#GoldMining #NewFoundGold #ResourceEstimate #MiningNews #Investing #MineralExploration
New Found Gold has finally released its long-awaited initial resource estimate for the Queensway project, but the results have left investors and industry watchers scratching their heads. After five years and over $269 million spent purely on exploration, the estimate outlines just 2 million ounces of gold across both open-pit and underground mining models, with grades and distributions raising more questions than answers.
The report highlights 1.39 million ounces of indicated resources at an average grade of 2.4 g/t and 610,000 ounces of inferred resources at 1.77 g/t. While there’s some high-grade potential, the fragmented nature of the resource—spread across 23 zones—raises doubts about economic viability. For context, $134 per ounce in exploration costs is far from ideal, and the sharp drop in share price ahead of the announcement signals the market’s lack of confidence.
Compounding the uncertainty is a mass exodus of leadership at New Found Gold, with multiple executives departing since the start of the year. The stock is down nearly 40% in six months, and investor sentiment remains bleak.
The company plans to release a preliminary economic assessment later this year, with a feasibility study to follow, but questions about funding, project feasibility, and management stability loom large. While there’s potential along the project’s untapped strike length, the immediate outlook is dim.
What’s next for New Found Gold? Can they recover from this setback, or is it time for investors to cut their losses?
Timestamps:
0:00 Intro: New Found Gold’s Long Wait
0:31 The Initial Resource Estimate Breakdown
1:55 High-Grade Potential and Challenges
3:08 Fragmented Zones: Economic Viability Concerns
4:18 Management Departures and Market Sentiment
5:31 What’s Next: PEAs, Drilling, and Funding Questions