New Found Gold Corp. (TSXV: NFG) (NYSE: NFGC) has announced the discovery of high-grade gold at its Queensway project in Newfoundland, including an exceptional intercept of 343 grams per ton over 2.15 meters. These results stem from Phase II gold recovery tests aimed at improving upon previous findings through various methods, including gravity concentration and cyanide leaching. The discovery highlights the potential for significant gold extraction and positions the company for future development milestones.
High-Grade Intercepts in the Golden Dome Zone
Exploration drilling within the Golden Dome Zone has revealed high-grade gold over notable intervals. Besides the standout intercept of 343 g/t Au over 2.15 meters, additional intercepts include 40.6 g/t Au over 2.20 meters and 9.51 g/t Au over 7.45 meters. The Golden Dome Zone represents a new high-grade discovery located between previously identified zones, underscoring the expanding mineralized envelope at Queensway.
Earlier in 2024, New Found Gold reported high-grade gold intercepts at the Honeypot Zone, including 26 g/t Au over 7.65 meters and 23 g/t Au over 5.25 meters. These results further demonstrate the ongoing potential for high-grade finds within the project area.
Metallurgical Testing Confirms High Gold Extraction Rates
Phase II metallurgical tests have demonstrated an impressive gold extraction rate of 97% at both the Iceberg and Iceberg East zones. According to Ron Hampton, chief development officer of New Found, the Iceberg and Iceberg East zones share similar geology and mineralization styles with the Keats Main zone. These results indicate excellent gold recoveries from the high-grade materials observed at the Queensway Project, reinforcing the commercial viability of the ore for extraction.
Strategic Location and Extensive Exploration
The Queensway project spans 1,662 km² and benefits from its strategic location near the Trans-Canada Highway, facilitating easy access for large-scale exploration and potential mining operations. New Found Gold has initiated an aggressive drilling campaign targeting 650,000 meters, focusing on a 9.5 km corridor along the Appleton Fault and a 12.4 km corridor on the JBP Fault.
The company's ongoing exploration has identified 16 zones of interest, with new discoveries steadily expanding the known mineralized envelope. The high-grade gold discovered at depth suggests strong potential for additional near-surface finds.
Financial Stability and Future Prospects
Recent announcements have sparked increased interest in New Found Gold’s stock, driven by the high-grade nature of the discoveries. As of October 2024, the company reported approximately USD$41 million in cash and marketable securities, supporting its ongoing and future exploration endeavors. The gravity and leach processes together suggest that the Queensway Project could be both cost-effective and environmentally responsible, enhancing the project’s long-term sustainability.
These Phase II results pave the way for further testing and analysis to refine the extraction process. This milestone marks a significant advance in the development of the Queensway Project, positioning New Found Gold to progress towards feasibility studies and potentially commence operations in the coming years.
Other Gold Operations in Newfoundland
Several other gold mining companies are actively developing projects in Newfoundland, drawn by the province’s significant gold potential. Calibre Mining Corp (TSE: CXB) (OTMKTS: CXBMF), following its acquisition of Marathon Gold, is advancing the Valentine Gold Project, Newfoundland’s largest gold resource. Maritime Resources (CVE: MAE) is developing the Hammerdown Gold Project, while Signal Gold (TSX: SGNL) (OTCQB: SGNLF) operates the Tilt Cove Project.
