New Found Gold Corp. (TSXV: NFG) (NYSE: NFGC) discovered high-grade gold over multiple significant intervals, including 343 grams per ton over 2.15 meters, at its Queensway project in Newfoundland.
The results from the company’s Phase II gold recovery tests were announced on Friday. The aim of the testing was to improve on the Phase I results, and included multiple different types of tests, including gravity concentration and cyanide leaching.
Exploration drilling in the Golden Dome Zone intercepted high-grade gold over significant intervals, including an exceptional result of 343 g/t Au over 2.15 meters, along with other impressive intercepts such as 40.6 g/t Au over 2.20 meters and 9.51 g/t Au over 7.45 meters. This area, known as the Golden Dome Zone, represents a new high-grade discovery situated between previously identified zones.
Earlier in 2024, New Found reported high-grade gold intercepts at the Honeypot Zone, with results like 26 g/t Au over 7.65 meters and 23 g/t Au over 5.25 meters, further demonstrating the ongoing potential for high-grade finds within the project area.
Phase II metallurgical tests revealed an impressive gold extraction rate of 97 per cent at both the Iceberg and Iceberg East zones, reinforcing the commercial viability of the ore for extraction.
“The Iceberg and Iceberg East zones have similar geology and mineralization style to the Keats Main zone that was previously reported earlier this year,” said Ron Hampton, chief development officer of New Found.
“Results from the Iceberg and Iceberg East zones also indicate excellent gold recoveries from the high-grade materials observed at the Queensway Project.“
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Ongoing exploration identifies 16 zones of interest
The Queensway project spans 1,662 km² and is strategically located near the Trans-Canada Highway, providing easy access for large-scale exploration and potential mining operations. New Found Gold has launched an aggressive drilling campaign targeting 650,000 meters, concentrating efforts along a 9.5 km corridor on the Appleton Fault and a 12.4 km corridor on the JBP Fault.
The company’s ongoing exploration has identified 16 zones of interest, with new discoveries steadily expanding the known mineralized envelope.
Recent announcements have sparked increased interest in New Found Gold’s stock, as investors and market analysts closely follow developments due to the high-grade nature of the discoveries. The company’s strong financial position, with approximately USD$41 million in cash and marketable securities as of October 2024, supports its ongoing and future exploration efforts.
Exploration at Queensway remains active. The high-grade gold discovered at depth suggests strong potential for additional near-surface finds.
Furthermore, the gravity and leach processes together suggest that the Queensway Project could be both cost-effective and environmentally responsible, which is a strong indicator of the project’s long-term sustainability.
The company noted that these Phase II results pave the way for further testing and analysis to refine the extraction process. This milestone marks a significant advance in the development of the Queensway Project, positioning New Found Gold to progress towards feasibility studies and potentially start operations in the coming years.
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Newfoundland is home to multiple gold operations
Several gold mining companies are actively developing projects in Newfoundland, attracted by the province’s significant gold potential.
Calibre Mining Corp (TSE: CXB) (OTMKTS: CXBMF), which expanded its portfolio with its acquisition of Marathon Gold earlier in 2024, is advancing the Valentine Gold Project, Newfoundland’s largest gold resource.
Located along the Valentine Lake Shear Zone, this project covers a sizable 20,000-hectare area. Calibre is focused on moving Valentine toward production, with plans for an open-pit operation. The company is investing in both exploration to expand resources and infrastructure to enhance its future output potential.
Another key player, Maritime Resources (CVE: MAE), is developing the Hammerdown Gold Project on the Baie Verte Peninsula.
The Hammerdown deposit, which was a past-producing mine, offers the advantage of existing infrastructure, including access to a local processing facility. Maritime Resources is also working to revive and expand Hammerdown with updated exploration and feasibility work, aiming to establish a high-grade, low-cost operation.
Meanwhile, Signal Gold (TSX: SGNL) (OTCQB: SGNLF), based in the Baie Verte mining district, operates the Tilt Cove Project. The project is an exploration-stage gold-copper project, near La Scie, Newfoundland, and lies approximately 45 kilometres by road from Signal Gold’s Pine Cove Mill.
Signal Gold has consolidated over 11,000 hectares of prospective mineral lands, assembling a substantial property package that spans 35 kilometres of high-potential strike length along the Nugget Pond Horizon.
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