New Found Gold steps out Keats, shares up

27.10.2020, 21:14 - eeppo

Drilling around last year’s discovery hole at the Keats zone within New Found Gold’s wholly owned Queensway gold project in Ontario has returned long intervals of high-grade gold.

The explorer has released results of four holes, drilled as part of a 10-metre step-out pattern around discovery hole NFGC-19-01, which hit 19 metres of 92.9 g/t gold starting at 96 metres. This drilling was aimed at establishing the geometry and orientation of the veins that make up this high-grade gold system.

Drill highlights include 7.9 metres of 24.1 g/t gold from 92 metres – this hole was drilled 10 metres to the north, and above, last year’s discovery intercept. An additional hole, also drilled 10 metres north of NFGC-19-01, hit 18.9 metres of 31.2 g/t gold from 89.7 metres.

Midday Tuesday, New Found Gold’s stock was up 10% on the TSXV

Drilling north of, and below the discovery hole, returned 41.4 metres of 22.3 g/t gold starting at 82.7 metres; and 18.4 metres of 15.8 g/t gold from 101.7 metres.

In the press release, Greg Matheson, New Found Gold’s COO, noted how these initial step-out results suggest good continuity of the gold mineralization.

“We are very pleased that our initial step-out drilling at Keats is demonstrating strong continuity of veining and high-grade gold mineralization.  Our 10-metre step out pattern around hole NFGC-19-01 is providing valuable information about the orientation of veining and grade distribution.”

Matheson added that the historic work, combined with the more recent drilling at Keats, has traced gold mineralization over at least 300 metres of strike; the zone remains open. New Found Gold plans to continue step-out drilling in this area.

Additional assays are pending – these include 50-metres step outs to NFGC-19-01.

A 100,000-metre diamond drill program is ongoing at the 1,500-sq.-km project, which covers a 105-km long section of the Dog Bay suture, associated with several large-scale gold systems. Queensway is 15 km west of Gander.

Midday Tuesday, New Found Gold’s stock was up 10% on the TSXV. The company has a C$465 million market capitalization.

(This article first appeared in the Canadian Mining Journal)