New Found Gold Corp. [NFG-TSXV] reported results from drill hole NFGC-20-17, the first hole targeting the Lotto zone as part of New Found’s recently commenced 100,000-metre diamond drill program at its 100%-owned Queensway high-grade gold project, 15 km west of Gander, Newfoundland.
Two separate near-surface intervals of intense quartz veining with significant sulphide and visible gold were assayed on a rush basis and returned 41.2 g/t gold over 4.75 metres starting at 35 metres at a down hole depth, including 108.7 g/t gold over 1.65 metres, and 25.4 g/t gold over 5.15 metres starting at 57 metres in depth. The orientation of these veins is uncertain and true widths may vary from 50% to 80%.
Similar to the high-grade gold mineralization at Keats, the high-grade gold mineralization at Lotto displays characteristics suggestive of an epizonal orogenic depositional environment.
The Lotto Zone is situated along a secondary structure occurring along the east side of the Appleton fault approximately 2 km north of the high-grade Keats Zone, site of New Found’s initial high-grade gold discovery at Queensway.
In addition to the two reported near-surface high-grade intervals with visible gold, NFGC-20-17 also intersected three other zones of quartz veining and sulphide mineralization within wider structurally deformed corridors. One of these was intersected at approximately 160 metres in down hole depth. At the Appleton fault itself two intervals of quartz veining and sulphide mineralization were intersected, one on the hangingwall and one on the footwall of an approximately 30 metres wide zone (279-308-metre hole depth) of fault related fracturing and alteration.
Assays are pending for the balance of NFGC-20-17 including for all these new intervals of quartz veining and sulphide mineralization.
Greg Matheson, PGeo, CEO, New Found, stated: “We are delighted to encounter such impressive high-grade gold intervals in our first hole at the Lotto Zone. Hole NFGC-20-17 provides our first full geologic profile through the host stratigraphy on the east side of the Appleton fault. It is encouraging and exciting that at such an early stage in our exploration program, we now have two high-grade gold discoveries approximately two km apart yet within the same structural regime along the east side of the Appleton fault zone, with both areas demonstrating characteristics of epizonal-style high-grade gold emplacement.”
Three core drills are now active on the Queensway project. The first drill is working at Lotto and the second and third rigs are turning at Keats.
The Queensway Project is 15 km west of Gander and just 18 km from Gander International Airport. The project is intersected by the Trans-Canada Highway and has logging roads crosscutting the project, high-voltage electric power lines running through the project area and easy access to a highly skilled work force. With working capital of approximately $75-million the company is well financed for aggressive exploration with an initial planned drill program of 100,000 metres.
Major shareholders include Palisades Goldcorp (33%), Eric Sprott (18%), Novo Resources (11%), Rob McEwen (7%), other institutional ownership (8%), and management, directors and insiders (4%). Approximately 65% of the company’s issued and outstanding shares are subject to escrow or 180-day lock-up agreements.
In Monday October 5 trading, shares of New Found Gold gained $0.27, up 10.1%, to $2.95 on a volume of 1,905,500 shares traded.