New Found Gold Corp V.NFG

Injected Bias due to Definition versus Exploration Drilling

[nozzpack]

The three FS studies were based largely on definition drilling .
Generally, thats a grid of 25 m by 25 m .

lets check to see if that was the case.

So, we have 1600 tons per unit m of drilling as the average .
Divide by SG = 2.8 and we have 570 cu m .

As the depth is 1 meter, we have 570 m square area drilling grid for definition
drilling .
Taking the Sq Root , we have  a proxy FS drilling grid of 24 m by 24 m.

That defines a drill sampling density which in the Measured 43-101 Category verging on Probable .

This is very close to what you would expect from the grid block size of Definition Drilling .
A quick look at V Lake and they used 25m by 25m and 15m by 15 m blocks .

Now, of course, NFG drilling is entirely Exploratory.

Typically ,grid  lines are 100 m apart and holes with 30 m spacings along the grid lines.

Thats a exploration grid block size of 3000 m which is more than 5 times larger that  a 25 m by 25 m definition blocks used in FS studies .

 The sq root is 55 m which would be considered better than Inferred 43-101 category and within the Indicated 43 101 category , which seems reasonable for the NFG drill sampling rate 

So, from such obvious comparisons , it can be concluded that my estimates of gold resources in the post of July 1/24 is conservative and significantly so.

AIMHO

GLTA