New Found Gold - Phase One Production in 2027

• Phased development approach delivers Phase One Production by 2027 with 700 TPD toll milling operation requiring only $155M initial capex 
• 197% IRR and $1.45B NPV at current $3,300 gold prices, with less than 2-year payback period 
• Newfoundland and Labrador jurisdiction consistently ranks top 10 globally, with strong government support targeting five mines by 2030 
• New leadership team with 40+ years mining experience and proven track record in narrow-vein gold systems 
• Only 5km of 110km strike length explored, with high-grade discoveries at Dropkick showing camp-scale potential

Introduction to New Found Gold & the Queensway Project

New Found Gold Corp. presents a compelling investment opportunity in the Canadian gold sector through its flagship Queensway Gold Project in Newfoundland and Labrador. Under the leadership of CEO Keith Boyle, the company has developed a strategic phased approach to bring this high-grade gold project into production rapidly while minimizing shareholder dilution.

The Queensway project represents what could become "a new camp in the area," according to CEO Keith Boyle, spanning an impressive 110-kilometer property package along two major fault zones. The project's preliminary economic assessment (PEA) reveals a deposit with exceptional leverage to gold prices and a clear path to production within three years.

What sets New Found Gold apart is its strategic approach to development. Rather than pursuing a traditional large-scale development requiring massive upfront capital, the company has designed a three-phase plan that uses initial cash flows to fund subsequent phases, creating a self-funding growth model that protects shareholders from excessive dilution.

AKQA with Chief Executive Officer, Keith Boyle

Management Changes & Team Expertise

A significant catalyst for New Found Gold has been the comprehensive management overhaul implemented in 2025. The transformation brought in seasoned mining professionals with decades of experience in gold operations, particularly in narrow-vein systems similar to Queensway.

"In the new year, we changed management, both at the board level and at the senior leadership levels."

The new board includes Chairman Paul Huet, who brings "a wealth of experience over 37 years in the mining business, most recently with Karora in Australia and Klondex."

CEO Keith Boyle himself represents a key asset, bringing "40-year mining engineer" experience with "more than half of it in narrow vein gold or gold systems in the Abitibi and Timmins camps." This specific expertise in narrow-vein systems is crucial for the Queensway project's success.

The technical team includes Melissa Render, promoted from VP Exploration to President after discovering the deposit, and Rob Assabgui as Study Manager, who previously served as "vice president of the Manitoba Division for HudBay that brought the Lawlor deposit into production." This combination of discovery expertise and production experience creates a formidable technical foundation.

Notably, "five of the six are new on the board," indicating a complete strategic refresh aimed at advancing the project toward production. The management changes signal a shift from exploration-focused leadership to a development and production-oriented team.

Capital Structure & Institutional Support

New Found Gold's capital structure reflects strong institutional confidence and strategic investor backing. The company maintains 230 million shares outstanding following a successful $63 million financing that attracted significant institutional participation.

The shareholder base demonstrates quality and commitment, with Eric Sprott holding 19% and Palisades at 19%. Perhaps most significantly, institutional ownership increased from "less than 1% basically" to 14%, indicating growing professional investor confidence in the project.

Highlighting the market's recognition of Queensway's potential, Boyle noted:

"Really liked the story and with lots of demand and so we were quite excited to have such strong support from the institutions." 

An additional $20 million private placement led by Eric Sprott was announced for August 2024, requiring shareholder approval as it takes Sprott's ownership above 20%. This continued investment from sophisticated mining investors like Sprott provides both financial resources and strategic validation.

The company trades on both the TSX Venture Exchange and New York Stock Exchange, providing liquidity for both Canadian and American investors. Coverage by five research analysts ensures ongoing market attention and analysis.

Preliminary Economic Assessment Highlights

The Queensway project's economics demonstrate exceptional returns, particularly at current gold prices. The PEA reveals a project with remarkable leverage to gold price movements and outstanding capital efficiency.

At the base case $2,500 gold price, the project delivers an NPV of $743 million with a 56.3% after-tax IRR and less than two-year payback. However, at current gold prices around $3,300, the economics become truly exceptional: 

"You're looking at $1.45 billion NPV and 197% IRR."

