New Found Gold Corp V.NFG

Stockwatch

[CliffordBooth]

mike Gold Summary for Nov. 11, 2022 2022-11-11 18:39 ET - Market Summary by Stockwatch Business Reporter Collin Kettell's New Found Gold Corp. ( $NFG ) lost 10 cents to $5 on 243,000 shares. The flow of assays remains a trickle, but the company recently expanded its land position at Queensway, its bonanza-grade gold project along the Appleton fault, just west of Gander in north-central Newfoundland. The additional 13,755 hectares of ground includes just over six kilometres of untested strike along the Appleton fault, so it comes at a cost -- a "very reasonable upfront cost," assures Greg Matheson, the company's chief operating officer. That upfront cost -- $200,000 in cash and just under 40,000 shares -- will of course be augmented by further staged payments over the next five years. Those payments, due in early November from 2023 through 2027, sum to $2.15-million in cash and just over 447,000 shares -- a grand-total value of nearly $5-million. (The payments go to three individuals, Joshua Vann, Aidan O'Neil and Suraj Amarnani, and their private VOA Exploration Inc.) The new ground is contained in three blocks, the most promotable of which lies immediately north of the existing Queensway North block, which is home to New Found's rich strikes at Keats, Golden Joint and Lotto. The new block also spans several kilometres of strike along the less explored JBP fault zone, where New Found has identified several gold prospects, including the No. 798, No. 1744 and Quartz Pond targets at Queensway North. While the location appears favourable, one must also note that the new ground is not immediately along strike of the rich discoveries along the Appleton fault, as Dr. Roger Moss's Labrador Gold Corp. ( $LAB ) owns ground between the two areas. Labrador, up 1.5 cents to 30 cents on 308,000 shares today, has produced some bonanza-grade assays of its own from its property, but over narrow intervals unlike the hits farther southwest on Queensway. And so the $5-million question is: Do the thick intervals of bonanza-grade gold continue to peter out as one moves northeast along the Appleton fault, or has Labrador Gold just been unlucky so far? At this point, Mr. Matheson is hedging his bets: any decision on drilling, he says, will be made after a first phase of ground work and evaluation on the new ground.