ZULEIKA (Au-Ag (Ni)), Newfoundland

The Property consists of 6 mineral licenses covering approximately 123 square kilometres 30 km west of Clarenville in east-central Newfoundland. The property is accessed by helicopter, only a ten minute flight from Clarenville.

Zuleika is located near the contact of the Avalon and Gander geological terranes. The property is centred on a major fault splay off the Dover-Hermitage Bay Fault Zone (DHBF), one of several suture and deformation zones than run from the North American seaboard through Ireland and into Scotland and England. The DHBF is exactly parallel to the Dog Bay Line (DBL) on which New Found Gold’s Queensway Project is located.

The project was staked to follow up on a series of gold anomalous till samples along a structural corridor over a 6 kilometre strike-length that trends in a north-south directions. The till samples were previously collected by the Geological Survey Division of Newfoundland and Labrador. The most anomalous till sample assayed 142 ppb gold. This is eighth highest gold in till assay from nearly 10,000 till samples collected across Newfoundland by previous government till sample programs.

Epithermal textures have been found including the presence of rhodochrosite, bladed calcite and what appears to be acanthite (silver sulphide). However, prospecting and reconnaissance has located one outcrop approximately 6 meters wide of strongly sheared quartz vein containing chalcopyrite, pyrite, galena and other unidentified grey sulphides which is more suggestive of structurally controlled orogenic gold. Deformation corridors are quite prominent within the property.

In addition, the property covers another government till sample that is extremely anomalous in nickel with an assay value of 1,100 ppm. Several other till samples down ice from the property are also anomalous in nickel. Although the geological terrain is not typical for magmatic nickel deposits they can occur in such terrains. The importance of this nickel anomaly became more significant with the discovery of gabbroic dykes on the property by the prospectors, which were previously unknown.