Co. Expands Gold Project With Acquisition

Source: Mike Niehuser 04/23/2024

With New Found Gold Corp.’s Queensway Gold Project 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 by an additional 12 km north along the prolific Appleton Fault Zone (AFZ). The company also reported positive drill results from both sides of the AFZ, further supporting its exploration efforts.

Roth MKM analyst Mike Niehuser, in a research report published on April 23, 2024, maintained a Buy rating and a price target of US$9.00 on NFGC, emphasizing the potential of the Queensway Gold Project to become a world-class gold district.

“While we fully expected positive exploration results to the north of Keats, we were positively surprised by the acquisition, nearly doubling the potential of Queensway North laterally and at depth,” Niehuser stated.

The Kingsway Project, which covers approximately 30 square miles, doubles the strike length of Queensway North, giving NFGC control over 20 km of strike length on both sides of the AFZ. “By comparison, NFGC believes that the Kingsway Project is ‘reminiscent of Queensway when NFGC acquired the project back 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 drill, geophysics, and seismic results, we can anticipate accelerated exploration,” Niehuser added.

The acquisition, expected to close in Q3 2024, will be completed through the issuance of C$20 million in NFGC common shares to Labrador Gold Corp. The transaction requires the approval of 66.6% of Labrador Gold Group shareholders.

In addition to the acquisition, NFGC reported drill results from 85 diamond drill holes east and 51 diamond drill holes west of the AFZ, expanding mineralization on both sides of the fault zone. The company announced the Honeypot and Jackpot discovery zones to the east, with drill highlights including:

• NFGC-23-1886 (Honeypot) – grading 10.15 g/t gold over 2.25m from 128.60m
• NFGC-24-2063 (Honeypot) – grading 14.83 g/t gold over 5.0m from 167.35m
• NFGC-23-1418 (Jackpot) – grading 43.11 g/t gold over 2.0m from 14.5m
• NFGC-23-1627 (Jackpot) – grading 11.27 g/t gold over 3.65m from 156.85m

Niehuser maintains a Buy rating and a price target of US$9.00 on NFGC, reflecting the company’s ongoing success in expanding the potential of the Queensway Gold Project through strategic acquisitions and positive exploration results.

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Disclosures for Roth MKM, New Found Gold Corp., April 23, 2024

Regulation 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 accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.

Disclosures: Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has received compensation for investment banking services from New Found Gold Corp.. Shares of New Found Gold Corp. may be subject to the Securities and Exchange Commission’s Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities. Within the last twelve months, ROTH Capital Partners, or an affiliate to ROTH Capital Partners, has managed or co-managed a public offering for New Found Gold Corp..

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( Companies Mentioned: NFG:TSX.V; NFGC:NYSE.American, )