New Found Gold (TSXV: NFG; NYSEA: NFGC) announced plans last week to launch an at-the-market equity offering to raise up to $130 million for exploration at two, wholly owned gold projects in Newfoundland.
The company has a 400,000-metre drill program underway at the Queensway project 15 km west of Gander, N.L. It also anticipates updating the resource estimate at Lucky Strike east of Kirkland Lake, Ont., near the border with Quebec.
The offering will allow New Found to occasionally offer and sell shares through the TSXV and NYSE up to the stated amount. The offerings will be made at the discretion of the company and may not reach the upper limit of $130 million. The company notes that funds will be allocated depending on the amount raised, the timing of the offers, and unforeseen future developments.
The Queensway project is a high-grade gold discovery, with New Found Gold's first hole drilled in 2019 returning 92.9 grams gold per tonne over 19 metres. There are four discovery zones on the property - Keats, 515, Golden Joint, and Lotto - all of which have bonanza grades. Drilling has returned the highest assay of 683.1 grams gold over 2.5 metres within an intersection of 11.5 metres averaging 150.3 grams gold from the Lotto zone.
The Lucky Strike property covers the past-producing Walsh mine as well as the Copper King and Norwood Kirkland exploration shafts. Gold was first drilled in 1922. It rests in the Abitibi greenstone belt, which has produced over 180 million oz. of gold over its long history. As recently as 2010, the Golden Mile zone was estimated to contain 50,930 oz. of gold (16.79 grams gold per tonne in 191,900 indicated tonnes) and 64,750 oz. of gold (4.32 grams gold in 644,600 inferred tonnes).