VANCOUVER, British Columbia - New Found Gold Corp. (TSX-V: NFG, NYSE-A: NFGC) has announced the results of its Phase I Metallurgical Testing Program for the Queensway Project, located near Gander, Newfoundland. The testing, which began in 2023, was conducted on samples from three mineralized zones: Keats Main, Golden Joint, and Lotto.
The company reported that weighted average gold extraction from 116 variability composite samples ranged between 90% and 96%. These results were obtained using gravity separation and carbon-in-leach (CIL) methods on the gravity tails. The Phase I testing confirms that the gold mineralization at Queensway is amenable to these conventional extraction methods.
Gary Simmons, an independent consultant and internationally recognized metallurgist who supervised the test work, noted that the results confirm the high-grade nature of the project and the suitability of gravity separation and CIL for gold recovery. Ron Hampton, Chief Development Officer of New Found, echoed Simmons' comments, highlighting the excellent gold extraction rates from the mineralization.
As part of the ongoing development, New Found has initiated a Phase II metallurgical testing program focusing on the Iceberg and Iceberg East zones. Samples have been sent to Base Metallurgical Laboratory Ltd. in Kamloops, BC, with testing expected to commence in Q2 2024.
In addition to the metallurgical update, New Found provided a quarterly update on its at-the-market equity offering program. Since its inception on August 26, 2022, the company has issued 6,614,143 common shares at an average price of C$5.66 per share. In the last fiscal quarter, 2,561,690 shares were issued, yielding gross proceeds of C$11,878,079.
New Found's audited financial statements for the fiscal year ended December 31, 2023, included an audit opinion with a going concern qualification. However, this does not represent any change to the company's financial statements or its Annual Report on Form 40-F.
The company is currently undertaking a 650,000m drill program at Queensway and reports being well funded with approximately $53.6 million in cash and marketable securities as of April 2024.
This article is based on a press release statement from New Found Gold Corp.
InvestingPro Insights
New Found Gold Corp. (NFGC) has shown promising results from its Phase I Metallurgical Testing Program, but investors considering a stake in NFGC should be aware of the financial metrics that paint a broader picture of the company's current market standing. According to real-time data from InvestingPro, NFGC holds a market capitalization of $683.5 million, which is a significant figure for a company in the exploration and development stage. This valuation is reflected in the company's high Price / Book multiple of 14.15 as of the last twelve months ending Q4 2023, indicating that the market has high expectations for the company's asset value.
However, the financials also reveal challenges, including a negative operating income of $77.62 million over the same period. This aligns with one of the InvestingPro Tips, which notes that analysts do not anticipate NFGC being profitable this year. Moreover, the company's P/E Ratio stands at -10.34, further emphasizing the lack of profitability over the last twelve months. Despite these figures, NFGC's liquid assets exceed its short-term obligations, suggesting that the company maintains a solid liquidity position to support its ongoing projects.
For those looking for growth potential, another InvestingPro Tip highlights that NFGC has experienced a strong return over the last month, with a 14.33% price total return, demonstrating a positive short-term investor sentiment. Additionally, the company has achieved a notable return over the last five years, which could be of interest to long-term investors.
For investors seeking a deeper analysis of New Found Gold Corp., there are additional InvestingPro Tips available that could provide further insights into the company's financial health and future prospects. Utilize coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription for access to these valuable tips and metrics. As of now, there are 9 additional InvestingPro Tips listed for NFGC, which could be instrumental in making a more informed investment decision.
It's important to consider these financial metrics and tips in the context of New Found Gold Corp.'s operational updates and future plans. While the metallurgical results are encouraging, a comprehensive analysis of the company's financial health is essential for potential investors.
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