New Found Gold Corp V.NFG

Press release

[Retiredgeo]

New Found Gold Intercepts 62.3 g/t Au Over 2.00m at Keats Main, Extends High-Grade Zone to 845m Down Plunge - Junior Mining Network

[Global1966]

That's 5 more 100 g holes to add to the collection and 21-387 is 315m down plunge from the nearest hole. A monster in the making. Does this mean they have pretty well worked out the direction of the main vein and just need to work out the end point? If there is one? Appreciate comments from the geos on the forum.  And the words "open in all directions" is music to my ears

[Global1966]

Oops that should be 3 more 100g holes. Fat fingers

[Retiredgeo]

You can think of the gold bearing structure as a plane interseting the surface at ~40 degrees.  The line of intersetion (strike) has been defined to 800m and is still open in both directions.  The plane continues to 845m down plunge and remains open at depth (vertical depth is a rather meaningless metric).  Crunching the numbers, the plane is now 676,000 m2.  This ia big

[Retiredgeo]

Typing too fast - Interseting should be intersecting.

[suregold1]

Care to hazard an educated guess on contained ounces to date at Keats?

[Retiredgeo]

Lots of assumptions here: 800x845x3 = 2 million cubic metres  2 million m3 x 50 g/m3 = 100 million grams = 3 million ounces

[suregold]

Thanks, as I guessed wildly.

[suregold1]

Assuming $2,000 gold and a mine cost of $500/ounce with 500,000 ounces per year and a 5% discount rate we are looking at a NPV of $3,000,000,000 approximately for Keats in your example. I assume $200 million for mill development cost which may or may not be anywhere near reality. But, good for back of envelop estimate for now. Fair value of just Keats at moment seems reasonable at $10 per share or

[Retiredgeo]

Mineral deposit value = 3 million oz x $1,900 USD/oz = 5.7 billion USD It is rather pointless to speculate about the rest at this time.

[likeike]

Assuming $2,000 gold and a mine cost of $500/ounce with 500,000 ounces per year and a 5% discount rate we are looking at a NPV of $3,000,000,000 approximately for Keats in your example. I assume $200 million for mill development cost which may or may not be anywhere near reality. But, good for back of envelop estimate for now. Fair value of just Keats at moment seems reasonable at $10 per share or

[likeike]

Care to hazard an educated guess on contained ounces to date at Keats? Not I. We have not established have we that this is still just an extension of the new zone below the primary Keats zone. With sugarplums in my head I coould be dreaming of 5 mill but I am still looking for that alloy of gold and silver that runs below TCH. IKE

[Global1966]

I think you are a great simplifier of all the technical speak. Even I can understand that. Thanks very much

[AlwaysLong683]

Finally, one press release, 21 holes (including 2 south of the Trans-Canada Highway). Guess NFG wanted to separate press releases for the QA/QC Review Results and Assay Results. Fair enough, Metal Factors of best cores: 21-263     156  g x m  (Keats) 21-272     136  g x m  (Keats) 21-387     125  g x m  (Keats) One