New Found Gold Corp. (CVE: NFG) (NYSE-A: NFGC) has returned some high value, high quality gold results from its 2025 work program at its Queensway Gold Project in Newfoundland and Labrador.
The company announced the results from its program on Thursday, including having drilled 2,691 metres in 22 holes as part of an infill program at Keats West in the Appleton Fault Zone Core.
This program targets mineralization within the Keats West MRE open pit constraints. It focuses first on converting resource blocks to the indicated category to raise confidence in high-grade zones.
A few key highlights include:
Keats West open pit infill drilling
- 55.0 g/t of Au over 35.05 m (NFGC-24-2254)2
- 20.7 g/t Au over 18.05 m (NFGC-24-2258).
- 15.4 g/t Au over 16.70 m (NFGC-24-2260).
- Confirms continuity of multiple domains of high-grade gold within Keats West.
- Defines regions of new gold mineralization within the proposed Keats West open pit that are currently outside of the MRE3 block model.
Keats West UG4 infill drilling:
- 7.08 g/t Au over 15.55 m (NFGC-24-2243A).
- Demonstrates potential to expand high-grade mineralization beyond the current open pit extents.
The company also reported results from drilling just beyond the south end of the proposed Keats West open pit. These holes tested a preliminary underground panel. As a result, the program improves both classification and understanding of near-surface and underground mineralization.
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Analyst coverage is favourable
The company will continue the Keats West work program in H2 2025. It plans to complete infill drilling targeting remaining lower-grade domains. At the same time, it will carry out expansion drilling in new mineralized areas within the open pit.
If the UG follow-up program delivers positive results, the company will expand drilling into deeper portions of the zone.
Infill drilling has already been completed at the Lotto and Lotto North zones. Meanwhile, step-out and infill drilling continues at Iceberg, K2, Dome-Lotto, and Dropkick. The company is also advancing drilling at AFZ Peripheral conceptual and early-stage exploration targets.
“Today’s results confirm the continuity and high-grade tenor of gold mineralization at Keats West, as well as the in-pit and near-pit expansion potential,” said Melissa Render, president of New Found Gold.
“These domains of high-grade mineralization start at surface and remain above a vertical depth of 150 metres and are located in proximity to other key zones, such as Iceberg and Keats in the AFZ Core area.”
Analysis for New Found Gold has come out respectable with an emphasis on the company’s positive prospects.
Roth MKM analyst Mike Niehuser also maintains a Strong Buy rating on New Found Gold with a price target of USD$5.00.
He recently lowered the target from USD$9.00 but emphasized the company’s long-term upside. Niehuser views the Queensway resource estimate as the starting line, not the finish. As a result, he sees the stock’s recent dip as a buying opportunity.
New Found Gold offers high leverage to further resource growth. Although only one analyst currently covers the stock, the outlook remains strongly positive. Continued drilling success and resource upgrades could drive additional upside in the coming months.
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