New Found Gold discovers new high-grade gold zone at Queensway

New Found Gold (TSXV: NFG; US-OTC; NFGFF) has found a new high-grade zone at its 100%-owned Queensway gold project in Newfoundland, 15 km west of Gander.

The discovery hole, NFGC-21-241, intersected 5.25 metres grading 430.17 grams gold per tonne starting from 207.85 metres. A second hole, NFGC-21-171, returned 4.85 metres grading 10.36 grams gold from 223.45 metres.

New Found Gold has named the new discovery Golden Joint, and it occurs in two to three sub-parallel zones about one km north of the project’s Keats zone and 850 metres south of its Lotto zone.

Drilling on the parallel Golden Joint HW (hanging wall) zone, about 150 metres east of the main Golden Joint zone, also returned several significant intervals, with drill hole NFC-21-199 cutting two metres grading 2.85 grams gold from 36 metres, including two metres of 12.70 grams gold.

“Following a high-grade hole at Lotto reported last week, the Golden Joint discovery further affirms that the Appleton Fault is host to multiple areas of high-grade, near surface gold mineralization,” Greg Matheson, New Found Gold’s chief operating officer, stated in a press release. 

Hole NFGC-21-241, he added, “appears epizonal in nature and is very similar to the high-grade gold mineralization observed at the Keats zone, which is located 1 km to the south.”

The 1,500 sq. km Queensway property, adjacent to the Trans-Canada Highway, is divided by Gander Lake into Queensway North and Queensway South. Queensway North, the more advanced of the two, has high-grade gold targets along the Appleton and JBP faults, including the Keats zone, which the company discovered in November 2019. New Found Gold identified a second gold zone at Queensway North in October 2020 called Lotto, about two km north of Keats.

The drilling is part of an ongoing 200,000-metre diamond drill program on Queensway. Currently, the company has two drills rigs operating at Golden Joint focused on stepping out from drill hole NFGC-21-241.

At press time in Toronto, New Found Gold was trading at $12.14 per share within a 52-week trading range of $1.24 and $13.50. The company has about 152 million common shares outstanding for a $1.8 billion market capitalization.