Calibre Mining’s recently announced acquisition of Marathon Gold Corp (TSX:MOZ) has the potential to reignite investor interest in Newfoundland gold companies.
Marathon Gold’s Valentine gold project in the province boasts a 2.7-million-ounce gold reserve plus 3.96 million ounces in the Measured & Indicated category and 1.10 million ounces of Inferred mineral resources.
The company is also expected to pour its first gold bar at Valentine during the first quarter of 2025, with estimated annual production of 195,000 gold ounces over the first 12 years at all-in-sustaining costs of about US$1,007 per ounce.
Marathon’s success follows several high-grade gold intercepts from New Found Gold Corp’s Queensway project, including "near surface" assay results in 2023 from its newly discovered ‘Jackpot Zone’ that included 95.7 grams per tonne (g/t) gold over 3.25 metres (m) beginning at a vertical depth of just 20m.
Encouraging drill results from New Found Gold has propelled the gold junior’s market cap to the C$1 billion level and the Canadian company should be considered a top takeover target.
New Found Gold and Marathon Gold’s momentum should also provide a boost to other Newfoundland-based resource companies with projects in the vicinity, such as TRU Precious Metals Corp. (TSX-V:TRU, OTCQB:TRUIF)
The company’s Golden Rose Project is located close to, and on strike with, Marathon’s Valentine project and TRU holds one of only three dominant land packages in the province, including primarily gold-copper targets, along the prominent deposit-bearing Cape Ray–Valentine Lake Shear Zone.
The company called recent grab sample results from little-explored areas on its property “encouraging,” with assays yielding grades as rich as 7.3% copper and 54.4 g/t gold.
Other notable results include 57.6 g/t gold over 2.5m from the Northcott Gold Zone, which the company believes is potentially part of a larger scale, gold endowed structural corridor.
Marvel Discovery Corp is another resource junior with multiple projects in Newfoundland, including the Victoria Lake Gold project, which is contiguous with the Valentine Lake deposit.
As well, the company’s Slip project lies within a similar structural setting as the Queensway project, with exploration having uncovered surface mineralization with grab samples as high as 44.5 g/t gold.
Marvel has also teamed up with Falcon Gold Corp (TSX-V:FG, OTC:FGLDF) on their Golden Brook joint venture (JV), which includes the Hope Brook property that covers extensions of, or is proximal to, two major structures linked to several significant gold prospects (Cape Ray; Matador Mining) and deposits (Hope Brook; First Mining) and hosts the past-producing Hope Brook Gold mine.
Falcon Gold also owns the Valentine Gold South project in Newfoundland, 15,300 hectares contiguous to properties owned by Marvel Discovery, Matador Mining, and TRU Precious Metals.
As well, Great Atlantic Resources Corp (TSX-V:GR) also shows promise with a 16,525-hectare land package in Central Newfoundland Gold Belt.
A 2018 resource estimate of its Jaclyn Main prospect showed an Inferred resource of 119,900 gold ounce with an average grade of 10.4 g/t. The company’s objective is to build a multi-million-ounce gold resource in the province.
Also worth a look is Gander Gold Corp (CSE:GAND), one of the island's largest claimholders (2,259 square kilometres) targeting new high-grade gold discoveries with a current focus on the large Gander North and Mount Peyton projects, which flanks New Found Gold’s Queensway project, as well as the BLT (Botwood-Laurenceton-Thwart Island) project.
Gander Gold has also received significant financial support from billionaire resource investor Eric Sprott, who owns nearly 12% of the company (as of March 31, 2023) and has a strategic partnership with well-known Canadian prospector Shawn Ryan.
Thus, with investors continuing to show strong interest in precious metals, these promising Newfoundland gold companies should receive even more attention in the weeks and months ahead.
Contact Sean at sean@proactiveinvestors.com