By Sam Boughedda
Investing.com — New Found Gold Corp (NYSE: NFGC ) stock jumped 14% after it announced the discovery of a new high-grade zone at the Keats Zone located along the Appleton Fault Zone at its Queensway Project in Newfoundland.
The Canada-based gold firm, which had an IPO last month, the area where the discovery was made remains underexplored, but several high-grade intercepts have been previously located in the zone.
The company warned that the area is 'structurally complex' and hosts several secondary high-grade gold-bearing fault zones, requiring follow-up drilling.
Exploration drilling is now testing the extent and orientation of the high-grade gold domains in the area.
"The progression of drilling at Keats including the recognition of the potential for multiple zones of high-grade gold mineralization in veining and associated structures at different orientations very closely parallels the discovery progression I observed in the high-grade discoveries at the Fosterville Mine," stated Dr. Quinton Hennigh, Director of New Found.
The Fosterville mine, located in Victoria, Australia, and owned by Kirkland Lake Gold (NYSE: KL ), is considered the highest grade (42 grams per ton), lowest cost gold mine in the world.
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