If New Found Gold Corp. (TSXV:NFG) hits similar numbers to the first hole at Keats, or better, look for them to join the billion dollar club, writes Bob Moriarty
Bob Moriarty | October 15, 2020 | SmallCapPower: New Found Gold Corp. (TSXV:NFG) drilled. New Found Gold hit. Get used to it, with a 100,000 meter drill program you are going to be hearing a lot of it.
(The following is an article originally published on 321gold.com on October 5, 2020)
While every junior resource company in Canada would love to have those kinds of numbers, the vast majority of investors would have skipped over or totally missed the most important parts of the news release. $2500 a ton rock is nice.
Lotto isn’t the primary high-grade zone. That’s Keats where two drill rigs are plugging away as I write. Keats’ numbers will be out soon and could be explosive if they repeat anything similar to the 92.86 g/t gold over 19 meters from the first hole. Lotto is some 2 kilometers from Keats. With a similar style of mineralization and bonanza grades, if Keats and Lotto join up, NFG is off to the races. After all, they are on the same trend. If you have 2 km of bonanza grade, well, you have a gold mine.
But just as significant is the depth where the high-grade intercepts took place. With a 46-degree dip, going down hole 70 meters puts you only 50 meters from the surface. That’s well within open pit parameters.
So what we know so far is that NFG has bonanza grade gold over what could be a 2 km stretch that would be easy and low cost to mine in an open pit.
The float on NFG is tiny with 81% of the shares in the strongest of strong hands. At today’s price NFG has a market cap of only $330 million but is sitting on $75 million in the treasury. Compare that to the market value of Great Bear at $750 million. If NFG hits similar numbers to the first hole at Keats, or better, look for them to join the billion dollar club.
NFG is an advertiser. I have bought shares so naturally I am biased. Do your own due diligence. There is no limit to where this company could go.
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