Newfoundland Discovery (CSE: NEWD, OTC: NEWDF, FRA: M4K) explores the Canadian province of Newfoundland but also Québec and Ontario. Thanks to the management’s strong experience and the properties’ potential, everything leads to say that the company is significantly undervalued. Eris Sprott and Blair Naughty saw a huge opportunity, and both own almost 10%, respectively.
Why Is Lithium Crucial For Tomorrow’s World?
You might not realize it, but lithium is already crucial for our day-to-day lives, and it will be even more in the near future. Indeed lithium is part of several technologies, including mobile phones, computers, power tools, and battery storage of energy generated from wind and solar power. Added to these, Electric Vehicles will definitely augment the need to find more lithium resources. The South American countries of Bolivia, Chile, and Argentina currently possess more than half of the estimated global lithium resources. Still, countries such as Canada could become an important lithium providers.
For the past several years, there has been a sharp increase in EV demand, which is expected to reach more than 30% of annual vehicle sales by 2030. The global lithium market, which had a value of USD 4650 million in 2021, is anticipated to expand at a CAGR of 13.5% from 2023 to 2028.
How Can Newfoundland Discovery Help To Provide Lithium?
Newfoundland Discovery (CSE: NEWD, OTC: NEWDF, FRA: M4K) is a junior exploration company focused on seeking and discovering lithium and gold. The company holds several projects in Québec, Ontario, and Newfoundland provinces. Newfoundland Discovery’s management team recently reorganized its portfolio to first generate revenue and focus on its flagship projects, the Rodger’s Cove and the Sugaree projects.
The option contracts for the Maxwell and JMW projects in the Chapais-Chibougamau Region and the Schefferville project in the Schefferville Area, Quebec, Canada, were recently terminated by Newfoundland. These conclusions were made after a thorough evaluation of each project’s potential, upside exploration potential, and compatibility with the Company’s strategic goals.
“While the Maxwell, JMW, and Schefferville projects presented interesting opportunities, our comprehensive analysis indicated that they do not align with our long-term strategic goals. We will continue to concentrate our efforts on our core projects, such as the Rodger’s Cove Gold Project and the lithium projects in the Subtico Subprovince, while also exploring new opportunities that align with our strategic objectives.”President & CEO Jeremy Prinsen
The company also 100% acquired 6,933 hectares in Ontario. The Dickison/McKnight property hosts lithium and thanks to this new asset, the company strategically augments its presence near the Sugaree project holding more than 10,000 hectares.
Rodger’s Cove Project
Located in Newfoundland, the Rodger’s Cove property covers 3,675 hectares thanks to 147 claims previously acquired. In March, the company shared with its shareholders the potential the property could deliver. Anomalies encountered comprise 40% of the samples assaying above 100 ppb Au, and the gold anomaly covers an area of approximately 600 x 800 meters.
3 main anomalies showed high-grade gold value:
- Anomaly A: high-grade gold values of up to 1,780 ppb (1.780 g/t);
- Anomaly B: historical gold occurrences and includes historical assays grading up to 14.56 g/t gold and 440 g/t silver;
- Anomaly C: highest soil sample value from Phase One, assaying 1,780 ppb Au (1.780 g/t)
The next important landmark is the advanced exploration of the targets encountered during Phase One. This phase will help to delineate and quantify mineralized zones and their structural feature.
The Sugaree project is located in Quetico Subprovince, Ontario. Strong from its 2,736 hectares, Newfoundland Discovery will have better leverage to encounter pegmatites. The area is well-known as Brunswick Exploration detains a property nearby the area, and these neighbors have already found lithium (spodumene and lepidolite). More generally, the area is famous for hosting spodumene-bearing pegmatites.
Share Structure / Financials
The latest financial statements occurred for the period ending January 31, 2023. According to the balance sheet + the private placement that occurred on February 9, Newfoundland Discovery has approximately $900k for no debt. It also has $14M in exploration and evaluation assets. The recent private placement aims to support general working capital and exploration expenditures. It also happens that the company sells some of its properties to generate cash and strengthen relationships. The latest example is when Newfoundland Discovery sold two lithium projects for $775k to Australian partners.
As of March 17, the share structure consisted of 91.4M shares issued and outstanding, 6.9M warrants, and 1.5M options. The stock price, unlikely several junior exploration companies, returned a positive ROI year-over-year. Currently worth $0.08, the stock price fluctuated between $0.03 to $0.25.
What You Should Remember About Newfoundland Discovery (CSE: NEWD, OTC: NEWDF, FRA: M4K)
- The company holds several projects located in Québec, Ontario, and Newfoundland;
- Newfoundland Discovery actively seeks lithium and add projects that are lithium-related;
- Eris Sprott and Blair Naughty are invested in the company and own 10% respectively;
- The management team is experienced and makes sure to focus on the Rodger’s Cove and Sugaree projects;
- The Rodger’s Cove project showed several anomalies with high-grade gold.