New Found Gold Bigger and Richer Than Fosterville?

New Found Gold Corp (TSXV:NFG) has made one of the most significant gold discoveries in Canadian history and is still below the radarscope of most investors, writes Bob Moriarty

Bob Moriarty | September 1, 2021 | SmallCapPower: I’m not a giant fan of videos. Several times daily people send me videos that I “must watch.” But my time is limited. Frankly most videos spend 25% of their total length in chatter before they get to any real point. My time means more to me.

(The following is an article originally published on 321gold.com on August 16, 2021)

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I put Tony Vamvakitis in touch with Collin Kettell many months ago. He began to do videos for New Found Gold Corp. (TSXV:NFG). Some of them do the greatest job of communication for any company I have ever watched. He is a long time experienced video producer across a variety of businesses and subjects. I know of no other video producer associated with the resource space who even comes close to him in quality of what they do.

I watched a video by him a couple of months ago. I thought it did the best job of communicating the values of NFG I have ever seen for any company. It was a simple video of a beautiful young woman named Karin Clyke who works for the company and her thoughts about rocks and working for NFG. It gave NFG a human face.

Eventually talking about intercepts and grades of gold can get really boring. NFG has completed about 40% of a planned 200,000-meter drill program. When they finish, the project is going to look like Swiss cheese. And is going to have millions of ounces of gold.

Lately he put together a series of four videos about NFG and their Queensway gold project. The last two of the videos were clips of interviews with some of the major players in the NFG story. Tony has stitched together thoughts from half a dozen people associated with the company. Together they paint an exciting future for not only gold mining but for Newfoundland.

In my last book, “What Became of the Crow?” I told the story of how Eric Sprott asked Quinton Hennigh to go to Aussie land to look at what was then called the Eagle Zone of Newmarket Gold. Newmarket had taken over Crocodile Gold a short eighteen months before. Eric Sprott had a major position in both Newmarket and Kirkland Lake Gold and wanted to know if Quinton liked Fosterville owned by Newmarket. Quinton highly supported the takeover by Kirkland Lake even though they had to pay $1 billion for what was only an OK mine at the time.

But Quinton Hennigh showed Eric Sprott that Newmarket was sitting on a wonderful high-grade zone of gold that they didn’t recognize the importance of. The merger was done over the objections of Kirkland Lake Gold management and Quinton’s prediction proved to be accurate.

Today the renamed Swan Zone that used to be the Eagle Zone has turned Fosterville into the highest grade gold mine in the world. At the time of the takeover the merged company was valued at $2.5 billion. The market cap of Kirkland later got as high as $20 billion.

Eric Sprott’s position in both companies made him $1.5 billion and made millions for Kirkland Lake management that fought the merger and still hate Quinton Hennigh. Kirkland Lake is now producing $250 million in gold per quarter. Of course we should remember that no good deed ever goes unpunished.

At the time of the takeover the Swan Zone showed an ultra high-grade of 60 grams of gold to the tonne. But was only two million ounces. They are going to run out of ounces soon. New Found Gold has higher grade gold in a more favorable jurisdiction that starts right at surface. NFG is going to be a lot bigger, richer and much cheaper to mine than Fosterville.

As you will see in their latest two videos, New Found Gold almost certainly has a lot more gold than Fosterville. Maybe ten times more gold. Eric Sprott has a bigger position in NFG than he did in Kirkland Lake/Newmarket. And down the road he is going to make a lot more than $1.5 billion.

We posted Part 3 on Friday. As of when we posted it, it had had about fifteen hundred views. As of right now it is about 5,700. NFG went up an incredible $.73 on Friday. The company has released Part 4 now. It has four views so far.

New Found Gold has made one of the most significant gold discoveries in Canadian history, certainly in Newfoundland history. It has a tiny public float and is still below the radarscope of most investors. The company touched $13.50 before making a perfectly normal 40% correction. It’s moving higher now.

New Found Gold is an advertiser. I have picked up shares in the open market and participated in a private placement with them. I am biased. Look at the two really great videos and see what the experts have to say about this incredible gold discovery.

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