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New Found Gold Corp V.NFG

Alternate Symbol(s):  NFGC

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.


TSXV:NFG - Post by User

Post by nozzpackon Oct 28, 2024 10:58am
211 Views
Post# 36284979

Napkin Math QWN ..Some derivative Outcomes

Napkin Math QWN ..Some derivative OutcomesVery simple logical outcomes cvcan be derived with independently calculated
grades.

From the The 2024 TR , it can be computed that the average grade with no cutoff and including all duster holes was .43 gram per ton.

Similarly, with a 1 gram cutoff , the average grade including all dusters was 11 grams per ton.

Further, from the same TR , it can be computed that the economic gold concentraion index ( proportion of economic gold as a per cent  of total volumes drilled with a cutoff of 1 gram per ton ) was about 3.6 % .

That is, all of the mineable gold above 1 gram cutoff would be contained in just 3.6 % of the volumes drilled.

So, we have from Napkin Math  5.55 million ounces with no cutoff.

That amounts to 172 million grams  which, divided by 0.43 grams per ton computes to  a total volume drilled of 400 million tons ( 172 m/ 0.43 gm per ton ) .

Based on TR 2024, only 3.6 % of this volume would contain economic gold with  1 gram cutoff ..which is 14.5  million tons  at a grade of 11 grams per ton computes to 5.1  million ounces.

Now, considering Napkin math estimates 4.3 million ounces at a cutoff of  of 0.9 grams per ton which is close enough to a 1 gram cutoff , to accept.

We then have 4.3 m ounces times 31 grams per on =133 million grams which divided by the average grade of 11 grams per ton = 12.1 million tons 
of economic gold ore averaging 11 grams per ton.

So, from 5.55 m ounces with no cutoff to 5.1 million ounces with a ( 0.9 gram = 1 gram cutoff ) estimated independently of napkin math after cutoffs, to 4.3 million ounces estimated by Napkin Math at a 1 gram cutoff , both estiomates based on 11 grams per ton average grade with 1 gram cutoff .

These are very close and would pretty well coincide had the search distance been extended to about 125 m .

In summary, QWN  at depths shallower than 300 meters contains at least 
12 million tons of gold containing 4.3 m ounces averaging 11 grams per ton at a 1 gram cutoff .

A lower more realistic cutoff of about 0.4 grams per ton wopuld increase the ounces by about 20 % with a somewhat commensurate reduction in average grade.

As early mining usually focuses on high grading , it would seem reasonable that  bulk sampling of Keats Trench  of the order of 50,000 tons would generate about 25,000 ounces of gold with a gross value $95 million CAD at very high net margins.

It would mean no more cheap equity raises by ATM..

AIMHO

GLTA 
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