New Found Gold drills 89.5 g/t gold over 5.85 metres at Kingsway Project, Newfoundland
New Found Gold Corp. [TSXV: NFG; NYSE: NFGC] reported results from five diamond drill holes completed as part of a step-out program at the Dropkick Zone. Dropkick is located at the recently acquired Kingsway property, island of Newfoundland, that now forms the most northern extent of the Queensway Project and is on trend with numerous discoveries made further south along the Appleton Fault Zone (AFZ). New Found’s 100%-owned Queensway Project comprises a 1,756 km2 area, accessible via the Trans-Canada Highway, 15km west of Gander, Newfoundland and Labrador.
The highlight intervals of 89.5 g/t gold over 5.85 metres in NFGC-24-2197 and 26.2 g/t gold over 16.15 metres in NFGC-24-2193, spaced 25 metres apart, were intersected in a step-out program that has expanded the historic Dropkick Zone 75 metres along strike to the southwest. These intervals are the most significant high-grade results intercepted to date on the Kingsway block that now forms the most northern extent of the Queensway Project along the AFZ.
The Dropkick Zone is the most northern gold discovery found to date along the highly prospective AFZ. It is located 11km northeast of the primary discovery area that includes zones such as Keats, Iceberg and Keats West, indicating that the gold mineral system spans a considerable distance to the north.
Situated on the west side of the AFZ, and trending parallel to it, the Dropkick Zone now spans a strike length of 535 metres. Gold mineralization starts at surface, extends to 200 metres vertical depth, and exhibits characteristics similar to the primary discovery area consisting of free coarse gold contained in fault-fill quartz veins hosted by an interbedded sequence of siltstones and sandstones.
The high-grade intervals reported today occur on the southwest extent of the Dropkick Zone and are the first intercepts to indicate the high-grade potential for this segment of the structure. Drilling along strike to the northeast encountered lower grades accompanied by encouraging characteristics diagnostic of many of the productive structures identified to date.
These results are the first received from an initial phase of drilling with more results expected in the coming weeks. Follow-up expansion drilling is planned at Dropkick as this structure has limited testing and is open along strike and to depth.
Project Update: As previously announced, the company engaged SLR Consulting in November 2024 to deliver a maiden resource estimate (MRE) and a preliminary economic assessment (PEA). The MRE work is progressing well with results expected by early Q2 2025.
Required work programs are continuing, including but not limited to, metallurgical test work to support the completion of a PEA which is still targeted for Q2 2025.
The appointment of SLR to deliver a maiden MRE and PEA is an important milestone for the Queensway Project as it will provide the first assessment of mineral inventory and project economics, including cash flows, net present value (NPV), internal rate of return (IRR), and payback period.
Keith Boyle, CEO of New Found, stated: “This initial first-pass program at Dropkick is off to an excellent start and our team is thrilled by this early success. Until now, these grades and widths have only been observed in the primary discovery area, around the Keats Zone, over 11km to the southeast. Results like these are a testament to the strength of the gold mineral system associated with the AFZ, and this exploration discovery at Dropkick exemplifies one of the reasons that drew me to New Found: the ongoing discovery potential and district-scale growth opportunity.
“The acquisition of the Kingsway property has provided access to an additional 13km of prospective strike along the AFZ. This northern segment of the AFZ has produced several early discoveries while significant stretches across this high-priority corridor remain unexplored providing a multitude of near-surface targets and discoveries with growth potential that will be a focus of our 2025 exploration program.”
The company notes that it has not completed any economic evaluations of its Queensway Project and that the Queensway Project does not have any resources or reserves.
New Found holds a 100% interest in the Queensway Project, located 15km west of Gander, Newfoundland and Labrador, and just 18km 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 workforce. The company is currently undertaking a 650,000-metre drill program at Queensway.