Palisades Goldcorp: New Found's Queensway Report Ignites Investor Optimism

The recent technical report filing for New Found Gold Corp.’s Queensway Gold Project has sent ripples of excitement through the resource sector, positioning Palisades Goldcorp (TSXV:PALI) as a key beneficiary of this high-potential asset. With its 21.63% stake in New Found, Palisades stands to gain significantly from the project’s robust mineral resource estimates and strategic development plans. Here’s why this milestone could redefine the company’s trajectory.

The Queensway Gold Project: A Game-Changer

The March 24, 2025, Mineral Resource Estimate (MRE) for Queensway revealed a 1.39 million-ounce indicated resource grading 2.40 g/t Au and 0.61 million inferred ounces, underscoring the project’s scale. High-grade zones within the AFZ Core pit—73% of indicated ounces in just 24% of tonnage—highlight starter-pit potential, a critical factor for early-stage cash flow.

The project’s technical report, filed under NI 43-101, also emphasizes its flexibility. Multiple open-pit shells allow tailored mine planning, while in-pit tailings storage and low-cost infrastructure in Newfoundland and Labrador (a Tier 1 jurisdiction) reduce development risks. With only 5% of the 110 km strike explored, Queensway’s exploration upside is vast, offering room for expansion.

Palisades’ Strategic Positioning

Palisades’ 21.63% stake in New Found positions it to leverage Queensway’s growth. The company’s $130M+ portfolio in junior resource equities, paired with a $500,000 allocation to physical bullion (gold, silver, platinum), underscores its dual focus:
1. Preservation: Metals as a hedge against economic volatility.
2. Appreciation: Exposure to high-potential projects like Queensway.

CEO Collin Kettell emphasized, “Queensway’s resource estimate validates our thesis of backing undervalued assets with transformative potential.” The PEA, due by late Q2 2025, will further clarify Queensway’s economics, while bulk sampling in 2026 aims to validate resource continuity.

Market Reaction and Momentum

Investors have responded positively to Palisades’ strategic moves. As of April 2025, its stock rose 40.41% year-to-date, outperforming the S&P/TSX Composite’s 2.24%. This reflects confidence in:
- Portfolio strength: Queensway’s MRE and New Found’s 19% stake held by Eric Sprott (a major institutional backer).
- Liquidity improvements: A market-making agreement with ITG aims to stabilize trading, reducing volatility for retail and institutional investors.
- Share buybacks: A renewed Normal Course Issuer Bid (NCIB) allows Palisades to repurchase up to 5% of its shares, signaling undervaluation.

Risks and Considerations

While optimism is warranted, risks persist. Queensway’s success hinges on permitting timelines, commodity prices (the MRE assumes a $2,200/oz gold price), and execution of the PEA. Palisades also faces sector-wide challenges, such as geopolitical risks and capital allocation competition.

Conclusion: A Catalyst-Driven Play

Palisades Goldcorp’s Q1 2025 updates—bolstered by New Found’s Queensway report—paint a compelling picture. With 76.80% 3- and 5-year returns outperforming broader markets, the company has demonstrated resilience and strategic acumen. The Queensway project’s scalability, coupled with Palisades’ diversified portfolio and defensive bullion holdings, positions it as a high-conviction investment for gold bulls.

Key data points reinforce this outlook:
- Queensway’s indicated resource: 1.39 Moz at 2.40 g/t Au (potential starter pits at 7.16 g/t Au).
- Palisades’ YTD outperformance: +40.41% vs. +2.24% for the TSX Composite.
- Eric Sprott’s 19% stake in New Found adds credibility and institutional momentum.

As the PEA nears completion and exploration expands, Palisades is primed to capitalize on a sector ripe for discovery. For investors seeking exposure to transformative gold projects with a disciplined merchant banker, this could be the catalyst to watch.