Gold Summary for July 16, 2021
2021-07-16 19:06 ET - Market Summary
by Stockwatch Business Reporter
New Found Gold Corp. (NFG), which got as high as $13.50 in early June thanks to a steady stream of bonanza-grade assays from its Queensway project in north-central Newfoundland, slumped 77 cents to $9.52 on 660,000 shares today. It is a case of "what have you done for me lately?" with investors, as late June assays of 150.3 grams of gold per tonne over 11.5 metres in the Lotto zone and 430.2 grams per tonne over 5.25 metres in the new Golden Joint zone a few days later failed to sustain the rally. Nevertheless, New Found is the project that all gold promoters with ground in Newfoundland cite enthusiastically for promotional sustenance.
Not all Newfoundland plays have been delivering glittering assays. Mike England's Sky Gold Corp. (SKYG) slid 3.5 cents to 12.5 cents on 731,000 shares Thursday on word that a 32.85-metre interval at its Mustang project returned just 0.78 gram of gold per tonne. That wider interval occurred in the North zone, while a hit in the South zone yielded 0.58 gram per tonne over 20.32 metres. The assays are from a 19-hole drill program spanning nearly 3,300 metres.
Mr. England, president and chief executive officer, says that this initial drill program at Mustang has "confirmed and expanded" the previously identified mineralized targets, although investors were apparently expecting "improved and expanded" results. Mr. England says that Sky Gold has only tested a limited portion of the entire length of the Mustang zone and there are numerous targets on the western portion of the property, as well as new gold-in-soil geochemical targets that warrant additional drilling. In other words, keep the faith, but investors struggled to do so: Sky Gold fell another 1.5 cents to 11 cents on 834,000 shares today.