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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

Post by AlwaysLong683on Mar 24, 2022 6:53pm
199 Views
Post# 34543586

Possible Reason For Share Price on the Close....?

Possible Reason For Share Price on the Close....?
Total Number of Holes Reported:      43   (great!)

Number of Golden Joint Holes:         23

Number of Lotto Holes:                     20


Golden Joint Hole 21-462:    69.15 g/t Au over 14.15 m   =   978 gxm  (outstanding!)


Best of the other 22 Golden Joint Holes:    21-264       13.35 over 2.10  =  28 gxm

                                                                   21-389        5.91 over 2.25   =   13 gxm

                                                                   21-301         2.26 over 3.15  =    7 gxm


Best of the 20 Lotto Holes:   21-404A     31.63 over 2.05  =  65 gxm

                                             21-338       25.31 over 2.15  =  54 gxm

                                             21-367A    24.25 over 2.2   =    53 gxm


I consider a "good hole" to produce a metal factor of 100 gxm or better. While NFG has produced numerous cores exceeding this number (often by a lot), I suspect NFG's assay results vs. market expectations played a role here. Perhaps if there were some 100+ gxm holes in addition to 21-462, the share price would have held higher. Also, Lotto was a disappointment in my view.

My guess is that 21-462 excited the market initially, but when investors paused and reviewed the PR assay results in their entirety and measured it against expectations, they may have come to the conclusion that taken as a whole, the PR didn't meet their expectations for Lotto (whose assay results were a long time in coming) and Golden Joint save for the one huge core (in other words, 42 of the 43 cores were 65 gxm or less).

Not saying what happened was justified, but when you hit multiple monster holes  and others that are in the 100s re. metal factor early (like NFG did the first half of 2021), I think the market expects such results to continue in order to boost the share price significantly.

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