Vancouver-based New Found Gold (NYSE: NFGC) continues to improve its Newfoundland story with the first diamond drill hole at its Iceberg discovery producing a bonanza grade hit just 35 from surface.
While the overall assay of 27.05m at 105 grams per tonnes gold is impressive in itself, so too are the higher-grade intervals.
And while 1m at 756.96g/t is eye-catching, then a 7.3m interval at 234.69g/t means you do not have put the words high grade in quotation marks.
Another interval came back over 3.15m at 38.92g/t.
Open in all directions
New Found is targeting two fault zones at its Queensway North project, located 18km west of Gander International Airport.
This latest hit was found in a high-grade zone located 300m from the Keats Main fault zone.
It was intersected by one diamond drill hole that was completed as part of a follow-up drill program.
Iceberg is at present drill-defined over a strike of 550m, while the Keats Main-Iceberg-Iceberg East mineralized corridor has a combined strike length of 1.8km.
Iceberg and Iceberg East remain open in all directions and at depth, with several assays still pending
Newfoundland returning as a gold story
According to the Industry, Energy and Technology Department of Newfoundland and Labrador, gold exploration in the province has twice spiked and then faded.
Prospecting for gold took place mainly between the late 1800s and 1940 and then was revived after gold hit US$850/oz in 1980 (which would be US$3,120 in today’s money, so we’re in real terms still a long way from surpassing the high of 43 years ago).
Yet in 1983 only a handful of gold occurrences had been mapped on Newfoundland Island.
Today there are more than 100 identified gold zones, and exploration is at a high pitch on the island.
The first gold mine, Pine Cove, came into production in 2010 as an open pit operation, the deposit having been discovered in 1987.
Queensway North intersected by major highway
New Found’s project is intersected by the Trans-Canada Highway and a high voltage power line.
The nearby Gander airport provides regular services to Toronto and other Canadian destinations (and in the summer flights to Cuba and the Dominican Republic).
The company is at present undertaking a 500,000m drill program and has cash and marketable securities of about C$52 million.