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New Found Gold Corp V.NFG

Alternate Symbol(s):  NFGC

New Found Gold Corp. is a Canada-based mineral exploration company. The Company is engaged in the acquisition, exploration, and evaluation of resource properties with a focus on gold properties located in Newfoundland and Labrador, Canada. The Company holds a 100% interest in the Queensway Project, which comprises an approximately 1,662 square kilometers area, located about 15 kilometers (km) west of Gander, Newfoundland and Labrador, and just 18 km from Gander International Airport. The Queensway Project is divided by Gander Lake into Queensway North and Queensway South. The Company also owns a 100% interest in the Kingsway property, which consists of 264 claims on three licenses covering approximately 77 square kilometers. The project is located approximately 18km northwest of the town of Gander, Newfoundland. The Company is undertaking a 650,000-meter drill program on Queensway. It has royalty interests underlying Keats South and several additional zones in Queensway.


TSXV:NFG - Post by User

Comment by Snidelyon Sep 26, 2021 6:49pm
207 Views
Post# 33921332

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:So Snidely

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:So SnidelyThis is where we see things very differently.  Although there is money to be made from running a gold mine, that also comes with huge risks and huge capital requirements that need to carried for upwards of 5-10 years until the mine actually goes into production.  Yes, the junior does give up some upside, but they usually give up all the downside too.  

So by selling off jewelry box by jewelry box, I think that maximizes return for the NFG shareholders versus having to make a deal to try to fund mining operations while also funding ongoing exploration operations.  All of those capital costs are either going to dilute the bejesus out of the current shareholders, take all the cream off the top through royalty sales, or bog the company down with huge amounts of debt.  I don't see any of those as favorable and it doesn't lead to full exploration of Queensway to systematically find all the jewelry boxes on the property.

I used to be in the camp of thinking that NFG should develop it themselves.  A few conversations with people in the industry that I trust and respect really changed my way of looking at things.  

Where are all agree is that NFG should maximize its earnings from Queensway.  We just have very different views on how that is best accomplished. 


likeike wrote: So if we sell Keats to some major and they mine it until we prove up our next jewelry box

and they buy that one and so on do we just keep finding jewelry boxes so they can make

all the real money?

Are you making us indentured slaves to to the major because we are not smart enough 

to figuire out how to mine ourselves?

I highly doubt there is gold on every square inch of the property but sometimes I wonder.IKE


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