en.Wedoany.com Reported - New Found Gold CEO Keith Boyle recently discussed the company's transition from a gold explorer to a producer. The company operates two gold projects in Newfoundland and Labrador, Canada: Queensway and Hammerdown. Hammerdown is nearing commercial production, while the first phase of Queensway plans to utilize existing processing facilities to shorten the timeline to production.

Queensway is the company's flagship asset, covering 220,000 hectares, with resources compliant with NI 43-101 standards: 1.39 million ounces indicated (grade 2.40 g/t) and 608,000 ounces inferred (grade 1.77 g/t). According to a 2025 preliminary economic assessment, the initial capital cost for the project's first phase is $155 million CAD. The first ore is targeted to arrive at the mill in Q4 2027, with commercial production scheduled for 2028.

The Hammerdown project is approaching commercial production, defined by the company as the Pine Cove mill consistently processing 700 tonnes per day with stable grades from the open pit. As of Q2 2026, the project has assembled a team of 264 people, including 76 direct employees and 188 contractors, over 90% of whom are from local commuting communities. Under steady-state conditions, Hammerdown is expected to produce 20,000 to 25,000 ounces annually, with all-in sustaining costs of approximately $2,500 per ounce and annual free cash flow of $40 to $50 million USD. Boyle stated that commercial production is expected in the second half of 2026.

The core of the company's development strategy lies in operational sharing. As part of the Phase 1 capital plan, the Pine Cove mill is being expanded to double its processing capacity to directly handle Queensway ore, avoiding the need for a new standalone processing facility. Additionally, the grade control program, reconciliation protocols, and operating systems established at Hammerdown will be directly transferred to Queensway. Mine General Manager Mark Ross has been appointed to oversee operations at both projects, with Chief Operating Officer Robert Assabgui managing overall operations.

In April 2026, the company completed a $220 million CAD financing package, including a $105 million CAD senior secured credit facility with EdgePoint Investment Group and an equity financing via a bought deal. As of May 2026, the company held $148 million CAD in cash and marketable securities, with additional undrawn credit capacity. The revised Phase 1 capital requirements remain within the PEA model range, and existing funds are sufficient to support construction.

Financial projections indicate that the first two years of Queensway Phase 1 will process high-grade ore grading 12 to 12.5 g/t, targeting an annual production of approximately 100,000 ounces, with all-in sustaining costs of around $1,300 per ounce. At current gold prices, this phase is expected to generate approximately $300 million USD in free cash flow to fund Phase 2 expansion, which involves building a 7,000-tonne-per-day on-site mill at Queensway, with growth capital costs estimated at $442 million CAD. The PEA base case analysis (at $2,500 per ounce gold) shows a project after-tax net present value (discounted at 5%) of $743 million CAD, an internal rate of return of 56%, and a payback period of less than two years. Phase 2 is expected to support average annual production of approximately 172,000 ounces at Queensway from years five to nine, with all-in sustaining costs of around $1,090 per ounce.

Exploration work is progressing in parallel with development. The 2026 drilling program is planned at 90,000 meters, utilizing six rigs, testing multiple targets within the Queensway property. The property covers 110 kilometers of strike length along the Appleton Fault Zone and JBP Fault Zone, with historical discovery costs below $100 per ounce. Key exploration targets include extensions of the AFZ core zone, the Dropkick zone located 11 kilometers along strike (which has yielded results such as 42.79 g/t gold over 14.95 meters, not yet included in current resources), as well as areas like Gazebo South and Pauls Pond. An updated mineral resource estimate including Dropkick is expected in the second half of 2026.

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