New Found Gold Announces Preliminary Economic Assessment for the Queensway Gold Project

Core Viewpoint - New Found Gold Corp. announced the results of a Preliminary Economic Assessment (PEA) for the Queensway Gold Project, indicating potential economic viability for gold mineralization on the 175,450 hectare project [1][3][18]. Project Overview - The Queensway project is located near Gander, Newfoundland and Labrador, Canada, and is 100% owned by New Found Gold [1][19]. - The PEA outlines a phased approach to development, starting with a small high-grade open pit mine followed by a larger on-site operation [4][12]. Economic Assessment Highlights - The PEA envisions a 15-year life of mine (LOM) producing 1.5 million ounces of recoverable gold with an average head grade of 1.85 g/t Au [6][12]. - Initial capital costs for Phase 1 are estimated at $155 million, with average annual gold production of 69.3 thousand ounces (koz) at an all-in sustaining cost (AISC) of US$1,282/oz Au [7][8]. - Phase 2 requires growth capital of $442 million, expected to produce 172.2 koz Au at an AISC of US$1,090/oz Au [7][8]. Financial Metrics - At a base case gold price of US$2,500/oz, the project generates an after-tax net present value (NPV) of $743 million and an internal rate of return (IRR) of 56.3% [49]. - The after-tax NPV increases to $1.45 billion and IRR to 197% if the gold price rises to US$3,300/oz [7][49]. Production and Cost Details - Total operating costs over the LOM are projected at $1.977 billion, with a total cash cost of US$1,085/oz Au and an AISC of US$1,256/oz Au [8][44]. - The project includes a phased mine plan that allows for early revenue generation and prioritizes processing of higher-grade material [17][12]. Mineral Resource Estimate - The initial mineral resource estimate includes 18.0 million tonnes at an average gold grade of 2.40 g/t Au, containing 1.39 million ounces of gold [21][22]. - The inferred mineral resources total 10.7 million tonnes at an average grade of 1.77 g/t Au, containing 0.61 million ounces of gold [21][22]. Next Steps - The company plans to conduct a 70,000-meter drill campaign, complete environmental studies, and submit an Environmental Assessment in H1 2026 [53][56]. - Construction for Phase 1 is planned to commence in 2027, with first production targeted for Q3 2027 [56].