New Found Gold Corp V.NFG

RE:Press release

[AlwaysLong683]

Retiredgeo wrote: Another new gold vein.  The entire Appleton fault zone is going to be a spiderweb of these gold veins.

Once they do their seismic survey and extend all of these gold veins to depth their inferred resource is going to be absolutely huge.

I will be surprised if a buyer emerges.  Narrow vein deposits can be rich and profitable but most mining companies don't want them.  They are opportunities for small and mid-sized companies which want to grow into big companies (the Kirkland Lake model).  I suspect that NFG's mine plan will be NFG's mine plan.

My bet is NFG keeps drilling for perhaps two or three more years, then gets taken out, maybe before a MRE on Keats / Lotto / Golden Joint / other rich zones they may discover in the interim (as was the case with GBR), perhaps shortly thereafter.

With great fundamental infrastructure already in place and the town of Gander just 15km east down the Trans-Canada Highway which can house mining workers without the need for a camp in the middle of nowhere, a mine and mill can be started relatively quickly once a FS is completed and financing is in place.

Eric Sprott himself is not a mine builder and owns just over 30% of the company.

Palisades (of which Kettell is CEO) which also owns slighly more than 30% of NFG, is a resource merchant bank, not a mine builder. They buy stakes in numerous resource plays with the goal of selling them at much higher prices.

Major producer, mid-tier producer, other entitiy.......given the size of the 100%-controlled, 1,500 square kilometre Queensway land package with Appleton running the entire length of the property, NFG has the potential to be a long-life, extremely low cost, high margin play - I think you're kidding yourself if you don't believe a major would be interested in such a property, but major or mid-tier, it will be the agreed-upon offer price per share that will be the bottom line for NFG common shareholders if the company is taken out. Not saying a takeout is a 100% lock, but I think it is significantly more probable than NFG building a mine themselves given the major players invested in the company.