It’s a once-in-a-lifetime gold find, says Mike Regular, the senior project geoscientist for New Found Gold. A Newfoundlander who has travelled outside the province for his career in the mining industry, Regular says drilling results to date — including the latest positive report on March 23 — point to a world-class deposit near Appleton on a scale with some of the best gold-producing fields in the world.
“I have been doing mineral exploration for over 30 years across Canada, largely for gold and this is some of the best results I have ever seen,” says Regular.
The Carlin, Nevada area, which Regular compares the find, to has been producing gold for more than 100 years.
The potential for a high-grade, lower-cost gold project has been generating significant interest within the mining industry. With samples showing results near 93 grams a tonne and gold prices hovering near historic highs, the good news from New Found Gold may usher in even more exploration activity.
“As a province, our future in mining depends on the success of exploration projects such as New Found Gold’s,” says provincial Industry, Energy and Technology Minister Andrew Parsons. “This company’s significant drill result that was announced last year of 92.9 grams per tonne of gold over 19 metres has focused the mining world’s attention on our jurisdiction, highlighting the significant geological potential of our province.”
In 2018, when Dwight Ball was premier of the province, the Liberal government introduced an industry development plan for mining entitled, “Mining the Future 2030.” In it, the Liberals outlined a plan for five new mines in the province and the sustainable direct employment of 6,200 people.
Appleton stands to become one of those towns that will benefit from the opening of new mines in the province, but the project must first complete the entirety of its exploration process.
“It requires a lot of core drilling and surveys and sampling,” says Regular. “New Found Gold’s exploration program is massive to any Newfoundland and Labrador standards and the potential is immense. The company plans on drilling 200,000 metres of core in 1,500 holes.”
Although it is still too early to establish a timeline for opening a producing goldmine in the area, Regular estimates it could take as long as 10 to 15 years. In the meantime, the massive scale of the exploration work involved is already generating skilled employment for the area.
“Just over a year ago there was maybe five or six of us working,” says Regular. “Now, there are six drill rigs turning and about 110 to 120 people directly employed as NFG employees or contractors.”
Parsons says the Newfoundland and Labrador government continues to play its role in making the province a jurisdiction where mining companies want to spend their exploration dollars.
“Newfoundland and Labrador ranked eighth globally in overall investment attraction in the latest Fraser Institute Annual Survey of Mining Companies released in February 2021,” says Parsons. “We provide publicly funded and available research undertaken by the Geological Survey of Newfoundland and Labrador that offers baseline geological information, helping to support exploration efforts by companies such as New Found Gold. We have a competitive regulatory structure and offer our Junior Exploration Assistance Program.”
For Regular, the opportunity to return to Newfoundland to work on a project that he described as in his own backyard and that could generate so much economic activity for the area is a dream come true.
“The play is gathering huge attention and bringing a well needed injection of exploration dollars into the region …,” says Regular. “Exploration is results driven. As long as good core intercepts and sample analysis are happening the exploration continues. At Queensway and the regional gold play, the potential is for multiple mines.
“Think of Kirkland Lake, Ont., or Fosterville in Australia, or Carlin, Nevada. There are multiple deposits and multiple mines.”
