New Found hits 61.8 g/t gold over 13.7 metres at Keats, Newfoundland
New Found Gold Corp. [NFG-TSXV; NFGFF-OTC] has released more impressive results from drilling on the Keats Zone at its Queensway Project in central Newfoundland.
The latest results, released Tuesday March 16, are from three holes drilled as part of the company’s ongoing 200,000-metre diamond drill program at the 100%-owned Queensway Project, which is located on the Trans-Canada Highway, 15 kilometres west of Gander.
The program was launched after the company recently completed an initial public offering that raised $31.4 million from the sale of shares priced at $1.30 each.
“Drilling at Keats continues to expand the impressive zone of high-grade gold mineralization,” said New Found CEO Craig Roberts. The highlight interval of 61.8 g/t gold over 13.7 metres is the furthest south and deepest drill intercept to date and indicates the continuation of a very strong mineralizing system capable of producing broad intervals of high-grade gold in this direction.
“Our excitement continues to grow with this success at Keats, further bolstered by our high-grade discovery at Lotto, 2 kilometres to the north, and by other recent high-grade drill intercepts along the Appletone Fault Zone,” Roberts said.
He said the company has recently managed to shorten the turnaround time on assays and this in combination with the ramp up to eight drills will significantly accelerate the volume of assay results and news flow.
“We look forward to reporting further results from Keats, Lotto, and our testing of plus 12 high-grade targets along plus 20 kilometres of the Appleton and JBP Fault Zones,” Roberts said.
New Found shares advanced on the news, rising 4.4% or 17 cents to $4.04. The shares are currently trading in a 52-week range of $4.90 and $1.24.
Mineralization at Queensway been interpreted as epizonal-style gold mineralization similar to that found in the high-grade Swan Zone at Kirkland Lake Gold Ltd.‘s [KL-TSX, NYSE, KLA-ASX] Fosterville Mine in Victoria, Australia.
Highlights from four holes released on October 27, 2020, include 22.3 g/t gold over 41.35 metres and 31.2 g/t gold over 18.85 metres.
Backed by an investor group that includes Robert McEwen and Eric Sprott, New Found Gold is a mineral exploration firm involved in the acquisition, exploration and evaluation of resource properties in Newfoundland, Labrador and Ontario. According to information on its website, New Found is currently the largest mineral claimholder in Newfoundland and Labrador.
The Queensway Project consists of 86 mineral licenses, including 6,041 claims, comprising 151,030 hectares of land located near Gander. It 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 skilled workforce.
The company acquired the property rights by map staking mineral licenses and making a series of staged payments in cash and common shares from 2016 to 2019 under nine separate option agreements.