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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 30, 2024 8:10am
215 Views
Post# 36380519

2.7 m ounces at 11 grams gets us NPV5 of $10.4 Billion cad

2.7 m ounces at 11 grams gets us NPV5 of $10.4 Billion cad

...that is, after tax at $POG of $2000 US



Lets take the 2022 FS of our impoverished orogenic sibling Valentime Lake ( which I did own under MOA ) which has also drill tested that gold lodes exist down to at least 1000 m .

The FS was based on 2.7 million ounces of Reserves averaging 1.6 grams per ton contained within 3 open pits down to 300 meters of depth and generated by 381,000 meters of drilling 

The essentials at $2000 US POG...

LOM..................................14.3 Years 
Average Production........195,000 ounces 
AISC.................................$1046 US per ounce
LOM Free Cash flows ........$1.78 Billion 

After tax NPV5................................$1.05 Billion

The derivative metrics

NPV5 generated per meter of drilling  = $1.05 B / 381,000 m =$2750 .

QWN meters drilled above 300 meters = approx 550,000 m 

Estimated QWN NPV5 at $2000 US POG and Grade of 1.6 grams per ton is $2750  X 550,000  = $1.5 Billion CAD.

Modelled average grade of QWN is 11 grams pdr ton .

Adjusting for grade differential ( 11/ 1.6 = 6.9 ) we estimate QMN NPV5 after tax above 300 meters at $2000 US POG to be $1.5 Billion CAD  X 6.9 = $10.4 Billion CAD .

So adjusting for the larger area drilled at QWN and much higher QWN grade,  at $2000 US POG , we arrive at a NPV5 of over $10 billion CAD.

At $2600 US POG , simple computations arrive at a NPV5 of just over $18 Billion CAD.

Divide by 2 to be very conservative  adn we arrive at QWN shallows drill defined todate of about $9 billion  which is about $40 per share 



Still want to be  ultra consevative ?

Divide by 2 again and we have a short term fair NAV5 value of $20 per share 

AIMHO

GLTA



https://www.globenewswire.com/news-release/2022/12/07/2569765/0/en/Marathon-Gold-Announces-Positive-Updated-Feasibility-Study-for-the-Valentine-Gold-Project.html 

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