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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 Dec 07, 2024 8:55am
154 Views
Post# 36350840

Rough Scoping of QWN 5% Discounted NPV after tax

Rough Scoping of QWN 5% Discounted NPV after tax

I use V Lake 2022 FS as my projection basis.

Its After tax NPV5 at $2500 POG is $1.7 Billion cad.

That is based on Reserves of 2.7 m ounces grading 1,6 grams per ton .

My calculations , including the top 7 QWN prospects at drilled pit depths equivalent to those of V Lake ( 260 m ) , estimate just over 15 million ounces of Reserves for those 7 prospects , with an average grade of 11 grams per ton .
 

That is, those 7 prospects contain 6 times more revenue producing ounces as V Lake ( 15 m/ 2.7 m )
from whence the QWN after tax NPV 5 becomes about $10 billion cad.

But, there is more to that difference .
 

Because of low grades, V Lake needs a 10,000 tpd mill which costs over $800 million.

At 11 grams per ton , QWN can get by with 1500 tpd for equivalent production of 200,000 ounces per year.

Further high grades means lower cash costs .

Roughly speaking , QWN 7 best Prospects should produce a after tax NPV 5 of about $11 billion at $2500 POG and reseves of 15 m ounces 

Typically, producers now trade at about 0.75 times the NPV....

If you wish to be more conservative, Napkin Math estimates close to 7 million ounces of Reserves....about $5 billion after tax NPV5.

These are extraordinary numbers for just a portion of QWN and largely excludes depths below 300 meters ..




 

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