New Found Gold Corp V.NFG

RE:from a year ago as well

[megacopper]

likeike wrote:

@oldceo With 14 rigs and an ocean-sized budget, they will be producing an initial resource pretty soon and a PEA sooner than you think. The open pit potential is substantial and may be fast-tracked to get in production, with the underground following in the intermediate term. I still think this is a 10MM ounce deal with considerable upside beyond that. I'll predict 3-4MM now in the core areas. I don't think NFG can be taken over, since the insiders control >50%, but they will want to start pushing things toward production soon. I see $20, maybe higher. This will be one of the historic finds of the 2000's. I've been in gold exploration for 45 years and I've not seen one of this magnitude before. I may be wrong, but that's what makes a horse race, right?

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from #nfg,  15 Nov 2021, 18:55

 

@alwil106 @oldceo Good to have your 45 years experienced opinion, it's what I want to believe, how would you say NFG compares with ESK, PM me if you prefer.

 

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from #nfg,  16 Nov 2021, 00:06

 

@oldceo I don't really expect the open pit resource/reserve will have an "off-the-chart" average grade, since they will take some the the lower-grade material along with the high grade and the average will be affected. That said, it will add ounces and revenue. Management will go for the highest NPV, not the highest mined average grade. I do expect a stellar AISC, maybe in the $300-400 range, with 2-4MM ounces in the open pit alone. The mine/mill will pay for itself in a year and be a cash cow for many years after. This is an extraordinary discovery that will be considered historic. BTW, I have no affiliation with the Company. I'm only a shareholder.

 

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from #nfg,  16 Nov 2021, 09:42

 

@oldceo To add to my previous comment, I would say that the underground statistics may be quite different, since the structure will be more confined to cut-off and mine plan. The average mill feed from the underground operation could eclipse El Indio. Higher unit costs to mine, but much higher revenue.

 

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from #nfg,  16 Nov 2021, 09:45

 

@oldceo You could see very low AISC on the underground portion of the operation. $100 is quite possible. That said, cost inflation will drive the cost reporting. If gold price responds to the inflation effects, the number to watch will be the gross margin, i.e. received price minus AISC.

 

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from #nfg,  16 Nov 2021, 10:13

 

@ashy2classy appreciate your insight, @oldceo

 

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from #nfg,  16 Nov 2021, 10:18

 

@Snidely @oldceo One reason I don't see an open pit as being the best option (outside of resource in the top 35-50M), is that the formation so far along the Appleton has been been either hit or miss. There have been nice wide channels of high-grade (which are awesome), but the surrounding ground has been pretty barren. If you are going to wedge down to some of these deposits that have now started reaching 300M, you are going to have to move a lot of worthless terrain. With tight defined channels, seems to make sense to focus your operations on those zones via UG mining. They will start with some open pit to get some of the areas where the deposit folds up, but it won't be long until they go under

 

You can probably open pit about 2 million ounces at the Keats Zone before having to go underground with a decline. The AISC would be very low similar to Fosterville and that's what makes Queensway so valuable. Still early days with lots of blue sky potential and that is being confirmed with recent high grade gold intersections. Very little downside risk for NFG at these levels with huge upside potential that should see NFG back over $10 again soon.