The Financial Post reports in its Friday, Sept. 27
FP says cold water poured on New Found Gold story
2024-09-27 09:00 ET - In the News
The Financial Post reports in its Friday, Sept. 27, edition that New Found Gold has been receiving a lot of attention in Canada's exploration sector for reportedly discovering high-grade mineral deposits. The Post's Gabriel Friedman writes that a recent report by Iceberg Research, however, has raised doubts about the continuity of the deposit. The report suggests that the best drill holes may be too narrow and spread too far apart from each other to be economically viable for mining. The report said: "The deposit, explored since the 1980s, has historically been plagued by a lack of continuity: the presence of gold and grades vary widely across the deposit. Many comparable gold projects have failed due to this problem." So far, the report appears to have had little effect on investors. New Found Gold's shares are trading for $3.72, which is near where it traded before the report was released. There is little information about Iceberg Research on its website, but its stated goal is to give investors a full picture by identifying earnings misrepresentations and accounting irregularities. The reports said, "We believe that management is delaying the release of a resource estimate because continuity remains problematic."