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Mining Company Discovers Bonanza-Grade Gold in Newfoundland

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Toogood Gold Corp. (TGC:TSVX) secures an option to obtain full ownership of a promising and strategically important mineral claim located at the heart of its flagship Toogood Gold Project in Newfoundland. Read why one expert thinks the project has excellent potential.

Toogood Gold Corp. (TGC:TSVX) announced it has secured an option to obtain full ownership of a promising and strategically important mineral claim known as the Stockley Kennedy property, which is located at the heart of its flagship Toogood Gold Project on New World Island in Newfoundland, Canada.

"This newly acquired ground lies within one of the strongest and most continuous arsenic-in-soil anomalies identified at the Toogood project and hosts numerous multi-ounce-per-tonne outcrop targets," said Chief Executive Officer Colin Smith said in the August 5 release. "With its favorable geology, structural complexity, and known high-grade occurrences, this block presents outstanding discovery potential. Thorough surface work has commenced to distill future drill targets, including structural and geological mapping, prospecting, and rock sampling."

The option agreement involves a total of CA$130,000 in cash and CA$200,000 in common shares, the company said.

The 375-hectare (ha) property features notable gold anomalies and three identified high-grade gold targets (Sherwood, Chimo, and Vic) with structural and lithological features that align with key mineralized trends and discoveries throughout the project, the company said in a release on August 5.

It adds about 4 kilometers of strike along the Virgin Arm fault, a significant regional structure within Newfoundland's Exploits subzone, associated with several major gold discoveries. It also contains a 2.5-kilometer-long arsenic-in-soil anomaly, a pathfinder element that shows a direct correlation to gold mineralization in property-wide soil, rock, channel, trench, and drilling samples, Toogood said.

"Bonanza grade" rock samples included 127 grams per tonne gold (g/t Au), 82.2 g/t Au, 29.5 g/t Au, and 10.0 g/t Au (outcrop) in the Chimo Zone, 67.3 g/t Au, 58.9 g/t Au, and 20.9 g/t Au in the Vic Zone, and 15.3 g/t Au in the Sherwood Zone.

One historical drill hole in the Holmer Zone intercepted 0.83 g/t Au over 12 meters, including 1.42 g/t Au over 5 meters, the company said.

Stockley Kennedy includes eight historical drill holes (one at Sherwood, two at Chimo, and five at Holmer), all of which intercepted multiple zones of gold mineralization, indicating the presence of underexplored in situ gold and potential for new discoveries, Toogood noted.

Co. Announces 2,000-Meter Drilling Campaign

In a separate release on July 28, Toogood announced it had launched a fully funded and fully authorized 2,000-meter diamond drilling initiative at Toogood.

The 2,000-meter program aims to explore extensions of the high-grade, near-surface Quinlan discovery from 2022, which revealed visible gold in 15 out of 19 drill holes, Toogood said in the release. Notable results included: 23.9 g/t Au over 3.65 meters from 4.75 meters, with a segment of 43.22 g/t Au over 1.95 meters; 18.27 g/t Au over 4.25 meters from 41.25 meters, including 70.31 g/t Au over 1.05 meters; and 9.4 g/t Au over 3.18 meters from 9.40 meters, with 22.76 g/t Au over 1.10 meters.

Moriarty called the 2022 results from Quinlan "remarkable," saying they indicate that the current drilling program holds significant potential across the district-scale property.

The Quinlan discovery identified a gold-bearing felsic dike extending over 200 meters of strike length and 120 meters down dip, with mineralization open in all directions. The 2025 drilling program will test Quinlan over a 580-meter strike length and potentially 200 meters down dip, assessing regional continuity and scale potential, the company said.

Gold mineralization at Quinlan reaches the surface, allowing for an average planned drill hole length of just 53 meters in the 2025 program, which will enable the completion of approximately 40 to 45 holes.

The proposed program will utilize HQ-diameter (63.5-millimeter) core, providing more detailed geological and structural data and yielding a larger volume of core sample for potential future metallurgical testing. It is expected to take about six weeks, with the first set of assay results anticipated by September.

