New Found Gold Drilled a Huge Hole as a Private Company
We are in the correction that a few people accurately predicted. My gut tells me it will go into September but since the DSI predicted the top, I think the DSI will call the bottom. We have not had an all time high in either gold or silver but we did have something investors can trade.
I’d like to point out something important to investors. Liquidity is a giant hint as to what you should do if you actually want to profit. Two or three weeks ago, liquidity was off the charts and I was suggesting investors consider taking some money off the table. The mere fact that you can either buy or sell in quantity is a clue that you are near a trading top. Now the correction has taken hold and issues that were trading 2 million shares a day are now plodding along at 50,000 shares daily. When you near a bottom you can’t give shares away.
The Fed and the rest of the Central Banks have guaranteed hyperinflation and far higher values for the metals. The banking system is going to fail and we will have to invent something new.
Meanwhile up in Newfoundland a private company drilled one of the best holes I have ever heard of. That company is now New Found Gold (NFG-V). The very first hole the company drilled assayed 19 meters of 92.9 g/t gold. And better yet, the intercept started at 75 meters depth. That means it could be an open pit. And that really changes the cost figures.
The company found a line of deep pocket investors standing outside their door with big checks in their hands. As of right now, 81% of the shares are in the hands of insiders, Eric Sprott, Novo Resources, Rob McEwen and various institutions. Collin Kettell is Executive Chairman, Craig Roberts is CEO. Quinton Hennigh is a director and advisor.
Quinton believes the Keats target at what NFG calls the Queensway project is similar to the ultra high-grade deposit of Fosterville in Australia. But Queensway is a scant dozen kilometers from the major airport at Gander in Central Newfoundland. The Trans Canadian highway runs through the middle of the project.
New Found Gold just began trading ten days ago. At today’s price the company is worth an incredible $200 million but note that they are also especially well funded with about $72 million in their piggy bank.
New Found Gold has hit the ground running with a planned two-phase 100,000-meter drill program. A drill is turning now at the Little/Powerline zone as of last Monday. NFG plans six holes there before moving the diamond drill to the Keats high-grade target. At Keats the company plans 12,000 meters of drilling initially. By the end of September the company expects to have four drills turning with 2,000 meters a week drilled.
COO and QP Greg Matheson has been supervising a 30 man crew in the field since June. NFG owns 100% of the Queensway project with no NSRs. Everything I see says home run potential. If it is another Fosterville it could be a $5 billion dollar company. The first 20 drill holes will tell the story and the majors will be clamoring to buy the company. The company is either going to make a lot of people rich and famous or leave people with a lot of egg on their faces.
NFG is an advertiser. I have bought shares so naturally I am biased. Do your own due diligence. This has the potential to blow the lid off the junior mining sector and that would be very nice.
New Found Gold Corp