Latest Drilling Intercepts From Canstar’s Neighbours Offer Significant Promise For Golden Baie

The Newfoundland gold rush remains one of Canada’s most exciting mining stories. However, many junior miners across the province have witnessed a selloff over the past quarter. Chief among those was New Found Gold (TSXV: NFG)(NYSE-A: NFGC). Following a controversial third-party audit, skepticism surrounding its Queensway drill results caused share prices to plummet, leaving a cloud hanging over the project ever since.

Considering the Queensway discovery is what kicked off this Newfoundland gold rush, it’s not surprising that other gold miners saw their shares prices fall alongside New Found Gold. However, it now seems that these doubts about Queensway and New Found Gold were largely unfounded.

New drill audits now suggest that New Found Gold’s initial bullish assay results were correct after all. Not only is this good news for the company, but it’s good news for the entire Newfoundland gold scene.

Newfoundland Gold Miners Remain Undervalued Following 2021 Assay Controversy Selloff Last fall, New Found Gold faced controversy surrounding its otherwise impressive drill results. A third-party audit of Queensway’s core results showed lower grade assays than previously released results.

The company later announced it would be re-testing some of its core samples, sending over 30 half-core samples to an Australian laboratory for re-testing.

For some investors, this discrepancy seemed to suggest that New Found Gold might have cherry-picking which samples it initial tested. Although there are other possible explanations for this discrepancy, it didn’t stop some mining investors from selling the stock at the time, a trend that spread to other Newfoundland mining stocks.

Now it seems these concerns were unjustified. New Found Gold just released new assay results that confirmed the company’s initial, more impressive results, helping put this controversy to rest once and for all.

New Found Gold’s Queensway Drill Results Came Back Positive

On February 24^th, New Found Gold announced its first batch of new results for 2022, confirming massive gold mineralization all across the project, as initially expected.

The company released results from 21 diamond holes as part of a larger 400,000m drill program, which currently has drilled over 100,000m so far. Highlights included 62.3 g/t gold over 2.0 metres at hole NFGC-21-387, as well as 71.8 g/t gold over 2.1m at hole NFGC-21-263.

All of these drill highlights were taken from the Keats zone, which is just one of multiple promising drill targets across the Queensway project.

While we’ve seen promising drill results from shallow depths, this most recent set of results going to 840m are incredibly encouraging for neighboring projects as well. Many other Newfoundland gold projects, which are still in early drilling, could have just as much mineralization potential as Queensway, especially if they are located in the same geological area.

New Found Gold’s more recent results, published on March 2^nd, also show similarly impressive results. These highlights include 125.49 g/t gold over 3.65m at hole NFGC-21-256A. As before, these results were also from the Keats zone, but included gold intercepts closer to surface including a 55.6 g/t gold intercept over 3.2m at a vertical depth of only 45m.

Recent Drill Results Suggests Canstar’s Golden Baie Could Be the Next Big Discovery

Given the success of Queensway, investors are looking for other, geologically similar projects nearby. Canstar Resources (TSXV: ROX)(OTCQB: CSRNF) Golden Baie project is another closely watched project among mining investors right now.

The company recently announced results of 11.8 g/t gold over 5.7 meters at its Kendell prospect. Highlights include 45.7 g/t gold over 1.07 meters and even 249.7 g/t gold over 0.09 meters. Other past highlights from earlier exploration include rock grab samples showing as much as 4,485 g/t gold.

It’s worth mentioning these results were from drilling just at depths of less than 50m for the most part.[1] Given Queensway has promising results up to 840m, it’s not surprising many expect similar deeper gold mineralization across Golden Baie also.

In response, Canstar has already commenced its winter drilling program, which includes drilling up to 35 new drill holes across the site. Further updates are expected later in Q2 2022, with shareholders eagerly expecting more good news.

Canstar’s Golden Baie is located just to the south of Queensway and is one of the only other gold projects that’s also located on the same tectonic boundary as Queensway.

