New Found Gold updates Queensway study with C$1.73 billion after-tax NPV

New Found Gold announced a revised preliminary economic assessment and updated mineral resource estimate for its 100%-owned Queensway Gold Project in Newfoundland and Labrador on October 22. Using a 5% discount rate for NPV, the base case reports after-tax NPV5 of C$1.728 billion at a gold-price assumption of US$3,600 per ounce; the corresponding model reports a 126% internal rate of return. The separate upside case at US$4,100 per ounce gives after-tax NPV5 of C$2.225 billion and an IRR of 164%.

The updated estimate raises measured and indicated gold resources by 38%, or 528,000 ounces, to 1.920 million ounces. That category totals 27.325 million tonnes grading 2.19 grams per tonne. Inferred resources remain at 606,000 ounces, comprising 12.471 million tonnes grading 1.51 g/t. The company’s release says the estimate uses a July 6, 2026 effective date and replaces its 2025 estimate.

The revised mine plan models 1.744 million ounces of gold over 15 years, with a phased combination of open-pit and underground mining. Phase 1 is planned around the company’s Pine Cove mill, with later phases incorporating an on-site Queensway mill. The PEA changes the first-phase processing site from the previously contemplated third-party Nugget Pond mill to New Found’s own Pine Cove facility and includes the Dropkick zone in the mine plan.

The study uses a phased processing plan: an initial gravity-carbon-in-leach circuit at Pine Cove, followed by construction of the Queensway mill in two stages with separate gravity-CIL and gravity-flotation circuits. The updated plan also advances underground mining from Phase 3 to Phase 2 and increases underground ounces in the mine plan by 86%, according to the company. It estimates initial capital at C$149.8 million and growth capital at C$832.1 million.

New Found said the project had C$167 million in cash and equivalents at September 30, plus a further C$35 million debt facility available subject to conditions precedent, potential warrant proceeds and cash flow from its Hammerdown operation through 2027. Those items are the company’s stated funding position; the PEA still depends on its cost, price and schedule assumptions. The plan anticipates first mineralized material reaching Pine Cove in the fourth quarter of 2027, subject to permits and development work.

The mine-plan ounces are categorized as 1% measured, 80% indicated and 19% inferred. Phase 1 production targets are based on approximately 97% measured and indicated resources and 3% inferred resources. The PEA includes inferred resources, which have lower geological confidence.