New Found Gold (US:NFGC)2025-07-22 15:00Summary of New Found Gold (NFGC) Update / Briefing July 22, 2025 Company Overview - Company: New Found Gold Corp (NFGC) - Project: Queensway Gold Project located in Gander, Newfoundland and Labrador Core Points and Arguments 1. Preliminary Economic Assessment (PEA): The PEA indicates a robust operation for the community, with a phased approach to mining. Phase one involves a 700 ton per day open pit, followed by a 7,000 ton per day open pit in phase two, and underground mining in phase three [2][6][9]. 2. Production Estimates: - Phase one is expected to produce over 69,000 ounces annually at an all-in sustaining cost (AISC) of $1,282 per ounce [8]. - Phase two anticipates an average production of 172,000 ounces per year at an AISC of just under $1,100 from years five to nine [9][43]. - Total life of mine production is projected at 1,500,000 ounces [12]. 3. Net Present Value (NPV): The NPV at a gold price of $2,500 is estimated at $743 million, with a high rate of return of 56.3% and a payback period of less than two years on initial capital of $155 million [11][43]. 4. Resource Conversion: The PEA shows a conversion of 92% of indicated resources and 74% of inferred resources into the mine plan, indicating strong resource confidence [12][18]. 5. Mining Methods: The project will utilize conventional open pit mining methods and a cut-and-fill method for underground mining, with a focus on high-grade material first [10][14]. 6. Environmental Considerations: The project plans to use in-pit tailings deposition, which is considered best-in-class for risk mitigation regarding long-term environmental liabilities [20][21]. Exploration and Future Plans 1. Ongoing Exploration: The company plans to continue exploration activities in 2025, focusing on converting inferred resources to indicated and expanding the resource base along known fault zones [24][25]. 2. New Discoveries: Recent drilling has identified new mineralization not captured in the current mineral resource estimate (MRE), particularly in the Keats West area [27][28]. 3. Depth Potential: The company is exploring deeper drilling opportunities, with promising results indicating that mineralization persists at greater depths [35][36]. 4. Regional Potential: The acquisition of Labrador Gold's Kingsway project has expanded the strike length by over 13 kilometers, enhancing the potential for new discoveries [37][41]. Financial and Operational Insights 1. Capital Expenditures: Total capital expenditures for the project are estimated at $1.065 billion, with phase one requiring $155 million [43][45]. 2. Operating Costs: The operating cost for mining is projected at $4.91 per ton moved, with processing costs averaging just under $21 per ton [45][46]. 3. Leverage to Gold Price: For every $100 increase in gold price, the NPV increases by approximately $89 million, indicating significant leverage to gold price fluctuations [47]. Additional Important Information 1. Community Support: The company has received strong support from local communities and the government, which is crucial for project advancement [5][52]. 2. Permitting Timeline: The company anticipates a two-year permitting process, with construction expected to begin in early 2027 [48][49]. 3. Sustainability Focus: The project emphasizes sustainability, with ongoing assessments to ensure that tailings management does not lead to long-term environmental issues [88]. This summary encapsulates the key points from the New Found Gold briefing, highlighting the company's strategic approach, production forecasts, exploration potential, and financial metrics.