New Found Provides Update on Its QA/QC Program and Announces Collaboration with MSALABS to Utilize Chrysos PhotonAssayTM Methods for Its Queensway Project
November 04 2021 - 6:33PM
Business Wire
New Found Gold Corp. (“New Found” or the
“Company”) (TSXV: NFG, NYSE American: NFGC) is pleased to
provide an update regarding its QA/QC Program at Queensway and to
announce its plans to proceed with Chrysos whole-core PhotonAssayTM
methods for the assaying of core samples from its 100%-owned
Queensway Project (“Queensway”), located on the Trans-Canada
Highway 15km west of Gander, Newfoundland.
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Figure 1. Scatter Plot, 30 Half-Core
Verification Samples versus 30 Original Half-Core Samples, October
2021 (Graphic: Business Wire)
- As part of New Found’s ongoing technical and QA/QC work,
independent consultants, RSC, recently submitted 30 half-core
samples to Eastern Analytical (“EA”) for assay. The other half of
these drill core intervals had previously been assayed by ALS
Minerals (“ALS”) and incorporated into the Company's reported drill
results. A scatter plot comparing these results is provided in
Figure 1.
- RSC has concluded that the EA half-core samples consistently
returned lower grade assays than ALS assay grades for the original
half-core samples, and that these data suggest a strong bias in
these results that particularly seems to be present in the
higher-grade samples.
- Results from a set of 10 similar half-core verification samples
were received and reviewed in May 2021. Differences observed in
these assay results when compared to the original half-core samples
were determined by New Found’s independent consultants to be not
statistically significant.
- The Company is now proceeding with a program to further assess
the presence and source of the bias, and to implement steps based
on its findings.
- The bias observed in the 30 verification samples could be
caused by one or a combination of the following: nugget-effect,
sample selection bias and/or any part of the process of sample
preparation or analytical methods used at the laboratories. The
certified reference material (“CRM”) submitted as part of the
Company’s internal QA/QC program did not identify a bias at either
laboratory, however it should be noted that the CRM’s do not test
the entire metallic screening process.
- Two test programs have been designed by RSC with input from the
Company to identify the potential sources of bias.
- The first program will test whether there is a bias between the
two labs and will involve submitting 167 half-core samples to ALS
for crushing and splitting into two equal lots. The two splits are
to undergo the standard metallic screening process at the two
respective labs, EA, and ALS.
- If a statistically significant bias is demonstrated in test
program one, test program two will determine which laboratory
produced the bias by collecting two sets of 60 half-core samples
where one set was originally assayed at ALS and the other by EA and
submitting these 120 half-core samples to a third “umpire”
laboratory.
- If testing program one does not indicate a bias between the
labs, then the bias is likely to have been introduced during the
sampling of the core in the core yard.
- Both programs will run concurrently to limit further delays and
the results are expected in approximately eight weeks’ time. The
time line for completion of this work will depend on turnaround
times at the assay labs, so there may be some variability in this
time line. The Company and RSC are putting all their efforts into
getting this program completed as soon as possible.
- In the event that the test work determines that a bias was
introduced in the sampling process, the remaining half-core samples
still held by the Company will be sent for assay and a weighted
average of the two half-core samples will then be used to determine
an updated assay.
- Recognizing the nuggety nature of gold mineralization at
Queensway, for the last several months New Found has been
considering implementing assaying of whole-core samples. This
approach provides a larger sample for assay which reduces
variability of assay results particularly helpful in nuggety gold
systems such as at Queensway and removes the possibility of bias
from the half-core sampling process. After consultation with RSC,
the Company has decided to immediately move to whole-core assay as
the primary method for future assaying of drill core
intervals.
- As part of the implementation of whole-core assaying, the
Company is in advanced discussions with MSALABS to implement the
state-of-the art Chrysos PhotonAssayTM method on whole-core samples
from Queensway. This method is employed around the world by other
companies on nuggety gold ores with excellent results.
- The Company anticipates signing an agreement with MSALABS
shortly for approximately 20,000 Chrysos PhotonAssayTM assays per
month at a facility outside of Newfoundland and is advancing
discussions towards installing a Chrysos PhotonAssayTM instrument
in Gander. As part of this arrangement the Company would work with
MSALABS to establish a sample preparation facility in Gander.
- The benefits of utilizing the Chrysos PhotonAssayTM method on
whole-core samples include:
- The preservation of the entire whole-core sample in this
non-destructive testing method leaving it available for additional
assay and test work. The current fire assay technique followed by
metallic screening for high-grade samples does not preserve
residual material for further check assaying.
- A much faster turnaround time for assay results, providing this
critical operational information that drives optimization
throughout the exploration and discovery value chain.
- Significantly lower assay costs.
- An environmentally friendly, chemical-free, more sustainable
replacement for the traditional fire assay methods, significantly
reducing CO2 emissions and hazardous waste.
Collin Kettell Executive Chairman of New Found stated:
“Management and the Board of Directors are committed to working
with RSC to complete a speedy and thorough test program to assess
the presence and source of this bias, as well as determine and
implement a resolution that will address this issue. Queensway is a
nuggety gold system which comes with significant challenges that
are widely recognized in the sampling and assaying processes.
