By Jamie Hyland | MiningIR
Revised economics
New Found Gold Corp. (TSX/NYSE-A: NFGC) has released a revised Preliminary Economic Assessment (PEA) and updated mineral resource estimate for its 100%-owned Queensway Gold Project in central Newfoundland and Labrador. The study, announced October 22, 2026, puts the project’s after-tax net present value at $1.728 billion at a base-case gold price of US$3,600 per ounce, more than double the previous study. The after-tax internal rate of return is 126%, with payback in under one year at the base-case price.
At an upside gold price of US$4,100 per ounce, the after-tax NPV rises to $2.225 billion and the IRR to 164%. All dollar amounts in the study are in Canadian dollars unless otherwise stated. The company says cumulative after-tax cash flow over the 15-year mine life would total $2.551 billion, including $836 million from Phase 1.
Bigger resource, led by Dropkick
The updated resource estimate lifts Measured and Indicated resources by 38%, or 528,000 ounces, to 1.920 million ounces of gold at 2.19 grams per tonne (27.325 million tonnes). Inferred resources remain at 606,000 ounces at 1.51 grams per tonne.
CEO Keith Boyle credited the addition of the Dropkick Zone, a recent discovery that remains open along strike and at depth, for part of the increase. Queensway’s land package spans 110 kilometres of strike along two major fault zones, and the company says the orogenic gold system remains open to depth and along strike.
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“I am pleased to announce the results of a revised PEA and updated MRE for Queensway. Our flagship Queensway asset is uniquely attractive, with a high-grade core that starts at surface. It is located in central Newfoundland, close to infrastructure and a skilled workforce,” stated Keith Boyle, CEO of New Found Gold. “The revised PEA confirms our estimates for Phase 1 and incorporates our renewed thinking for Phases 2 and 3 of the Project. The PEA more than doubles the Project’s NPV5% to $1.7 billion and lifts the IRR to 126%, while Phase 1 capital costs remain in line with the earlier PEA at $150 million. For Phases 2 and 3, the revised approach increases underground ounces in the mine plan by 86% and includes a separate CIL circuit at the Pine Cove mill and the planned Phase 2 expansion of the Queensway mill. Collectively, these changes significantly improve onsite LOM recoveries, increase the doré poured on site and reduce smelter penalties. The revised PEA incorporates a significant amount of work completed at Queensway over the last year and a half.”
Phased path to production
Queensway is planned as a phased open-pit and underground operation producing 1.744 million ounces over 15 years, averaging 116,000 ounces per year and peaking at 190,000 ounces in 2032. Phase 1 head grade averages 13.41 grams per tonne, while the life-of-mine average is 2.09 grams per tonne. Projected recovery is 91.5%, with a cash cost of US$985 per ounce and all-in sustaining cost of US$1,375 per ounce.
Phase 1 open-pit material from the Keats and Iceberg deposits is expected to reach the company’s Pine Cove mill in the fourth quarter of 2027, after Pine Cove is converted to a gravity and carbon-in-leach circuit. Phase 2, from 2031, would use a new on-site Queensway mill, and underground mining is planned to start in 2030. Initial capital is $149.8 million, in line with the earlier study, plus $832.1 million in growth capital and $970.8 million in sustaining capital. The company reports about $167 million in cash at September 30, 2026, plus a $35 million debt facility, and says it is fully funded for initial capital, with Phase 1 cash flow expected to fund later growth capital.
What to watch
A PEA is preliminary in nature, includes Inferred resources considered too speculative to be categorized as reserves, and there is no certainty it will be realized. No mineral reserves are defined for Queensway. A technical report is due within 45 days of the announcement. Later phases will require further environmental approvals.
Source: New Found Gold Corp. news release, October 22, 2026.
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