After raising and spending $300 million+ since 2020 and with its market cap at one point surpassing $2 billion, New Found Gold (TSXV: NFG) finally came out with a resource estimate this evening.
NFG reported an indicated resource of 18.0 Mt grading 2.40 g/t Au, for 1.39 million oz and an inferred resource of 10.7 Mt grading 1.77 g/t Au, for 0.61 million oz.
When NIA's President called it Bre-X years ago he was only joking, but it certainly seems like a total disaster.
This was a $2 billion market cap company! They only have 2 million oz total and 392,000 oz of it requires underground mining!
So only 1.607 million open pit oz? And it requires the development of 20+ tiny open pits spread apart all over the place??? What a disaster!!!
This is why we said to buy Augusta Gold (TSX: G) it has 1.92 million oz of gold resources all for open pit mining and 95% of it is oxide gold for low-cost heap leaching in the Beatty Gold District, which is about to be developed by the world's fourth largest gold miner AngloGold Ashanti (AU) and there will be many cost saving synergies between all of the Beatty gold mines because the district contains a total of 22 million+ oz of gold!
Only Northern Dynasty Minerals (NAK)'s Pebble Mine is bigger than the Beatty Gold District, but it has the sockeye salmon situation.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA's President has purchased 224,200 shares of G and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.
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