New Found Gold Corp. (CVE: NFG) (NYSE-A: NFGC) announced a Mineral Resource Estimate (MRE) for its Queensway Gold Project in central Newfoundland and Labrador, Canada.
Shares dropped 28 per cent on Tuesday. The estimate follows the company conducting 723,387 metres of drilling across 3,214 holes on the property.
The MRE incorporates multiple high-grade zones, including the Keats and Iceberg zones, which have returned significant gold intercepts in drilling.
The mineral resource estimate identifies 17.3 million dry metric tonnes of open-pit indicated resources, grading 2.25 grams per tonne (g/t) gold and containing 1.25 million ounces of gold. It also includes 9 million tonnes of inferred resources, grading 1.24 g/t gold and containing 0.36 million ounces. The report also places the open-pit MRE within a preliminary optimized pit shell, applying a cut-off grade of 0.3 g/t gold.
For underground resources, the estimate includes 0.8 million tonnes of indicated resources at 5.76 g/t gold, containing 0.14 million ounces, and 1.7 million tonnes of inferred resources at 4.44 g/t gold, containing 0.25 million ounces. Reporting panels constrain these underground resources based on a 1.65 g/t cut-off grade and a minimum mining width of 1.8 metres.
The MRE divides the deposit into the Appleton Fault Zone Core (AFZ Core), Appleton Fault Zone Peripheral (AFZ Peripheral), and JBP. The AFZ Core contains 96 per cent of the indicated resource and 87 per cent of the inferred resource, based on metal content.
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New Found Gold looking ahead to milestones
A conceptual operating scenario for cut-off grade estimation includes conventional truck-and-shovel open-pit mining and underground mining using narrow-vein longhole methods. Processing will involve crushing and grinding, gravity separation, sulphide flotation when required, carbon-in-leach (CIL), elution and regeneration, and electrowinning for gold recovery. The primary product will be doré, with a potential sulphide flotation concentrate.
Keith Boyle, CEO of New Found Gold, said that the MRE marked an important moment for the company, representing the first real evaluation of the gold mineralization at the Queensway project.
The Mineral Resource demonstrates strong continuity of mineralization because it is constrained within a pit shell and underground reporting panels.
Furthermore, recent drilling has intersected high-grade gold beyond the current Mineral Resource footprint, highlighting significant expansion potential. The company is preparing for an aggressive exploration campaign to expand the resource and further define high-grade targets.
New Found Gold is also looking ahead to achieving several upcoming milestones.
Additionally, the company intends to file the technical report supporting this MRE on its website and SEDAR+ within 45 days. The 2025 drill program is in its final planning stages. It will also include step-out and infill drilling, target delineation, and exploratory drilling.
Additional metallurgical testwork is ongoing to support a Preliminary Economic Assessment (PEA), which the company expects to release in late Q2 2025. Meanwhile, permitting and environmental baseline studies will support economic assessments and future development.
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Newfoundland has become focus of gold producers
The Appleton Fault Zone (AFZ) in Newfoundland hosts numerous gold discoveries along its significant geological structure. It is divided into the Appleton Fault Zone Core (AFZ Core) and the Appleton Fault Zone Peripheral (AFZ Peripheral). These represent areas of varying proximity to the main fault line.
Exploits Discovery Corp. (CNSX: NFLD) (OTCMKTS: NFLDF) (FRA: 634) is a key player in the region, is a key player in the region, advancing gold projects in Newfoundland. Further, Exploits’ projects are strategically located along the AFZ, and in November 2024, Exploits also launched a new drilling campaign at its Bullseye property. It has also started LiDAR and magnetics surveys along the Appleton-Dog Bay faults to identify new exploration targets.
While the AFZ is a major exploration focus, Calibre Mining Corp. (TSE: CXB) (OTCMKTS: CXBMF) is also developing a significant gold project in Newfoundland. The Valentine Gold Project is located in central Newfoundland along the Valentine Lake Shear Zone. Furthermore, it’s separate from the AFZ but reinforces the province’s strong gold potential. Experts also expect Valentine to become Atlantic Canada’s largest gold mine, demonstrating the broader geological richness of Newfoundland’s gold belts.
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