Moving to whole-core assaying will reduce the variability of assay
results in this style of gold mineralization and will remove the
possibility of bias from the half-core sampling process. As part of
this transition, we are particularly excited to be advancing
towards the use of the Chrysos PhotonAssayTM assay method. This
technology allows the assay of an entire high-grade interval
quickly and accurately and preserves the full sample for further
verification assaying by conventional fire assay/metallic screening
methods. The Chrysos PhotonAssayTM assay method is gaining wide
acceptance and is being used by industry leaders such as Barrick.
We are excited to be forming this partnership with MSALABS to
proceed towards utilization of the Chrysos PhotonAssayTM method on
our Queensway samples, and to work towards installation of a third
party operated Chrysos PhotonAssayTM machine in Gander.”
Qualified Person
The technical content disclosed in this press release was
reviewed and approved by Greg Matheson, P. Geo., Chief Operating
Officer, and a Qualified Person as defined under National
Instrument 43-101. Mr. Matheson consents to the publication of this
news release dated November 4, 2021, by New Found. Mr. Matheson
certifies that this news release fairly and accurately represents
the information for which he is responsible.
About New Found Gold Corp.
New Found holds a 100% interest in the Queensway Project,
located 15km west of Gander, Newfoundland, and just 18km from
Gander International Airport. The project is intersected by the
Trans-Canada Highway and has logging roads crosscutting the
project, high voltage electric power lines running through the
project area, and easy access to a highly skilled workforce. The
Company is currently undertaking a 400,000m drill program at
Queensway. The Company is well funded for this program with a
current working capital balance of approximately $103 million,
which is anticipated to increase to approximately $148 million on
closing of the recently announced financing by Eric Sprott (note
that this additional financing is subject to the satisfaction of
customary closing conditions, including the approval of the TSX
Venture Exchange (the “TSXV”) and approval by the shareholders of
the Company if required by the TSXV).
Please see the Company’s website at www.newfoundgold.ca and the
Company’s SEDAR profile at www.sedar.com.
Acknowledgements
New Found acknowledges the financial support of the Junior
Exploration Assistance Program, Department of Natural Resources,
Government of Newfoundland and Labrador.
Contact
To contact the Company, please visit the Company’s website,
www.newfoundgold.ca and make your request through our investor
inquiry form. Our management has a pledge to be in touch with any
investor inquiries within 24 hours.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking Statement Cautions
This press release contains certain "forward-looking statements"
within the meaning of Canadian securities legislation and the U.S.
Private Securities Litigation Reform Act of 1995, relating to assay
results, exploration and drilling on the Company’s Queensway gold
project in Newfoundland, interpretation of the assay results and
the results of the drilling program, the discovery of zones of
high-grade gold mineralization, follow-up step-out drilling and
funding of the drilling program, the timing of the work to assess
the presence and source of bias, the execution of an agreement with
MSALABS, and the benefits of the Chrysos PhotonAssayTM assay
method. Although the Company believes that such statements are
reasonable, it can give no assurance that such expectations will
prove to be correct. Forward-looking statements are statements that
are not historical facts; they are generally, but not always,
identified by the words "expects," "plans," "anticipates,"
"believes," "intends," "estimates," "projects," "aims," “suggests,”
"potential," "goal," "objective," "prospective," “possibly,” and
similar expressions, or that events or conditions "will," "would,"
"may," "can," "could" or "should" occur, or are those statements,
which, by their nature, refer to future events. The Company
cautions that forward-looking statements are based on the beliefs,
estimates and opinions of the Company's management on the date the
statements are made, and they involve a number of risks and
uncertainties. Consequently, there can be no assurances that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Except to the extent required by applicable securities
laws and the policies of the TSX Venture Exchange, the Company
undertakes no obligation to update these forward-looking statements
if management's beliefs, estimates or opinions, or other factors,
should change. Factors that could cause future results to differ
materially from those anticipated in these forward-looking
statements include risks associated with possible accidents and
other risks associated with mineral exploration operations, the
risk that the Company will encounter unanticipated geological
factors, risks associated with the interpretation of assay results
and the drilling program, the possibility that the Company may not
be able to secure permitting and other governmental clearances
necessary to carry out the Company's exploration plans, the risk
that the Company will not be able to raise sufficient funds to
carry out its business plans, and the risk of political
uncertainties and regulatory or legal changes that might interfere
with the Company's business and prospects. The reader is urged to
refer to the Company's Annual Information Form and Management’s
discussion and Analysis, publicly available through the Canadian
Securities Administrators' System for Electronic Document Analysis
and Retrieval (SEDAR) at www.sedar.com and on EDGAR at www.sec.gov
for a more complete discussion of such risk factors and their
potential effects.
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version on businesswire.com: https://www.businesswire.com/news/home/20211104006414/en/
New Found Gold Corp. Per: "Craig Roberts" Craig Roberts,
P.Eng., Chief Executive Officer Email: croberts@newfoundgold.ca
Phone: +1 (910) 406-2407
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