Golden Baie has been explored by a few other companies before. This includes Westfield Minerals, which drilled 50 holes back in the 1980s. Mountain Lake Minerals also drilled another 38 holes back in 2009. Despite this, over 95% of the property still remains unexplored.

Not only is Golden Baie still mostly untouched, but Canstar’s prospecting efforts mark the first time a company is doing a thorough survey of Golden Baie using modern exploration technology. It’s one reason why management and shareholders are so optimistic going forward.

The Newfoundland Gold Rush is Alive and Well as Exciting Spring Drilling Begins

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 Labrador Gold (TSXV: LAB).

As of March 1^st, Labrador gold received a drilling permit for a fifth diamond drill project at its Kingsway project. Assay results from grab samples dating back to September saw mineralization of 128.5 g/t gold over 1.12. These results were also why Labrador Gold doubled its drill program from 50,000m to 100,000m of drilling. [2]

Sokoman Minerals Corp (TSXV: SIC) is another miner that owns seven properties in Newfoundland. The most promising of which is its Moosehead project, with recent results from the site back in January showing 100 g/t gold across 3.1m. Sokoman also announced it completed a phase 1 drilling program at the Kraken pegmatite field in the Golden Hope project.[3]

On a much smaller scale, Exploits Discovery Corp (CSE: NFLD) completed its preliminary drilling program at the Little Joanna target. Six drill holes over 921 metres were completed, with further drilling expected to resume later this year. Until then, Exploits is awaiting assay results from its 13,500 m 2021 drill program.[4]

[5]

There’s also Maritime Resources (TSXV: MAE) flagship asset, the Hammerdown Gold project. Hammerdown has already produced 143,000 ounces of gold between 2000 and 2004, although low gold prices at the time led to the mine being discontinued.

As of February, Maritime initiated a 2022 exploration program of its own, focusing on 3,000m of drilling spread across multiple surface targets. Assay results are pending for 25 drill holes during the 2021 fall season as well. [6]

K9 Gold Corp (TSXV: KNC) saw some promising results at its Stony Lake project, also in the Exploits subzone in central Newfoundland. This included continuous gold mineralization going for over 65m at 0.78 g/t gold. Results so far are looking like a potentially large tonnage, low-grade style of gold mineralization at Stony Lake.[7]

Other Newfoundland miners still expecting results include Canterra Minerals (TSXV: CTM). The company completed 19 drill holes with over 4,195 meters at its Wilding project. Results are still pending, but another 4,000m drill program at Wilding is expected to commence soon.[8]

Overall, most Newfoundland gold miners are either awaiting assay results sometime in the near future or are accelerating their existing drill programs. Results from almost every project so far have been encouraging, although only a handful of projects really stand out, like the Queensway and Golden Baie sites. Further drilling results in 2022 are expected to continue to prove why these Newfoundland projects are so promising.

[1] https://www.canstarresources.com/news/2022/canstar-intersects-11.8-g-t-gold-over-5.7-metres-at-kendell-commences-winter-drill-program/

[2] https://labradorgold.com/news-releases/labrador-gold-receives-drill-permit-for-golden-glo-4090/

[3] https://sokomanmineralscorp.com/2022/01/20/sokomans-barge-drilling-program-delivers-strong-au-results-moosehead-project-central-newfoundland/

[4] https://exploitsdiscovery.com/exploits-completes-little-joanna-drilling-and-2022-exploration-program-update/

[5] https://exploitsdiscovery.com/

[6] https://www.maritimeresourcescorp.com/news-releases/2022/maritime-resources-initiates-2022-exploration-drilling-program/

[7] https://www.k9goldcorp.com/news/2022-news/113-9ntersects65mofontinuousoldineralizationandx20220223.html

[8] https://canterraminerals.com/news-releases/canterra-minerals-provides-exploration-and-drilling-status-update/

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