"Building on the exceptional high-grade drilling discovery at Quinlan in 2022, which delivered visible gold in 15 of 19 holes with mineralization remaining open in all directions, this program is designed to aggressively step out along strike and down dip to investigate its potential," Toogood Chief Executive Officer Colin Smith said. "We are excited to work with local contractor Rock Valley, located only 60 kilometers south of the project in Gander, as we advance Quinlan into its next phase of growth. The Toogood gold project uniquely combines scale, grade, paved highway access and untapped potential in a Tier 1 jurisdiction."

Expert: Company Faces 'Exciting Journey'

In a July 30 piece about junior stocks trending upward, Bob Moriarty of 321gold.com noted the drilling campaign builds on the 2022 visible gold discovery by a previous operator.

"The drilling program is among the most unusual I've ever witnessed," Moriarty wrote. "Gold mineralization extends directly to surface, so the average planned hole depth is only 53 meters. While 2,000 meters doesn't sound substantial, it will enable 40 to 45 holes."

Moriarty called the 2022 results from Quinlan "remarkable," saying they indicate that the current drilling program holds significant potential across the district-scale property.

Toogood Gold is a relatively new company, having completed a reverse takeover just a month ago, Moriarty said. Shares are tightly held and not easily accessible. He suggested the company establish an OTCQB listing to simplify purchases for American investors.

"But the company faces an exciting journey should they manage to replicate 2022 drilling results," he wrote. "I consider the shares particularly undervalued."

The Catalyst: Strong Demand for Gold in China

Writing for Kitco News on August 6, Jim Wyckoff reported that in early U.S. trading on Wednesday, gold prices experienced a moderate decline.

The yellow metal is under pressure from profit-taking and weak long liquidation by short-term futures traders, he noted. An improved risk appetite among traders and investors in the broader market mid-week is also weighing on the safe-haven metals. December gold was recently down US$12.70 at US$3,422.00. September silver prices were last up US$0.057 at US$37.88.

In overnight news, Bloomberg reported that gold bullion stocks held in warehouses associated with the Shanghai Futures Exchange have reached a record high, indicating strong demand for gold in China. Over 36 tons of gold bars have been registered for delivery against futures contracts, with traders and banks capitalizing on a price gap between futures and physical gold.

John Reade, senior market strategist at the World Gold Council, noted, "This shows how strong gold trading demand is in China right now" due to a surge in arbitrage activity driven by high demand for futures, according to Wyckoff. Traders and banks are buying cheaper gold on the spot market and delivering it to the exchange's warehouse, where it can be used to offset futures sales, allowing them to close positions profitably, the Bloomberg report said.

streetwise book logoStreetwise Ownership Overview*

Toogood Gold Corp. (TGC:TSVX)

*Share Structure as of 8/6/2025

From a technical perspective, December gold futures bulls hold the overall near-term technical advantage, Wyckoff wrote. Their next upside price target is to close above solid resistance at the July high of US$3,509.00. Bears are aiming to push futures prices below strong technical support at US$3,300.00. Initial resistance is seen at this week's high of US$3,444.90 and then at US$3,450.00. Initial support is at this week's low of US$3,397.90 and then at US$3,350.00.

Florian Grummes told Jeremy Szafron of Kitco News on July 29 that the bigger breakout is coming, and patient investors will be rewarded.

"We're in a crack-up boom overall," said Grummes, managing director of Midas Touch Consulting, in an interview with Kitco News. "That means everything will move higher because they destroy the purchasing power of your fiat money — whether it's the euro, the dollar, or the Canadian dollar."

Ownership and Share Structure

According to the company, about 20% is owned by insiders and close associates, about 12% by institutions, and about 7% by Discovery Group. The rest is retail.

Top shareholders include Anthony Balic with 0.78%, Sam K. Wong with 0.78%, Matthew Roma with 0.78%, and the CEO Smith with 0.65%, Refinitiv reported.

Its market cap is CA$28.45 million with 77 million shares outstanding. It trades in a 52-week range of CA$0.05 and CA$0.40.


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Important Disclosures:

  1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Toogood Gold Corp.
  2. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  3. 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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