New Found Gold Corp V.NFG

3 Independent FS Estimates of Keats Trench Ouncese grasde I

[nozzpack]

Mining Statistics from three recent FS studies ( 2022-23 ) of open pit  orogenc  deposits in Canada  were used to estimate the ounces of gold contained within the Keats Trench of the Keats discovery of QW North of NFG.
The Keats Trench has drill defined  surface area of 200 m by 70 m = 14,000 sq meters .

It has been drilled to depths in excess of 300 m but as 300 m tends to be about the average depth of the three calibration deposits, Keats Trench open pit was assumed  to extend as well to 300 m .

Its total mined volume would there be 200 **70 ** 300 = 4.2 m cu meters .

A Specific Gravity, upon obsevation , is close to 2.75  tons per cu meter.

That is, the Keats Trench is estimated to contain about 11.6 million tons of ore .
The grade of Keats trench is estimated to be 15 grms per ton.

Grades, contained M &I ounces, total ore mined, total volume mined ( includes waste) , total ore milled ( crushed and separated ) of these three FS pits are all described in the table below, as extracted from their published FS.

Such statistics reduced to contained M  & I ounces ( including Inferred ) per cu meter of total mined ore for each deposit were then used to extrapolate contained ounces in the Keats Trench based on the cu meters of contained mining ore of Keats Trench ( 4.2 m cu meters ).

As these estimates were based on grades quite different ( lower )  than that estimated for Keats Trench ( 15 gms / ton ) , the final estimate of contained ounces for Keats Trench were adjusted upwards depending on the ratio of K Trench grade to FS deposit specific grades .

RESULTS 

The first obsevation is that these 3 FS arrived at remarkably consistent separation of economic ore from waste ore contained within the open pits .

On average , the economic grade ore was estimated to be about 12.5 % of the pit contained ounces  with little variation between these three pits .

With grades of veins in the Keats Trench being on average 7.5 times higher...ie wider ...it can be  postulated that Keats Trench can be mined more efficieintly than the smaller veins in the three calibration deposits .

Based on volumes of mineralized ore in the Keats Trench ( 4.2 m cu m ) it is estimated that, when adjusted for grade differentials, the Keats Trench putative open pit  contains over 700,000 ounces of economic grade gold .

Further, when that average contained gold ounces per sq meter   of Keats Trench are extrapolated to Keats Main, K2 and Iceberg drill defined surface area ( 391,000 sq meters ) , over 20 million ounces would be contained in those 3 deposits above 300 m of depth.

Of course , those three discoveries by themselves are only a modest proportion of the total drill defined surface area of ALL discoveries todate at QW North and that currently  defined area itself is only about 50 % of the current mineralized strike of 1.9  km.

Consider also that these orogenic gold deposits commonly are mined at depth greater than 1000 m .

Taken together.......modest area of Queenie  drill sampled to date , only 300 meters or so drill defined at depth , Queenie South , 5 times larger than Queenie  North , along the same faulted zone , limited but hghly prospective drill results , and  I am remined of RetiredGeo earlier statement that Queensway would contain over 100 million ounces when all is said and done .

Divide by 4 that estimate and the imputation  from the table below fully extrapolated , its diffcult to rationally conclude that Queenie  will have less  than 25 million ounces when all is said and done .

Thats a level of risk aversion that is rarely encountered in gold investing .

June is my favorite month here on this  blessed Rock within the Great Sea.
This year will be too .

AIMHO
GLTA

	GoldBoro	Valentine Lake	Lynn Lake	Keats Trench
Ore Mined ( mt )	139 m tons	397 m tons	372 m tons	(11.6 m tons)
Mined Ore Volume	50.3 cu m	217 cu m	135 cu m	(4.2 cu m)
Ore milled	15.8 m tons	52 m tons	48 m tons
% ore Milled	11.4%	13.1%	12.9%	(12.5%)
Grade	2.80 gms ton	1.90 gms ton	1.60 kms ton	15 gms ton
Gold Resources	1.49 m oz	3.96 m oz	2.8 m oz
Oz/ Cu m  mined	29500	18500	21000	(23,000)
Est K Trench Oz	124,000	78,000	88,000	(97,000)
Grade Adjust Ratio	5.4	7.9	9.4	7.6
Adj K Trench Oz	670,000 oz	610,000 Oz	830,000 oz	( 740,000 oz )
K Trench Area				14,000 sq m
K Trench  Oz/ sq meter				(53,000)
Keats/Iceberg Area				391,000 sq  m
Keats/ Iceberg Extrap Ounces				(20.7 m ounces)