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by Stockwatch Business Reporter

New York spot gold jumped another $33.80 on Tuesday, ending the day at $3,429.50. The TSX Venture Exchange rose 3.58 points to 806.38 as the TSX gold index added another 11.90 points to 520.32. Minera Alamos Inc. (MAI) did well, adding seven cents to 47 cents on 7.93 million shares, but Avino Silver & Gold Mines Ltd. (ASM) struggled, dropping 27 cents to $4.81 on 1.48 million shares on (apparently not so) "strong production results."

Keith Boyle and Melissa Render's New Found Gold Corp. (NFG), up 15 cents to $2.39 on 1.71 million shares, is applauding its preliminary economic assessment of the Queensway project in north-central Newfoundland. The dream sheet -- and this is why they are called such -- has a promotable bottom line, an internal rate of return calculated at an eye-popping 56.3 per cent after taxes, given gold at $2,500 (U.S.) per ounce.

The study proposes a 700-tonne-per-day open-pit mine that would cost $155-million to get running. Why so low? Well, the plan calls for the company to mine its richest ore and truck it to a toll milling facility somewhere in Newfoundland. And so, the payback period for the capital investment is less than two years. But wait! There's more: The company will then spend nearly $590-million more on a two-phase expansion.

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