The phased development approach minimizes initial capital requirements while maximizing returns. Phase One requires only $155 million in initial capital to achieve production of "just over 69,000 ounces per year" through toll milling. This low initial investment creates an attractive risk-adjusted return profile.

"For basically every $100 increase in gold above the $2,500 gold price, we get $89 million increase in NPV, but the IRR really stands out as getting much, much better.”

The life-of-mine economics are equally compelling, with 1.5 million ounces produced over 15 years at an all-in sustaining cost of $1,256 per ounce. Once the full operation is established in years 5-9, annual production reaches "just over 170,000 ounces per year" at "just under $1,100 an ounce."

Resource Conversion & Mining Plan

The Queensway deposit benefits from exceptional resource confidence, with over 75% of ounces in the indicated category. This high confidence level stems from extensive drilling programs that have systematically upgraded resources from inferred to indicated status.

"We had a really high conversion, in particular with the indicated category where you've got 92% of the core in the open pit was converted. For the inferred, 85% of that in the core area was converted.”

The deposit's unique characteristic is its high-grade core, where "75% of those ounces are in 25% of the tons" and this "high-grade core comes right to surface." This concentration of high-grade material enables the phased development approach by providing immediate access to the best ore.

The mining plan encompasses both open pit and underground operations across multiple vein clusters. The main pits extend approximately two kilometers, representing "substantial deposits" despite their narrow-vein nature. Five underground ramp systems will access mineralization below the pits, all at relatively shallow depths of less than 500 meters.

Current drilling programs focus on infill drilling to upgrade resources and definition drilling to optimize mining. A 70,000-meter drill program is "upgrading the resources from inferred to indicated within the open pit outlines" while "identifying new targets to grow the resource."

Processing Methods & Recovery Rates

The Queensway project's metallurgy presents both opportunities and challenges, with the processing approach designed to maximize recovery while managing costs. The deposit contains two distinct types of mineralization requiring different treatment methods.

"We really have, I call it two types of mineralization that we're treating," Boyle explained. The simpler material allows for "crush, grind, gravity and leach," while lower-grade materials contain "a refractory component" requiring flotation for optimal recovery.

The overall recovery rate across both phases is projected at 92%, with "48% of the gold will report to dore, in other words straight leaching, and 44% of the gold will be reporting to concentrate" for sale to smelters.

For Phase One toll milling, the operation will process only the direct-leach material, achieving the same 92% recovery through "just a straight gravity and then leach process" without the complexity of flotation. This approach minimizes initial processing costs and complexity.

When the on-site plant is constructed in Phase Two, it will include flotation capability to process both ore types. This flexibility allows the operation to maximize recovery across the entire ore body while maintaining operational efficiency.

Project Location & Infrastructure

New Found Gold's location in Newfoundland and Labrador provides significant competitive advantages through established infrastructure and supportive government policies. The jurisdiction "consistently ranks in the top 10 of jurisdictions" according to the Fraser Institute, providing regulatory certainty and investor confidence.

The project sits strategically "15 kilometres outside the town of Gander" with exceptional infrastructure access. 

"We've got the Trans-Canada Highway that goes right through the property. We've got the renewable power that goes right through the property. And we've got a proximity to deep shipping ports."

The local workforce advantage cannot be overstated, with "a population of over 40,000 people within an hour of the project" providing access to skilled mining personnel. Gander's international airport facilitates personnel transport and equipment delivery.

Government support has been exceptional, with officials helping to "tighten those timelines around permitting." The province has stated ambitious goals, with the "Government stating they want five mines by 2030 and you know what? We're gonna be one of them."

The regional mining activity provides additional infrastructure and service advantages. Neighboring operations include Equinox Gold's Valentine Project entering production, Maritime's Hammerdown mine, and several other advancing projects, creating a supportive mining ecosystem.

Exploration Potential & Drilling Results

Beyond the current resource, New Found Gold's exploration potential represents perhaps the most compelling long-term value driver. With only 5 kilometers of the 110-kilometer property explored, the upside potential appears substantial.

Recent drilling at Dropkick, located 11 kilometers north of the main resource, has returned exceptional results: "26 grams over 16 meters, 89g over 5.8m, 23g over 2.4m, just over 47g at about 4 meter intervals and 42g over 15m." These results demonstrate the camp-scale potential beyond the current resource areas.

