SKYG.v $SRKZF Stockwatch Gold Summary for Aug. 12, 2020
Gold Summary for Aug. 12, 2020
2020-08-12 17:31 ET - Market Summary
by Stockwatch Business Reporter
Collin Kettell and Craig Roberts's New Found Gold Corp. (NFG) jumped 14 cents to $1.54 on 3.94 million shares on word that it plans a two-phase, 100,000-metre drill program at its Queensway gold project in central Newfoundland. The drilling, which will churn away until the end of 2021, has a variety of goals, including a closely-spaced follow-up to a rich hit in the Keats zone last year, which produced 92.9 grams of gold per tonne over 19 metres, helped by a six-metre zone averaging 285.2 grams of gold per tonne.
The big drill plan prompted a two-alarm promotional response. Mr. Kettell, executive chairman, was first on the scene. He says that the drilling will be supported by the company's $72-million in working capital, a far cry from its days as a private company in which it managed to spend just $10-million over five years. Mr. Kettell excitedly reminded investors that the company was embarking on this major drill program to follow up on last year's rich hit at Keats.
Mr. Roberts, CEO, was subdued with his excitement. He thanked investors for their support and promised to "work hard to execute our programs with effectiveness and efficiency." He promised a steady stream of drill results over the coming year or two, then got back to giving thanks -- this time to local stakeholders and bureaucrats -- and pledged to work with them through "this next exciting phase of exploration."
New Found Gold is a newfound listing on the TSX-V, first appearing on Tuesday with considerable fanfare: The stock added 10 cents to $1.40 on 5.05 million shares on its first day, undoubtedly pleasing investors who paid $1.30 per share in the company's $27.3-million initial public offering. New Found's shareholders include Eric Sprott, who owns 18 per cent of its stock, and Rob McEwen, who holds 7 per cent. (Palisades Goldcorp is the largest shareholder, with a 33-per-cent interest.)
Mr. Sprott is hedging his bets in the area. He is also a significant investor in Michael England's Sky Gold Corp. (SKYG), which fell three cents to 15.5 cents on 2.24 million shares today on word that it has started work on the nearby Mustang and Virginia properties. The work now under way -- prospecting, mapping, sampling and trenching -- is expected to lead to a drill program this fall. With luck, Sky Gold will have some promotable drill results of its own to tout, but in the meantime, Mr. England is making hay with the rich hit at Queensway.
