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Significant Gold Discoveries Reported at K2 Zone

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New Found Gold Corp. has reported gold intercepts from its K2 Zone at the Queensway project in Newfoundland and Labrador. Read on to see what some experts are saying about this gold stock.

New Found Gold Corp. (NFG:TSX.V; NFGC:NYSE.American) has recently announced a series of high-grade gold intercepts at the K2 Zone within its expansive Queensway project, situated 15km west of Gander, Newfoundland and Labrador.

The detailed results from 51 diamond drill holes highlight remarkable gold concentrations, including 17.8 grams per tonne (g/t) over 13.5 meters, 27.7 g/t over 2.7 meters, and additional significant findings. These results emanate from a drill program meticulously designed to not only extend but also enhance the definition of high-grade gold mineralization within the K2 Zone.

The K2 Zone, identified as a complex system of multiple gold-bearing structures, now has a defined mineralized footprint of 490 meters by 395 meters. Remarkably, the gold mineralization commences at surface level and has been delineated down to a depth of 250 meters, where it remains open and untested, indicating potential for further expansion both at depth and laterally. These findings underscore the prospective nature of the Appleton Fault Zone and position the K2 Zone as a central focus of New Found Gold's ongoing exploration strategy.

Why Gold?

As of today, the price of gold has reached US$2,168.10, marking a 5% increase since the start of the year.

Analysts, including a report from JP Morgan, are predicting growth through 2025, with many projecting that by the end of 2024, the price of gold could rise to US$2,328, reflecting a 12% increase from the beginning of the year. Additionally, expectations for mid-2024 suggest a gold price of approximately US$2,305, indicating a 7% increase from today's figures.


New Found Gold Corp.'s ongoing exploration activities are supported by several recent developments. In its April 17 report, the company reported that they are currently advancing a significant 650,000-meter drilling program at the Queensway project, which continues to yield promising results, including multiple high-grade gold intercepts at locations such as Honeypot, Jackpot, and Golden Joint. These results highlight the potential for further discoveries and the expansion of known gold zones.

Additionally, the strategic location of the Queensway project near key infrastructure like the Trans-Canada Highway and Gander International Airport enhances operational efficiency, potentially reducing costs and facilitating rapid project development. The use of advanced exploration techniques, including seismic data analysis, is aiding in the identification of structural anomalies, targeting deeper drilling efforts, which could lead to more efficient discovery rates and better targeting of high-grade zones.

Financially, according to the company itself, New Found Gold is well-positioned to continue its exploration efforts, supported by a robust financial base with significant cash and marketable securities. This financial stability is crucial for sustaining extensive exploration without immediate additional financing needs.

The company also benefits from the supportive regulatory environment and potential governmental backing, as evidenced by acknowledgments of financial support from the Department of Natural Resources, Government of Newfoundland and Labrador. These factors collectively serve as catalysts that may influence the future success and development of New Found Gold's exploration projects.

Expert Opinions

Bob Moriarty of has been tracking New Found Gold for two decades and regards it as a 100% grassroots discovery. He vividly recalled the company's initial drilling results, remarking, "It was a spectacular hole, which was really luck on their part. But they had done an extraordinary job of selecting the ground. It's about six or eight miles away from Gander, Newfoundland; the Canadian highway runs right through the project. Nobody knew what was there. Yet, they picked off all this wonderful ground, and they have hundreds of spectacular intercepts."

Despite the company not planning to release a Mineral Resource Estimate (MRE) at this time, Moriarty is confident in the project's significant potential, suggesting that it "is going to probably be the best story in the last 20, maybe even 50, years." He praised the team behind New Found Gold, highlighting their youthful vigor and enterprising spirit: "It's a bunch of younger guys who went out, took a chance, and hit a home run right out of the park," he said. Moriarty further emphasized the company's security as an investment, noting, "it's probably the safest company to invest in," given that it operates within Canada's robust mining sector. He added, "If you shut mining down in Canada, the whole country shuts down."

Moriarty also expressed a broader vision for the industry, fueled by New Found Gold's success: "Okay, what the market needs more than anything else is a giant homerun that everyone, not just people in the business, will recognize. I want to see something that wakes people up who have never considered investing or resource stocks before . . . the opportunity is so incredible across the board. But you have to have a leader show the potential, and I think New Found Gold is going to be the best story in 20 years, maybe 50 years. And that's why I have all the respect in the world for everyone in the company. They have done just an incredible job."

Bob Moriarty of has been tracking New Found Gold for two decades and regards it as a 100% grassroots discovery.

Technical Analyst Clive Maund has also offered a detailed analysis of New Found Gold, pinpointing the stock as currently being at an excellent "buy spot." Maund specifically noted, "New Found Gold broke out of a fine Double Bottom early this month," and after a brisk run, it experienced "a normal post-breakout reaction back to the support at the upper boundary of the base pattern and to a point above its now rising 50-day moving average." This positioning suggests an advantageous purchase point ahead of potential advances. Maund further observed that the accumulation line for the stock "has been trending quite strongly higher since late October," signaling a bullish divergence that he believes calls for a reversal. He also remarked on the dynamics between the 200-day and 50-day moving averages, stating, "The 200-day moving average is falling and still quite a long way overhead, although with the 50-day now rising, this gap is closing," which enhances the stock’s upward potential. These insights underline his positive sentiment toward New Found Gold's market position and future prospects.

In addition, experts at Roth MKM analyst Mike Niehuser analyzed New Found Gold Corp.'s progress in de-risking its Queensway Gold Project in an April 8 research note. Their report highlighted successful initial metallurgy, showing recovery rates of 90% to 96%, under the supervision of Gary Simmons, a former executive at Newmont Mining, indicating that the study adhered to the high standards of major mining operations. 

Niehuser also noted the company's continued efforts in expanding and defining new mineralized zones, particularly with the extension of the Iceberg-Iceberg East area to "Iceberg Alley." 

According to Niehuser, this development supports the potential for multiple multi-million-ounce gold open-pit mines in the Queensway North area. Additionally, advanced seismic surveys have improved the accuracy of drill targeting from surface levels to deep below, enhancing both the efficiency and efficacy of the drilling operations. The comparison to Australia's Fosterville Mine underscores the deep mineralization potential.

streetwise book logoStreetwise Ownership Overview*

New Found Gold Corp. (NFG:TSX.V; NFGC:NYSE.American)

*Share Structure as of 4/17/2024

Share and Ownership Structure

According to Reuters, 4.61% of the company is held by management and insiders. CEO Collin Kettell owns 2.71%, with 5.16 million shares. Founder and President Denis Laviolette owns 1.15%, with 2.18 million, and Investor Eric Sprott owns 1%, with 1.90 million.

42.9% is with strategic investors. Palisades Goldcorp Ltd. has 24.62%, with 46.77 million shares, Sprott Mining Inc. has 12.79%, with 24.30 million, and holding company 2176423 Ontario Ltd. has 5.48%, with 10.41 million.

3.75% is held by institutions. Van Eck Associates Corporation is the largest institutional investor, owning 2.53%, with 4.81 million shares.

The rest is in retail. 

The company has a free float of 52.19%, representing 99.13 million shares traded on the market. The stock's trading range for the 52-week period is between CA$4.09 and CA$7.60, reflecting the market’s valuation of the company’s performance and prospects.

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Important Disclosures:

  1. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  2.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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