New Found Gold Corp V.NFG

RE:RE:RE:RE:RE:RE:RE:RE:drill results NEW FOUND INTERCEPTS 146.2 G/T AU OVER 25.6M

[atchouk]

https://www.youtube.com/watch?v=4vLwL5sOl04

megacopper wrote:

 

ronreagan wrote: Thanks MegaCopper, very reasonable conclusions.

I find the facts that you cite vis-a-vis the comnparison to KL very, very interesting. For those who don't get it, KL is mining at 1,000 meters deep, and NFG is finding all their bonanza intercepts at about 300 meters. That means NFG can mine using the OPEN PIT method (read about 1/4 cheaper in AISC than what KL has to pay). To me, that is a HUGE advantage. Am I right on this?

One does need to undertsand, however, that these intercepts (e.g. 25.6 meters at 146.24 g/t) are still subject to being reduced by 60-80% because of the angle/dip of the drill hole - in other words, the 146.24 g/t may end up being only 60% of the 25.6 meters, but that would put us at 15.36 meters. However, in my lay mind, that is not necessarily a disadvantage - as long as the intervals are 2 meters or more we can mine it. Ultimately, as they continue to drill we will get the ultimate geologic model that they are no doubt continuing to build with "every" hole it seems. Good times ahead. 

Another consideration we ALL must keep in mind: How much price appreciation can we reasonably expect for a company that has yes some great drill results but does not yet have a mill? That's a tough one - anybody who has any comparisons to such situations in the past, that would be great information if you have it! I know Aurelian down in Ecuador was purchased by Kinross for about $1.2 Billion (22.00 per share, about 36.5 Million shares O/S), based on 10 million ounces of gold and 14 million ounces of silver, as determined by drill results. But I'm gonna say that was a fire sale price, as the government of Ecuador had changed the mining laws and basically seived the property to the detriment of Aurelian (I wonder which government officials got paid of fin that deal). 


 

 

 

The comparison to Aurelian is a poor one because it's in a different country and Kinross and the Equador govt basically stole that deposit. It was shameful what went on there with that entire situation. I think Eric Sprott got shafted big time on a financing done up in the 30 dollar range on ARU if I remember correctly. Probably why he hardly invests in foreign countries anymore. Another thing with making comparisons with buyouts from decades ago and I am at fault as much as anyone else is the costs associated with mining back at that time were different and the price of gold was much much lower. So something that was worth one or two billion back at that time would most likely be worth 3 to 5 billion dollars now if a major wanted to buyout a company with 13 million ounces like ARU had. 

The best comparison for Queensway would be Fosterville because it is presently being mined at today's gold price and associated costs of today in a stable govt of Australia similar to Canada. The ASIC at Fosterville is less than $450 an ounce. The big difference between Fosterville and Queensway would be the high grade Swan and Eagle Zones at Fosterville started 1000 meters in the ground whereas The Keats and Lotto Zones start right at surface like you so astutely pointed out. So that would be a big advantage for Queensway for the first several million ounces before having to go underground. It would be like scrapping off 10 billion dollars worth of gold right near surface for very little costs. Talk about sweet!!! It doesn't get any better. They could have a crusher on-site at Queensway and NFG could bring the ore up to the mill at nugget pond on the Baie Verte Peninsula that Maritime Resources owns and that Crescat and Quinton Hennigh recently invested in by the way for anyone keeping score. I was wondering why they were interested in that Hammerdown deposit near Kings Point. Perhaps they have other plans for that mill. Just a thought.