New Found Gold hits 19 metres of 92.86 g/t gold; plans RTO
Newfoundland welcome sign. Photo by Pierre Thiffault, Pexels.
New Found Gold has hit a high-grade, lengthy intercept in its first drill hole at its Queensway gold project, in Canada's Newfoundland province, thanks to exploration targeting supported by GoldSpot Exploration's artificial intelligence technology.
The hole intersected 19 metres of 92.86 g/t gold and 6 metres of 285.2 g/t gold. The mineralization is near surface, starting at 96 metres downhole. The intersection is within a quartz-iron carbonate breccia hosted by black shales and mixed sediments of the Davidsville Group and in the Appleton fault zone.
Ten reconnaissance have been completed with results for nine holes pending.
GoldSpot's technology allows it to take large land packages and distill all available geological information to identify the most efficient and cost-effective way to explore. The company has invested C$750,000 into New Found Gold in return for shares and royalties.
On Jan. 26, New Found Gold and Mexican Gold entered into a reverse-takeover agreement. Under the terms of the deal, New Found Gold is required to complete a financing of at least C$10 million. After the transaction, the company will have C$19 million in working capital.
The transaction is expected to be completed by the end of April and the company name will change to Bonanza King Mining.
(This article first appeared in the Canadian Mining Journal)