New Found Gold unveils maiden resource estimate
New Found Gold Corp. [NFG-TSXV] shares fell sharply Tuesday after the company announced an initial mineral resource estimate for its 100%-owned Queensway Gold Project, located in central Newfoundland.
Following the completion of additional metallurgical test work a preliminary economic assessment (PEA) is planned for release in late second quarter, 2025, the company said.
Highlights from the announcement include an indicated mineral resource of 18 million tonnes of grade 2.40 g/t gold, or 1.39 million ounces. On top of that is an inferred resources of 10.7 million tonnes of grade 1.77 g/t gold or 0.61 million ounces.
New Found shares fell 26% or $0.59 in early trading Tuesday to $1.66. and currently trade in a 52-week range of $5.71 and $2.11.
The company said the initial mineral resource estimate sits within less than a 5.0% portion of the 110-kilometre long strike extent of two major structures controlling gold mineralization, where numerous additional gold targets have been identified.
“Recently announced high-grade gold intersections beyond the initial mineral resource estimate footprint demonstrates that gold mineralization remains open for expansion beyond this initial MRE both along strike and at depth, with most of the drilling focused within the first 200 metres of surface,’’ the company said in a press release.
“This initial mineral resource estimate marks a pivotal moment for the company, as it represents the first evaluation of gold mineralization at Queensway,’’ said New Found CEO Keith Boyle. “The completion of this key step allows us to advance the project, first with the completion of a PEA in late Q2/25 and potentially on to pre-feasibility and feasibility,’’ he said. “While the economic evaluation is advancing, exploration of our highly prospective landholdings will continue, with the ultimate objective of building a major new gold mine in central Newfoundland.’’
The announcement was noted by key New Found shareholders, including Palisades Goldcorp., a resource-focused merchant bank.
The Queensway project covers approximately 1,500 square kilometres with the initial exploration focused on areas that can be accessed by the Trans-Canada Highway, about 15 kilometres west of Gander, Newfoundland.
The project is divided by Gander Lake into Queensway North and Queensway South.
The company recently undertook a 500,000-metre drill program at Queensway. Drilling focused on a 9.5-kilometre corridor along the Appleton fault, and a 12.4-kilometre corridor along the JBP fault.
So far, New Found has discovered three robust structurally controlled high-grade deposits: Keats, Lotto, Golden Joint. These occur along an approximately 2.0-kilometre corridor of the Appleton Fault Zone on Queensway North. The company said high grade veins starting at surface with minimal overburden cover provides for quick, easy access and potential for selective mining opportunities.