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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 Nov 11, 2024 5:29am
114 Views
Post# 36306139

Two Stage PEA

Two Stage PEAIt would be quite logical for the PEA to be based on a two stage mining scenario.

The first stage would be about 5 years long using toll mining.

This stage ( Stage 1) would self fund the construction of a QWN mine, mill and all of the infrastructure .

Typically, the first stage is a high grading stage, selecting the best economic ore to quickly raise sufficient free cash flows for Stage 2.

Keats Trench for example fits Stage 1 quite well....very high grade and intensively sampled...to be followed by Iceberg Trench and so on.

Maritime plans to expand its milling capacity in H2 of 2025, consistent with the timing of Stage 1 mining at, say, Keats Trench.

I assume this will be done by consolidating its Nuggett Pond mill..700 tpd ..with the Pine Cove mill .
Combined in one mill, the processing capacity will then be 2000 TPD which is 700,000 tons per year.

200,000 tons per year allocated to NFG would be plenty.

The scenario I see for Stage 1 is that NFG installs a XRAY sorter at Mine site.

Based on Maritime's test results , such a sorter of high grade ore would reduce milled ore by 50 % while retaining 95% of the gold.

That is, 100,000 tons of mined ore would require only 50,000 tons to be trucked to Pine Cove and the grade would increase by 50%.

The waste ore containing 5% not separated by XRAY would be stockpiled for end of mining processing.

If, for example, Keats Trench ore grades at 15 grams per ton, this ore would enter the Pine Cove mill at a head grade of  22.5 grams per ton.

As gold recovery is positively correlated to grade, very high recoveries would be the case.

So, here is the essence of how Stage 1 toll mining of QWN ore at Pine Cove will be be based on very sound economics .

Of course, acquiring Maritine outright will add to that case as HammerDown + production of about 75,000 ounces per year would accelerate Stage 2 mine construction without dilution.

Dundee as the controlling shareholder would have to be convinced but they love spinouts.

Spin out QWS as part of the deal, incluuding the world class Talc deposit at Deer Cove, to Maritime shareholders might just do the trick.....or even a deal using PALI.

Maritime won't come cheap .
Easily $200 million if not more but spin outs would lessen that outlay .

AIMHO
GLTA


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