Rock samples from a central Newfoundland gold property sent half way around the world because earlier test results were called into question have landed in a lab in Perth, Western Australia, where they will be analyzed to determine just how much gold they really contain.
New Found Gold said Wednesday it expects to receive a report from the Intertek lab in Perth by mid to late January.
The company decided in November to re-test some of the core samples from its Queensway project after samples tested at two labs in Newfoundland returned different results.
While it awaits the results from 80 core samples at the Australian lab, New Found Gold is pushing ahead with work at the Queensway property.
The company has 10 drill rigs running and plans to add four more.
To date they’ve drilled just over 127,000 metres to collect core samples. According to the company’s website, they plant to drill 400,000 meters, focusing on a 7.8 km stretch along the Appleton fault and 12.4 km along the JBP fault.
Assays—the tests that determine the amount of gold in the rock—are pending for nearly 31,000 meters of core samples.
“Contracts are now in place with drillers and ramp up is expected to be complete by Q1 2022,” the company said.
New Found is also proceeding with the construction of a $3-million 25,000-square-foot building. The foundations have been poured and the structure is taking shape.
In November, the company said this facility will include 10,000 square feet of office space and 15,000 square feet of space to handle the logging and processing of core samples from the drilling program.
The company is also making arrangements with MSALABS to use the Chrysos PhotonAssayTM facility in Val d'Or, Quebec to test core samples.
New Found Gold is also working with MSALABS to install a Chrysos PhotonAssayTM instrument in Newfoundland.
The Queensway project is located about 15 km west of Gander. According to an earlier release from the company, they’ve made three high-grade gold discoveries over a 2.6 km strike zone near Appleton.
According to its website, New Found Gold has $140 million in working capital.
The company trades on the TSX Venture exchange as NFG and the New York Stock exchange (NFCG).
In the past year the share value has ranged from a low of $3.10 (CDN) to a high of $13.02. It closed Dec. 14 at $7.03 and was trading shortly after 2 p.m. Wednesday down a quarter from the opening at $6.78.