New Found Gold (TSXV: NFG) has released it’s much anticipated initial mineral resource estimate for its flagship Queensway project. The estimate follows the company conducting 723,387 metres of drilling across 3,214 holes on the property.
Unfortunately for New Found Gold, the company has managed to assemble a resource estimate of just 2.0 million gold ounces, falling far short of investor expectations. On top of that, the estimate is based on both open pit and underground-constrained ounces, which muddies the waters further.
Highlights from the estimate include:
- Indicated: 1.39 million gold ounces at an average grade of 2.40 g/t
- Open pit: 1.25 million ounces at an average grade of 2.25 g/t
- Underground: 0.14 million ounces at an average grade of 5.76 g/t
- Inferred: 0.61 million gold ounces at an average grade of 1.77 g/t
- Open pit: 0.36 million ounces at an average grade of 1.24 g/t
- Underground: 0.25 million ounces at an average grade of 4.44 g/t
Further complicating matters for New Found Gold is the fact that its pit constrained resources are spread across over 30 open pits within a total of 23 zones and three resource areas. Underground resources face a similar problem, with those underground constrained ounces spread across 23 zones.
The company seems to understand this issue, with New Found highlighting that 73% of the ounces are contained within 24% of the tonnage in the indicated category within the open pit shells, while stating that potential exists on the property for “selective mining opportunities.”
The resource estimate is said to sit within less than 5% of the 110 kilometre long strike extent of the two major structures on the property, with expansion potential both along strike and at depth, alongside infill potential within the initial pit shells.
“This initial mineral resource estimate marks a pivotal moment for the Company, as it represents the first evaluation of gold mineralization at Queensway. The completion of this key step allows us to advance the Project, first with the completion of a PEA in late Q2/25 and potentially on to pre-feasibility and feasibility. While the economic evaluation is advancing, exploration of our highly prospective landholdings will continue, with the ultimate objective of building a major new gold mine in central Newfoundland,” commented Keith Boyle, CEO of New Found Gold.
New Found Gold last traded at $2.25 on the TSX Venture.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
