Announcement • Jul 06
New Found Gold Corp. Provides Update on Queensway Gold Project and Pine Cove Mill
New Found Gold Corp. provided an update on the development of the Company's 100% owned flagship Queensway Gold Project and Pine Cove mill and tailings facility, located in Newfoundland and Labrador, Canada. The Honourable Chris Tibbs, Minister of Environment, Conservation and Climate Change for NL notified the Company that an Environmental Preview Report is required for the proposed Queensway Phase 1. The Minister's decision letter dated July 3, 2026, follows regulatory and public review and input of the Queensway Gold Project Environmental Registration, April 2026. The Queensway Phase 1 environmental registration was submitted by the Company to the Environmental Assessment Division of the Department of Environment and Climate Change of NL on April 30, 2026, registering for the commencement of the environmental assessment process on May 7, 2026. As per the NL legislative requirements, the Company will receive guidelines for the completion of the Environmental Preview Report within 60 days of the Letter. Once the Environmental Preview Report is submitted, it will be subject to a 35-day public review, and the Minister will provide a decision on the Environmental Preview Report within 45 days of submission. With the mill conversion permit amendment for Pine Cove received and EPCM work progressing, the Company expects to send first Queensway Phase 1 material to the mill as planned in Fourth Quarter 2027. The Company has selected its 100% owned and permitted Mill located on the Baie Verte Peninsula in Central NL for Queensway Phase 1 offsite milling. By processing mineralized material from both Hammerdown and Queensway Phase 1 at the converted and expanded Mill, the Company will benefit from the synergies of a single higher-throughput facility and access to the Company's skilled mill operators compared to using a third-party toll mill. The Company plans to convert and expand Pine Cove from the current 700 tonne per day flotation-leach-Merrill-Crowe circuit to a 1,400 tonne per day gravity-carbon-in-leach circuit. The permit amendment to convert the circuit to gravity-carbon-in-leach has been received and the permit to expand to 1,400 tonne per day will be applied for in due course. Based on recent test work by the Company, it is expected to result in increased recoveries of Hammerdown deposit feed from the design criteria of 87% to approximately 92%. The gravity-carbon-in-leach circuit is the preferred circuit for processing the high-grade coarse gold from Queensway Phase 1. Queensway Phase I engineering, procurement and construction management work that commenced in First Quarter 2026 is well underway. Detailed engineering, early works and geotechnical drilling at Pine Cove commenced in First Quarter 2026 and pre-construction activities, procurement of long-lead time items and securing of major contracts are underway with the objective of completing the Mill conversion and expansion by Fourth Quarter 2027. Phase 1 mining activities will use contractor mining, with technical oversight from the Company's operations team. The operations team is currently ramping up mining at the Hammerdown deposit on the Hammerdown Gold Project, with the goal of reaching commercial production in the second half of this year. Once this objective is achieved, the development team will incorporate the learnings and experience gained from the Hammerdown deposit construction and operations ramp-up, enabling an efficient ramp up at Queensway. Ongoing work related to Phase 1 at Queensway, including detailed engineering, procurement, infrastructure and water management planning, metallurgical test work and an updated mineral resource estimate is advancing on schedule. In addition, initial planning for the rerouting of the hydro-electric transmission lines that cross the Project is progressing on schedule with transmission line owners. Next steps include: Review the Queensway Phase 1 Environmental Preview Report guidelines and submit the Environmental Preview Report; Subject to release from the environmental assessment process, apply for early works and Project construction permits; Complete final engineering and detailed Project design, and develop detailed environmental protection and management plans, including environmental and waste management plans; Continue consultation and engagement with stakeholders and advance Good Neighbour Agreements with key stakeholders; and File an updated Technical Report in Second Half 2026, which will include an updated mineral resource estimate, Phase 1, 2 and 3 designs, capital and operating cost estimates and financial analysis. The Company will continue to assess the potential for any modifications to the current timelines for initial gold production from Queensway Phase 1 with the objective of sending first material to the Mill in Fourth Quarter 2027 and achieving Phase 1 commercial production in Second Half 2028. Queensway Phase 1 involves the development of four open pits, a waste rock storage facility, overburden storage facility, stockpiles, a modular crushing and sorting plant, and associated operational infrastructure including access and haul roads, water management facilities, and administrative and maintenance shops. Phase 1 will produce approximately 700 tonne per day of pre-concentrated product feed, which will be transported to Pine Cove, located on the Baie Verte Peninsula, for final processing. As outlined in the Queensway Preliminary Economic Assessment, Phase 1 has an initial capital cost of USD 155 million for an average annual production of 69,300 ounces of gold at an all-in sustaining cost of USD 1,282 per ounce of gold from 1,150,000 tonnes mined at an average grade of 9.64 grams of gold per tonne. Phase 1 will generate substantial employment and economic benefits in the region, including more than 200 full-time equivalent positions during construction and an estimated peak of more than 230 full-time equivalent positions during operation. New Found Gold is committed to local training, employment, and servicing opportunities and will also update its Gender, Equity, and Diversity Plan to promote an inclusive workforce. As of December 2025, there were 97 direct employees and 105 contractors associated with on-going exploration activities at the Queensway property, with 88% of employees working at New Found Gold sites residents of NL, with 61% from Central Newfoundland.
