New Found Gold Corp V.NFG

Low capital cost to develop Queensway

[megacopper]

I agree with the article that it could be as low as $200 million dollars to build a mine to process the gold at Queensway. You will get a lot of gold from a small volume of rock. The crusher / mill / gravity separation operation will be cheap to build and cheap to operate. The AISC will be very low, perhaps lower than Fosterville so the profits will be huge.

And given the relationship that New Found Gold has with Sprott Mining they could probably finance most of it with a credit facility similar to what Marathon Gold did with Sprott Mining. NFG could still do a financing to raise more money when they need it but they can do so at a time that is more favourable to the company at higher gold prices and most likely a higher share price for NFG.

[AlwaysLong683]

mega, if you are referring to the MOZ PR dated March 31, 2022 entitled "Marathon Gold Closes US$185M Credit Facility for the Valentine Gold Project", the source of the financing is "Sprott Private Resource Lending II LP" Marathon Gold Closes US$185M Credit Facility for the Valentine Gold Project   TORONTO, March 31, 2022 (GLOBE NEWSWIRE)    Marathon

[megacopper]

Yes sir that is the deal I was referring to although as you point out it is with a private Sprott Lending Company. I'm thinking if New Found Gold decides to develop Queensway themselves (most employees of NFG and people around central NL think they will) than most likely they will go the same route that Marathon Gold went with the credit facility giving New Found Gold the necessary working

[rusty111]

Almost sounds like a royalty company play. Seabridge Gold is in a more advanced situation looking to partner with a major then ( go it alone ). Who knows maybe a buyout too still very early  kudos 

[eldreco]

Sorry Rusty, I beg to differ.  I have tracked Seabridge for years....Rudi has put together an amazing parcel - with (albeit low-grade) gazillions of ounces.  Unfortunately, in the middle of nowhere.  No road access, certainly a ways to power...the Capex will be huge to get it going.  (like a billion and a half!).  Daunting for any major partner...60 million+ ozs or not

[TheGreekGoldGuy]

Eldreco  NFG has high grades and extremely low projected mining cost. When they start pouring in a few years, gold will be over $2000 and the NFG share price will be lot higher than it is today.  The GGGhere, time is running out to back the truck up and load it up with NFG shares. 

[eldreco]

Thanks GGG, Even today SEA is at $17.5 - on miniscule volume.  Don't know how he does it - but Rudi is a great stick-handler.  I was in PVG for years but always wondered how a non-producer was always valued more than such a producing mine as PVG is (but let us not talk about that management stuff right now). However, in both cases, you have companies with all the right stuff (NFG in

[likeike]

Thanks GGG, Even today SEA is at $17.5 - on miniscule volume.  Don't know how he does it - but Rudi is a great stick-handler.  I was in PVG for years but always wondered how a non-producer was always valued more than such a producing mine as PVG is (but let us not talk about that management stuff right now). However, in both cases, you have companies with all the right stuff (NFG in

[eldreco]

Thanks Ike, The necessity of the tunnel was daunting!  Puts the deal to acquire Snowfield from PVG in some perspective.  Rudi is trying to buy a road out.  Further, explains the whole deal with Eskay Mining (who also needs road access) to JV the building of the road to the northeast of ESK property. It might be the Golden Triangle...but it still doesn't mean that it isn't a

[AlwaysLong683]

I agree that if (when?) a mine is built, it needs to be sizeable and worthy of such a deposit. Building a smaller mining operation only to find the need to go bigger in the not-too-distant future means added expense - must re-hire / bring back all the contractors, engineers, mine-building equipment, mine-building workers, the sourcing building materials, etc. a second time to start up again and

[AlwaysLong683]

Sorry, that should read: In most Canadian jurisdictions this threshold is 66 2/3% of the votes cast at the meeting of the target company’s shareholders.

[wajac]

Thanks alwayslong for taking the time to post. But really most of us on this board don't need to be schooled. Do you constantly reread your posts and congratulate yourself for being so clever?

[AlwaysLong683]

Yes.

[JRafflesUK]

I agree with the article that it could be as low as $200 million dollars to build a mine to process the gold at Queensway. You will get a lot of gold from a small volume of rock. The crusher / mill / gravity separation operation will be cheap to build and cheap to operate. https://stockhouse.com/companies/bullboard/v.nfg/new-found-gold?postid=34768762   It seems that all the gold in the

[braindeadoldguy]

This post has been removed in accordance with Community Policy

[paydirtontario]

Speaking for myself and a few will agree, I'm more interested in the share price here then if it becomes a mine or not . Buyouts welcomed and all bids considered 

[Retiredgeo]

The speculative bubble has come and gone.  Good press releases barely make the stock budge.  The share price is now a function of resources, reserves, costs, profit margin/oz etc.  As a share holder I would rather they develope it themselves than except a low ball offer.  All bids will not be considered, not that any of us have any say in such matters.

[wajac]

Retiredgeo, you may very well be correct in your assertion that  NFG may be better off by developing Queensway themselves. That is a change in my position that there is greater shareholder value in selling. Developing and selling later may be the better option as  I don't think  there is currently anyone out there who will pay what we consider fair value. Barrick may be one

[likeike]

Mostly agree with your assessment of Barrick but although may not get to quick to producing 500,000 a year what if their profit margin passes as if they are producing 1 million? The profitability with low cost of production cannot be ignored but when you can dig it out of the ground 5 times cheaper than most of your mines you better have another bar then just producing more than 1/2 mill oz

[paydirtontario]

Thanks , the company will do what the company wants btw this is about money , enjoy the ride . https://youtu.be/mdYYcMH4dmw  

[Maxmoe]

Maybe you can ask alwayswrong to go bash some more boards and pump nfg on those same boards.  It's especially ludicrous to attack other nfld gold plays. Like shootin yourself and your money in the foot.