Raises questions about New Found Gold deposit near Gander
Vancouver-based New Found Gold Corp. has been the toast of Canada’s exploration sector for reportedly striking bonanza-grade intercepts, but a short-seller report is trying to poke holes in the company’s story.
The report, released earlier this month by Iceberg Research, raises questions about the deposit’s “lack of continuity,” saying the best drill holes may be too narrow and spread too far away from one another to be economically mined.
“The deposit, explored since the 1980s, has historically been plagued by a lack of continuity: the presence of gold and grades vary widely across the deposit,” the report said. “Many comparable gold projects have failed due to this problem.”
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