slightly to 4.1 million oz. (from 4.05 million oz.) and our conceptual net asset value (NAV) has increased to $8.32 per share (from $8.24).”

New Found Gold’s discoveries along the Appleton Fault zone at its Queensway project in Newfoundland. Credit: New Found Gold

New Found recently said it may consider a future toll mill option at Queensway, if it can outline an economic resource and studies to support development.

The company’s shares traded this afternoon in Toronto at $4.42, down 0.8%, giving it a market capitalization of $8.47. New Found shares have traded in a 52-week range of $4.41 and $7.70.