"So some really good results at Dropkick, really exciting new target, not in the resource and so we're looking at drilling it and we're drilling it currently.”

The property contains extensive grab sample anomalies with "the purple is over 10 grams the red is 3 to 10 grams some some really high-grade grab samples" indicating numerous targets for systematic exploration.

Channel sampling and excavation programs are underway across the main deposits, with results "coming in the coming weeks" that could further expand the resource base. The systematic approach to exploration suggests continued resource growth potential.

Development Schedule & Future Plans

New Found Gold has established an aggressive but achievable development timeline targeting production by 2027. The schedule balances rapid advancement with thorough engineering and environmental studies.

"We want to get our permitting for the phase one completed through 2026 so that we can start construction in 2027 and then with a short construction window, start producing quickly.”

Phase Two development runs parallel, with feasibility studies beginning Q4 2025 to enable permitting through 2027-2028 and construction starting in 2029. This overlapping timeline ensures smooth transition from Phase One to the full-scale operation.

Environmental assessment preparation is already underway, with baseline studies completing in 2024 and project description preparation enabling "early next year to submit our environmental assessment application." The supportive government environment should facilitate timely approvals.

The engineering program encompasses extensive supporting studies including "metallurgical testing, geometallurgical modeling," geotechnical and condemnation drilling, and trade-off studies to optimize the plant configuration.

The Investment Thesis for New Found Gold

• Exceptional Returns: 197% IRR at current gold prices with 2-year payback period demonstrates outstanding capital efficiency 
• Low-Risk Entry: $155M initial capex provides production access with minimal dilution compared to traditional large-scale developments 
• Self-Funding Growth: Cash flow from Phase One funds subsequent phases, eliminating future equity dilution concerns 
• Tier-One Jurisdiction: Newfoundland and Labrador's top-10 global ranking provides regulatory certainty and government support 
• Experienced Management: Proven team with specific narrow-vein gold expertise and production track records 
• Significant Upside: Only 5km of 110km explored with exceptional drill results at Dropkick indicating camp potential 
• Infrastructure Advantage: Trans-Canada Highway, power grid, and skilled workforce within one hour drive 
• Gold Price Leverage: $89M NPV increase per $100 gold price rise provides inflation hedge and upside participation

New Found Gold represents a compelling investment opportunity combining near-term production certainty with substantial long-term growth potential. The company's phased development approach addresses traditional mining investment concerns around capital intensity and execution risk while preserving exceptional economics and gold price leverage.

The transformation to experienced production-focused management, combined with strong institutional backing and a tier-one jurisdiction, positions New Found Gold to execute its aggressive timeline toward 2027 production. With only a fraction of the property explored and exceptional economics at current gold prices, the investment case appears particularly compelling for investors seeking exposure to Canadian gold production with significant exploration upside.

Macro Thematic Analysis: The New Gold Rush

The global gold market is experiencing a fundamental shift driven by multiple converging forces that strongly favor well-positioned gold producers like New Found Gold. Central bank diversification away from dollar-denominated assets has created unprecedented institutional demand, with central bank gold purchases reaching record levels in recent years. This represents a structural shift rather than cyclical buying, as monetary authorities seek portfolio diversification amid growing geopolitical tensions.

Inflation concerns persist across developed markets despite central bank efforts, driving retail and institutional investors toward gold as a traditional inflation hedge. The real interest rate environment, while improving, remains historically low, reducing the opportunity cost of holding non-yielding gold assets. Currency debasement fears, particularly regarding the US dollar's long-term dominance, continue supporting gold's appeal as an alternative store of value.

Geopolitical instability from ongoing conflicts and trade tensions reinforces gold's safe-haven status. The weaponization of the dollar through sanctions has accelerated de-dollarization efforts globally, with many nations increasing gold reserves as protection against financial system exclusion. ESG considerations also favor gold over other commodities, as responsible mining practices gain investor attention.

Supply constraints compound the bullish case, with major gold discoveries increasingly rare and development timelines extending due to regulatory complexity. This supply/demand imbalance suggests sustained higher prices, particularly benefiting low-cost, high-grade operations in stable jurisdictions. Junior producers with clear paths to production, like New Found Gold, stand to benefit disproportionately as investors seek leveraged exposure to gold price appreciation while avoiding the operational risks of pure exploration plays.