07:25 AM EDT, 04/03/2024 (MT Newswires) -- New Found Gold Corp. ( NFGC ) reported Wednesday the results from the 2023 phase-one metallurgical testing program on drill core samples from the Queensway project in Newfoundland.

The company said the weighted average gold extraction on all 116 variability composite samples ranged from 90% to 96%.

New Found added that gold extraction across the three zones tested in phase I demonstrated similar metallurgical characteristics and achieved similar extractions from both gravity separation and carbon-in-leach method.

"These initial results of the metallurgical testing indicate excellent gold extraction from the mineralization observed at the Keats, Lotto, and Golden Joint," said Ron Hampton, New Found's chief development officer.

"In addition, this test work indicates the suitability of processing utilizing conventional gravity separation and carbon-in-leach technology," Hampton added.

New Found said it is currently conducting a phase II metallurgical testing program focused on Iceberg and Iceberg East. Testing is expected to begin in the second quarter.

The company's shares dropped 2.2% yesterday.