New Found Gold Corp. (CVE: NFG) (NYSEAMERICAN: NFGC) discovered high gold grades, including 89.5 grams per ton over 5.85 meters, during its step-out program at the Dropkick Zone in Newfoundland.
The company reported results late last month. The Dropkick Zone is located at its recently acquired Kingsway property in Newfoundland. The property forms the most northern extent of the Queensway Project and includes multiple discoveries made further south along the Appleton Fault Zone (AFZ).
These intervals represent the highest-grade results intercepted so far on the Kingsway block. The Dropkick Zone hosts the northernmost gold discovery along the highly prospective AFZ. It’s approximately 11 km northeast of the primary discovery area—including the Keats, Iceberg, and Keats West zones—this discovery confirms that the gold mineral system extends significantly to the north.
The Dropkick Zone extends across a 535-metre strike length. Gold mineralization begins at the surface, reaches a vertical depth of 200 metres, and shares characteristics with the discovery area. This includes free coarse gold hosted in fault-fill quartz veins within an interbedded sequence of siltstones and sandstones.
“Results like these are a testament to the strength of the gold mineral system associated with the AFZ, and this exploration discovery at Dropkick exemplifies one of the reasons that drew me to New Found: the ongoing discovery potential and district-scale growth opportunity,” said Keith Boyle, CEO of New Found Gold.
Drilling along strike to the northeast has returned lower grades but also encountered promising characteristics typical of productive structures.
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New Found Gold plans follow-up expansion
These results mark the first from an initial phase of drilling, with additional results expected in the coming weeks. Additionally, the company plans follow-up expansion drilling at Dropkick. Testing here has been left the structure open along strike and at depth.
The company said that it has not conducted any economic evaluations of its Queensway Project and that the project contains no defined resources or reserves.
New Found holds a 100 per cent interest in the Queensway Project, located 15 km west of Gander, Newfoundland and Labrador, and 18 km from Gander International Airport. The Trans-Canada Highway intersects the project. Logging roads also crosscut the area and high-voltage power lines run through the site. Further, a highly skilled workforce is easily accessible.
Central Newfoundland has emerged as a highly prospective gold district, hosting multiple significant deposits along major fault structures. The region’s two primary mineralized trends, the AFZ and the Valentine Lake Shear Zone (VLSZ), have attracted exploration and development.
Calibre Mining Corp‘s (TSE: CXB) (OTCMKTS: CXBMF) Valentine Gold Mine is located on the VLSZ, southwest of New Found Gold’s Queensway Project. It represents the province’s largest gold project and is advancing toward commercial production with open-pit mining operations.
Furthermore, Calibre has issued USD$75 million on Tuesday in unsecured convertible notes through a private placement, bearing interest at a rate of 5.5 per cent per annum.
Additionally, Labrador Gold (CVE: LAB) (OTCMKTS: NKOSF) (FRA: 2N6) is exploring its Kingsway Project, adjacent to Queensway along the AFZ. Furthermore, it’s focusing on high-grade gold mineralization similar to New Found Gold’s discoveries.
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