New Found Gold (TSXV: NFG; NYSE-A: NFGC) has reported more high-grade gold results from its ongoing, 400,000-metre drill program at its Queensway project in Newfoundland.
Highlights from the drilling included 6.8 metres grading 8.7 grams gold per tonne starting from 98.3 metres in drill hole NFGC-22-533; and 2.2 metres grading 275 grams gold starting from 32.5 metres in drill hole NFGC-22-538.
Highlights from previous results released in April included 2.4 metres grading 119.45 grams gold starting from 181.6 metres in hole NFGC-21-375 and 5.9 metres grading 7.21 grams gold per tonne starting from 47.2 metres in hole NFGC-21-392.
“We have made three new high-grade discoveries over the past two months,” Melissa Render, the company’s VP of Exploration, said in a press release. “The frequency of these new high-grade discoveries is a testament to the strength and scale of the gold system at Queensway.”
Drill core from New Found Gold’s Queensway project in Newfoundland. Credit: New Found Gold.
Two out of the three discoveries the company reported in its lates release are situated 75 metres north of the project’s Keats Zone, while the 515 zone, discovered last month, is situated about 400 metres north of the Keats Zone.
Located about 15 km west of Gander, the Queensway project covers 1,500 sq. km. and is accessible by the Trans-Canada Highway. About 43% of the planned drill program has been drilled with 11 core rigs currently operating on site.
Mineralization at the Queensway project is hosted by a fold-thrust sequence of northeast-striking, steeply dipping turbiditic sedimentary rocks deposited and deformed during the closure of the Iapetus Ocean and subsequent continent-continent collision, the company says.
During this prolonged period of continued shortening, at least two regional-deformation zones developed and include the Appleton and JBP fault zones. The company considers the Appleton fault to be the main outlet for the gold mineralizing fluids.
A site visit to the Queensway project in January 2020. From left: Quinton Hennigh, director; Denis Laviolette, co-founder and president; Greg Matheson, COO. Sixth person from left is co-founder and executive chiaman, Collin Kettell. Craig Roberts, CEO, is second from the right. Credit: New Found Gold.
“The Queensway project presents a unique opportunity…based on its location along the Trans-Canada highway, its proximity to Gander, and the sheer size of the project which covers over 90 km of structural deformation which has proven to host to high-grade, near surface gold,” the company’s CEO Collin Kettell told The Northern Miner in an e-mail.
The company doesn’t plan to provide a resource estimate until it completes its drill program.
In April, western Australia-focused gold producer Novo Resources (TSXV: NVO; US-OTC: NSRPF) agreed to sell its entire stake in New Found Gold, consisting of 15 million shares or about 9% of the company’s share capital, to a corporation controlled by Canadian mining investor Eric Sprott.
At press time in Toronto, shares of New Found Gold rose to their highest level since May at $8.67 each, up from $8.35, before falling to $8.58 in the afternoon. The company has 164.2 million common shares outstanding for a market cap of $1.4 billion.
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