11:54 AM EDT, 03/25/2025 (MT Newswires) -- (Adds comment and updates shares.)

New Found Gold ( NFGC ) was last seen down 31% after it late on Monday released an initial mineral resource estimate for its Queensway gold project in Newfoundland and Labrador.

Indicated mineral resource is 18-million tonnes grading 2.40 grams per tonne of gold, for 1.39 million ounces.

Inferred mineral resource is 10.7-million tonnes grading 1.77 g/t gold, for 0.61-million ounces.

Around 73% of the ounces are contained in 24% of the tonnage in the indicated category within the mineral resource pit shells.

The initial mineral resource estimate sits within a less than 5% portion of the 110-kilometer long strike extent of the two major structures controlling gold mineralization, where numerous additional gold targets have been identified.

Recently announced high-grade gold intersections beyond the initial mineral resource estimate footprint demonstrates that gold mineralization remains open for expansion both along strike and at depth.

Once additional metallurgical test work is completed, a preliminary economic assessment will be released in late second quarter.

National Bank of Canada reiterated its outperform rating and $8.00 price target following the update.

The bank said it expects the stock to materially underperform its peers today due to the relatively small size and lower grade than was implied by the company's extensive high-grade drilling activity in recent years.

The bank expects to revise New Found's valuation and target price to a lower range in a subsequent note.

New Found's shares were last seen down $0.69 to $1.56 on the TSX Venture Exchange.

Price: 1.59, Change: -0.66, Percent Change: -29.33