New Found Gold Corp V.NFG

Alternate Symbol(s): NFGC

Metals & Mining Gold

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.

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New Found Gold Corp > Remember Feb 2009

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Comment by eldrecoon Jul 06, 2022 8:23pm

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Post# 34806958

RE:RE:RE:RE:RE:RE:RE:Remember Feb 2009

Alwayslong,
While I hear the cautionary note that you are sounding - I would think that the company has already factored the cost of drilling + assay costs into their budget. At this moment, having the data-set from the ongoing programs, is I think, more important to moving ahead than worrying overly much about any immediate cash-raise. Given the ideas of what we think the company is pursuing...better to have the info...the money will follow!

What was the old EST maxim...you must not appear to come from survival...better to come from success.. (the Erhard philosophy, as applied, was quite loathsome...but it did have some good take-aways for the emotionally shell-shocked).

Damn the torpedoes, Mr Hardy, full speed ahead!
best to all,
El d

AlwaysLong683 wrote:
NFG has the luxury of now having three labs doing assay work for them.

In addition to Eastern Analytical, NFG also uses ALS and now MSALABS (Chrysos PhotonAssay). Not sure if any other Newfoundland explorer uses any lab other than Eastern Analytical.....?

NFG's PR dated May 5 states that it had "...commenced shipping drill core samples from its Queensway project to MSALAB’s newly commissioned Chrysos PhotonAssay lab in Val d’Or, Quebec."

However, the PR also states "... The Chrysos PhotonAssay method is non-destructive and New Found’s QA/QC program will include fire assay/metallic screening of sample material post photon assay for comparison of the results. This process of follow-on fire assay will continue until an adequate data population is acquired to allow the Company to fully validate the Chrysos PhotonAssay method on Queensway samples."

In other words, over the near term, the photon assay results from MSALABS will be checked via fire assay to verify results, so this is what's likely causing the delay in getting assay results from MSALABS.

One thing that does concern me:

If the fire assay labs are so backed up and NFG needs to verify the photon assay results with traditional fire assays before releasing them, should NFG be pounding out so many cores such that the backlog just gets larger and larger? Drilling costs money and the quicker NFG spends this money, the sooner they will need to do another equity raise based on the share price at the time of the raise. Thus, 12 rigs currently in operation with NFG indicating they plan on increasing the number to 14 seems like overkill given the backlog. I guess it's too late now given the likelihood that NFG has already entered into agreements with the drilling contractor(s) for a given term (1 year? If so, when do the agreements expire - anyone know...?). Perhaps they should at least re-think expanding the drill count to 14.