In recent years, Newfoundland has witnessed one of the biggest gold rushes of the 21st century. Following the highly impressive drilling results of‘s Queensway Project, we’ve seen a wave of new prospecting activity all across the province. This includes companies like ( ), whose newly discovered gold deposit could become the next big discovery due to its geological similarities with the Queensway project.
In the past, geologists largely dismissed Newfoundland as a lackluster province in terms of mining potential. However, we’ve seen a complete turnaround, especially following the Queensway discovery. Experts now say that the geology of central Newfoundland is comparable to the Goldfields region of Victoria, Australia, one of the most prolific gold mining regions in the world.
As of December 2021, over 30 mining companies are operating in Newfoundland. Analysts and shareholders are now paying close attention to a variety of companies expected to report their early drillings results in the coming weeks.
How The Newfoundland Gold Rush First Started
As many mining investors now know, Newfoundland’s first major gold breakthrough was at the Queensway Project back in early 2020. Its owner,, reported early drilling results of over 92.9 g/t of gold over 19 meters. Geologists now believe that, thanks to this Queensway discovery, that there’s a very high likelihood that there are several similar-sized deposits across the province.
The news was enough to help sendsoaring. After going public in August 2020 at $1.3 per share for a market cap of $27.3 million, the company shot up to over a billion-dollar valuation. The company has since announced further drilling results at Queensway and neighboring drill targets known as Keats, Lotto, and Knob.
While companies are drilling all across the province, geologists are most excited about a 240km area known as the Exploits Subzone (EsZ), located within a larger area called the Dunnage zone. It’s a region that stretches across the central portion of the province from NE to SW, as you can see below.
That’s not to say there aren’t promising gold projects outside this area, but the Dunnage Zone is considered the most promising region for future gold discoveries in Newfoundland.
IsNewfoundland’s Next Big Gold Breakthrough?
Of all the gold projects currently being drilled, there is one that bears a striking resemblance to‘s 2020 Queensway gold breakthrough. That’s the Golden Baie project in southern Newfoundland, which is owned by .
Backed by billionaire investor Eric Sprott, Canstar is awaiting further drilling results that could confirm suspicions of a major gold deposit in the area. These suspicions are partially due to geography, as the Golden Baie and Queensway projects are both located on the same tectonic boundary, just a short drive from each other.
Exploration at the Golden Baie property has been done by a few other companies in the past. Westfield Minerals drilled around 50 holes back in the 1980s, while Mountain Lake Minerals drilled another 38 holes between 2009 and 2011. However, 95% of the property still remains unexplored. Canstar’s prospecting efforts mark the first time any company is doing a thorough survey using modern geophysics and geochemistry.
So far, the company has announced assay results from fourteen holes, while another 48 drill hole results are still pending. Highlights of recent drilling activity include 9.6 g/t gold over 7.8m, and 9.7 g/t over 3.8m.
However, Canstar has seen samples as high as 4,485 g/t in rock samples and recently announced a new boulder discovery grading 189 g/t Au.
’ management expects to announce further drilling results into early 2022 and will be actively exploring in 2022, having recently raised over $5 million. Other Newfoundland projects owned by include the Buchans-Mary project, one of the world’s largest volcanogenic massive sulfide (VMS) deposits, rich in copper, lead, and zinc.
New Drilling Results from Newfoundland Gold Miners Remain Highly Promising
Towards the northern end of the province but still within the Dunnage Zone, you have the Kingsway Gold Project, located in the Gander area of Newfoundland. Kingsway is owned and operated by( ).
So far,has increased its 20,000m drilling program to over 50,000m thanks to promising early drilling results. Back in September, the company announced gold concentrations as high as 128.5 g/t over 1.12 meters at its drill sites. Further results are expected sometime in early 2022.
Another company in the adjacent region isCorp ( ), which owns seven properties in Newfoundland. Once worth just $5 million back in 2018, Sokoman has since grown to over a $64 million valuation as of December 2021. The main catalysts for this surge have been positive drill results at the Moosehead gold project.
Back in September, Sokoman announced gold drilling results of 44.96 g/t over 11.9 m, 18.60 g/t over 4.70 m, 207.1 g/t over 1.05 m, and 42.36 g/t over 2.28 m. More recently, the company even announced adiscovery at the Grey River gold project, with results at 37.64 g/t of gold based on assays for six of 13 core samples.
While the total size of the project is still unconfirmed, surrounding gold projects range from roughly 100,000 estimated ounces to over a million ounces of mineralized gold.
Exploits Discovery Corp () announced drill permits for five target areas in Newfoundland. The most prominent of which is its Johnathan’s Pond location, where 21 drill holes have been made. Phase 1 exploration results are still pending at Johnathan’s Pond, but Exploit has already started a phase 2 drilling with six holes at its Schooner North site and ten holes at the Schooner south location. Float samples have shown concentrations of up to 700 g/t of gold.
There’s also( ) flagship asset, the Hammerdown Gold project, where the company is currently in the midst of a 40,000 m exploration program. Hammerdown already produced more than 143,000 ounces of gold back between 2000 and 2004 when prices were at $325/oz. However, operations were halted at the time due to low gold prices, which made the mine unprofitable back then.