New Found Gold Corp. (TSXV: NFG) (NYSE: NFGC) reported results from 29 diamond drill holes completed as part of a drill program intended to expand the recently discovered K2 zone in Newfoundland.
On Thursday, the company reported high grades including 27.5 g/t gold over 7.00 metres and 3.39 g/t gold over 9.60 metres and 8.69 g/t gold over 12.25 metres.
Additional expansion and definition drilling have yielded additional near-surface results, including:
- 3.48 g/t Au over 25.30m and 22.0 g/t Au over 2.40m in hole NFGC-23-1783,
- 6.18 g/t Au over 9.85m and 3.01 g/t Au over 8.35m in hole NFGC-23-1709,
- 3.14 g/t Au over 18.45m in hole NFGC-23-1904
- 19.4 g/t Au over 2.70m in hole NFGC-23-1993
All these intervals are located at shallow depths, above 65m vertical depth, and illustrate the strong continuity of gold mineralization across the K2 structure.
The K2 zone is situated 725 meters north of Lotto and 2.2 kilometers north of Keats West on the west side of the highly prospective Appleton fault zone (AFZ). New Found’s Queensway project comprises 1,662 square kilometers, accessible via the Trans-Canada Highway, 15 km west of Gander, Newfoundland.
“As we continue to expand and target specific areas within the K2 fault network with the drill bit, the results have strengthened and we have identified multiple domains of high-grade gold in addition to broad intersections of gold mineralization,” Melissa Render, VP of Exploration for New Found Gold, said.
The company is presently conducting a 650,000-meter drill program at Queensway. Approximately 7,000 meters of core samples are currently awaiting assay results.
Read more: Calibre Mining reports bonanza grade drill results at Nicaragua’s Limon mine
Read more: Calibre Mining closes top tier gold merger with Marathon Gold
Newfoundland and Labrador attractive to gold investment
Over the past few years Newfoundland and Labrador’s geological landscape and supportive government have made the province a favourable destination for gold miners.
Despite the presence of multiple companies, now including Calibre Gold (TSX: CXB) (OTCQX: CXBMF) after its acquisition of Marathon Gold’s Valentine Mine, much of the province’s terrain is still underexplored for gold.
Calibre’s acquisition has created a company with the potential to produce 500 kilo ounces of gold annually. This is achievable after the full development of Newfoundland’s Valentine gold project. Prior to the ownership transfer, Marathon had already completed approximately 50 percent of its construction. As a result, Calibre anticipates robust annual cash flow of approximately CAD$508.4 million.
Calibre also delivered favourable production results, increasing its gold output by 61,495 ounces compared to 2022. In Q4, the company produced 75,482 gold ounces from its operations in Nicaragua and Nevada, with 10,519 ounces originating from Nevada. The company expects to potentially double its production in Nevada this year as operations start at Gold Rock.
Matador Mining Limited (ASX: MZZ) is also contributing to the growing interest in Newfoundland’s gold potential. Its focus is on the Cape Ray Gold Project, where it conducted extensive exploration and drilling activities, unveiling promising gold deposits and encouraging results.
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