New Found Gold Corp. [NFG-TSXV; NFGC-NYSE American] reported results from one diamond drill hole that was completed as part of a program designed to follow up on newly discovered high-grade gold at Keats West located west of the highly prospective Appleton Fault Zone (AFZ) at the 100%-owned Queensway project. The project comprises a 1,650 km2, accessible via the Trans-Canada Highway, 15km west of Gander, Newfoundland and Labrador.
Follow-up drilling targeting the new Keats West discovery area intersected 42.6 g/t gold over 32 metres in NFGC-22-960 that contains a higher-grade interval of 171.6 g/t gold over 6.5 metres and is situated at a vertical depth of 125 metres. This intercept is located 200 metres down-plunge of previously reported 18.6 g/t gold over 15.95 metres in NFGC-22-773 and 25 metres along strike of previously reported intercept of 17.9 g/t gold over 4.2 metres in NFGC-22-681. These holes are all interpreted to occur within the same host structure.
NFGC-22-960 also intersected a domain of near-surface, lower-grade gold mineralization over a cumulative width of 19.8 metres, within an interval of 29.8 metres, and demonstrating grades ranging from 1.18 to 2.14 g/t gold. Broad domains of lower-grade gold have now been intercepted in multiple holes over a footprint spanning 280m x 130m at Keats West.
Keats West is open along strike and down-dip. Exploration drilling is ongoing with two drills working to expand on this new discovery.
Greg Matheson, COO, stated: “Keats West is turning into a zone of special interest for New Found. Following today’s release, we have now seen gold grades from low through to high, both over impressive widths, indicating the presence of a strong gold mineralizing system.
“What makes this 32-metre intercept notable is the number of significant assay intervals that are present throughout it. Nineteen assay intervals exceeded 10 g/t gold. This interval is comprised of a substantial damage zone containing a high-density of epizonal-style quartz veining throughout including a massive vein segment spanning a down-hole length of 6 metres.”
Approximately 79% of the planned 400,000-metre program at Queensway has been drilled to date with ~65,052 metres of the core still pending assay results.
True widths of the intercepts reported in this press release have yet to be determined but are estimated to be 60% to 70% of reported core lengths.
The project has logging roads crosscutting the project, high voltage electric power lines running through the project area, and easy access to a highly skilled workforce. The company is well funded for this program with cash and marketable securities of approximately $55 million as of November 2022.
In early trading on November 28, New Found shares gained $0.19 to $5.09.