Along with New Found Gold Corp.'s Queensway gold project, it has the potential to become a world-class gold district, according to a Roth MKM research note.
New Found Gold Corp. (NFG:TSX.V; NFGC:NYSE.American) recently announced the acquisition of the Kingsway Project, extending its Queensway Gold Project a further 12km north along the prolific Appleton Fault Zone (AFZ). The company also announced positive drilling results on both sides of the AFZ, supporting its exploration efforts.
Roth MKM analyst Mike Niehuser, in a research report released on April 23, 2024, maintained a Buy rating and US$9.00 price target on NFGC, highlighting the potential of the Queensway gold project to to become a world-class gold district.
“Although we expected positive exploration results north of Keats, we were positively surprised by the acquisition, which almost doubled the potential of Queensway North laterally and at depth,” Niehuser said.
The Kingsway project, which covers approximately 30 square miles, doubles the lateral length of Queensway North, giving NFGC control of 20km of lateral length on both sides of the ZFA. “In comparison, NFGC believes the Kingsway project is ‘reminiscent of Queensway when NFGC acquired the project in 2016,’” Niehuser noted.
The Kingsway Project includes high-grade gold discoveries such as the Big Vein, Pristine and Golden Glove targets, which share characteristics with the Queensway Project. “It appears that with NFGC’s understanding of the AFZ, including modeling of drilling, geophysics and seismic results, we can anticipate accelerated exploration,” Niehuser added.
The acquisition, which is expected to close in the third quarter of 2024, will be completed by the issuance of C$20 million of common shares of NFGC to Labrador Gold Corp. The transaction requires the approval of 66.6% of Labrador Gold Group shareholders.
In addition to the acquisition, NFGC reported drilling results from 85 diamond drill holes to the east and 51 diamond drill holes to the west of the AFZ, expanding mineralization on both sides of the fault zone. The company announced the Honeypot and Jackpot discovery areas to the east, with drilling highlights including:
- NFGC-23-1886 (Honeypot) – grading 10.15 g/t gold over 2.25 m from 128.60 m
- NFGC-24-2063 (Honeypot) – grading 14.83 g/t gold over 5.0 m from 167.35 m
- NFGC-23-1418 (Jackpot) – grading 43.11 g/t gold over 2.0 m from 14.5 m
- NFGC-23-1627 (Jackpot) – grading 11.27 g/t gold over 3.65 m from 156.85 m
Niehuser maintains a Buy rating and US$9.00 price target on NFGC, reflecting the company's continued success in expanding the potential of the Queensway Gold Project through strategic acquisitions and exploration results positive.
You want to be the first to know about interesting things Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. |
Subscribe |
Important Disclosures:
- This article does not constitute investment advice and does not constitute a solicitation for any investment. Streetwise Reports does not provide general or specific investment advice and the information contained in Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult their personal financial advisor and conduct their own comprehensive investment research. By opening this page, each reader agrees to Streetwise Reports' terms of use and full disclaimer. Streetwise Reports does not endorse or recommend the activities, products, services or securities of any company.
For additional information, please click here.
Disclosures for Roth MKM, New Found Gold Corp., April 23, 2024
Regulatory Analyst Certification (“Reg AC”): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report reflect faithfully my personal opinions on the company(ies) concerned and its(ies) securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, linked to the specific recommendations or opinions expressed in this report.
Disclosures: In the past twelve months, ROTH Capital Partners, or an affiliate of ROTH Capital Partners, has received compensation for investment banking services from New Found Gold Corp.. New Found Gold Corp. may be subject to regulations of the Securities and Exchange Commission. Penny Stock Rules, which may set requirements for sales practices for certain low-priced securities. In the past twelve months, ROTH Capital Partners, or an affiliate of ROTH Capital Partners, has managed or co-managed a public offering of New Found Gold Corp.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business dealings with the covered companies mentioned in this report during the next three months. The materials, information and facts discussed in this report, other than information regarding ROTH Capital Partners, LLC and its affiliates, are from sources believed to be reliable but are in no way guaranteed to be complete or accurate. This report should not be used as a comprehensive analysis of the company, industry or security discussed in the report. Additional information is available upon request. However, this is not an offer or solicitation of the securities discussed. Any opinions or estimates contained in this report are subject to change without notice. An investment in the stock may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Additionally, investing in stocks may involve a high degree of risk and may not be suitable for all investors. No part of this report may be reproduced in any form without the express written permission of ROTH. Copyright 2024. Member: FINRA/SIPC.