Visitors at the Queensway project in 2024. Credit: New Found Gold
Shares in New Found Gold (TSXV: NFG, NYSE: NFGC) plunged nearly a third on Tuesday after the explorer posted a long-awaited initial resource for its Queensway project in Newfoundland that missed expectations.
The project has 18 million indicated tonnes grading 2.4 grams gold per tonne for 1.39 million oz. gold, plus 10.7 million inferred tonnes at 1.77 grams for 610,000 oz. contained metal, the company said on Monday.
“Queensway’s initial resource of 2 million oz. in all categories resets the market expectation of grade and scale,” BMO Capital Markets said on Tuesday. “We were previously assuming about 2 million oz. of high grade at Keats and Iceberg augmented by at least 1 million oz. from other zones.”
The Queensway project near Gander was heralded as the centre of a Newfoundland exploration resurgence that included…
