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New Found Gold surges on higher grade discovery in Newfoundland

New Found Gold (NYSE:NFGC) +13.7% in Monday's trading after testing confirmed higher gold grades at its 100%-owned Queensway site in Newfoundland.

The Canadian miner said the tests were conducted as part of a program designed to follow up on newly discovered high-grade gold at the Keats West area located west of the highly prospective Appleton Fault Zone.

"Keats West is turning into a zone of special interest for New Found," New Found (NFGC) COO Greg Matheson said. "We have now seen gold grades from low through to high, both over impressive widths, indicating the presence of a strong gold mineralizing system."

Exploration drilling is ongoing at the site, with two drills currently working to expand and define the new discovery, the company said.

New Found Gold's (NFGC) "very high grade discovery" in Newfoundland is "looking very large with no end in sight yet to this vein system," Ron Struthers writes in an analysis posted earlier this year on Seeking Alpha.