New Found Gold Corp. [NFG-TSXV; NFGC-NYSE American] reported results from 17 diamond drill holes that were completed as part of a continuing systematic drill program exploring a highly prospective segment of the Appleton fault zone (AFZ) immediately north of the Keats zone. New Found’s 100%-owned Queensway project comprises an approximately 1,500-km2 area, accessible through the Trans-Canada Highway approximately 15 km west of Gander, Newfoundland.
Keats North comprises multiple newly discovered high-grade gold veins in a corridor covering approximately 630 metres of strike northwards from the northern end of Keats Main to the recently discovered 515 zone, reported on April 13, 2022.
These new results are defining an extensive network of mineralized veins including Umbra, Penumbra, Apogee, Enigma, and Perigee/515 over a roughly 630 metres long x 150 metres wide area linking Keats Main and the 515 discovery area. These veins start at the surface, are generally steeply dipping, and to date have been drill tested to a maximum vertical depth of 125 metres.
Noteworthy intervals in these veins include 45.9 g/t gold over 2.75 metres in NFGC-22-578 (Umbra); 19.3 g/t gold over 2.05 metres in NFGC-22-610 (Umbra); 40.6 g/t gold over 2.00m in NFGC-22-586 (Enigma); 24.1 g/t gold over 2.20 metres in NFGC-22-580 (Enigma); and 13.2 g/tgold over 2.05 metres and 10.7 g/t gold over 2.70 metres in NFGC-22-559 (Enigma).
Due to a thin cover of glacial till there is very limited surface exposure of bedrock along the AFZ corridor including between Keats Main and Golden Joint, and until recently there had been essentially no drill testing of this gap. In early 2022 the company implemented a program of systematic grid drilling between Keats and Golden Joint leading to the 515 discovery (43.9 g/t gold over 3.85 metres in NFGC-22-515 (reported April 13, 2022) and two near surface intervals of 8.70 g/t gold over 6.75 metres in NFGC-22-533 and 275 g/t gold over 2.15 metres in NFGC-22-538 (reported May 4, 2022).
The results reported in this release are the initial assays following up on these discovery holes, with further results including several high priority holes anticipated in the next several weeks.
VP of Exploration Melissa Render stated: “Our drilling is demonstrating that the corridor surrounding the Appleton Fault Zone is prolifically mineralized via a series of interconnected structures and vein sets that form a webbing shown to occur within a few hundred-meter-wide damage zone on either side of the of the primary, crustal-scale fault. These veins are not constrained by orientation or stratigraphy, which greatly increases the amount of strike length and the variety of lithological environments to explore. In specific areas, blow outs of gold mineralization occur where veins and structures cross paths, as illustrated at Keats Main, Lotto, and Golden Joint. The complexity and extent of the system provides an opportunity for discovery in a very large volume of prospective host stratigraphy.
We have now ramped up to 14 drills to continue to accelerate our exploration and rate of discovery. Today’s news outlines an area roughly equal to the strike length of Keats, connecting two zones together that were previously separate. Drilling in this area remains sparse and shallow, with several priority assays pending.”
Approximately 56% of the planned 400,000m program at Queensway has been drilled to date with ~28,000 metres of the core still pending assay results. Fourteen core rigs are currently operating meeting New Found’s targeted drill count for Q2.
The company is well funded for this program with cash and marketable securities of approximately $77 million as of August 2022.