New Found Gold Delivers Strong Economics in Queensway PEA with 56.3% IRR & $743M NPV

• New Found Gold's Queensway PEA shows strong economics with $743M after-tax NPV5% and 56.3% IRR at $2,500/oz gold, scaling to $1.45B NPV at $3,300/oz gold.
• Three-phase development requires $155M initial capital for Phase 1 toll milling, then $442M for on-site processing with sub-one-year payback.
• Project will produce 1.5M ounces over 15 years at $1,256/oz AISC, ramping from 69.3K oz/year in Phase 1 to 172.2K oz/year peak in Phase 2.
• Excellent infrastructure includes Gander airport proximity, Trans-Canada Highway access, and low-cost hydro power, enabling Q3 2027 first production.
• Company controls 1.39M indicated and 0.61M inferred ounces across 175,450 hectares with exploration upside along 110km strike length.

New Found Gold Corp. (TSX-V: NFG, NYSE-A: NFGC) is a Canadian gold exploration and development company focused on advancing its flagship 100% owned Queensway Gold Project located near Gander, Newfoundland and Labrador. The company owns a 175,450-hectare property strategically positioned in central Newfoundland with significant exploration potential across a 110-kilometer strike extent. On July 21, 2025, New Found Gold announced the results of its first Preliminary Economic Assessment (PEA) for the Queensway project, marking a significant milestone in the company's development timeline.

The PEA results demonstrate the potential economic viability of the project through a phased development approach designed to minimize initial capital requirements while generating early cash flow. For investors evaluating New Found Gold, the study provides crucial financial metrics and development timelines that position the company as a potential low-cost gold producer with significant leverage to higher gold prices.

Project Economics & Financial Metrics

The Queensway PEA presents compelling economics at current gold price assumptions. Using a base case gold price of US$2,500 per ounce, the project generates an after-tax net present value at 5% discount rate (NPV5%) of $743 million and an internal rate of return (IRR) of 56.3%. These metrics demonstrate the project's robust economics even at conservative gold price assumptions.

The project shows exceptional leverage to higher gold prices. When the gold price assumption increases to US$3,300 per ounce, the after-tax NPV5% nearly doubles to $1.45 billion, while the IRR increases dramatically to 197%. This sensitivity analysis indicates significant upside potential for investors in a higher gold price environment.

Over the 15-year life of mine, Queensway is projected to produce 1.5 million ounces of recoverable gold at an average total cash cost of US$1,085 per ounce and an all-in sustaining cost (AISC) of US$1,256 per ounce. The average annual after-tax cash flow is estimated at $75.2 million, with cumulative life-of-mine after-tax cash flow of $1,128 million.

Phased Development Strategy

New Found Gold has designed a three-phase development strategy that prioritizes early cash flow generation and capital efficiency. CEO Keith Boyle emphasized the strategic approach:

"Since day one, the objective of the new management team at New Found Gold has been to advance Queensway to cash flow. The PEA outlines a phased approach with an initial small high-grade open pit mine with toll milling, followed by the construction of a larger on-site operation, which will include both open pit and underground mining."

Phase 1: Low-Capital Entry (Years 1-4)

Phase 1 requires initial capital of $155 million and focuses on high-grade open pit mining with off-site toll milling. This phase targets average annual gold production of 69.3 thousand ounces at an AISC of US$1,282 per ounce over the first four years. High-grade material will be processed at a rate of 700 tons per day at an existing toll mill facility located approximately 300 kilometers from the Queensway site.

The Phase 1 strategy allows for immediate revenue generation while stockpiling lower-grade material for future processing. With average annual after-tax operating cash flow of $117 million, Phase 1 is designed to pay back the initial capital investment within two years and fund subsequent development phases.

Phase 2: Expansion & On-Site Processing (Years 5-15)

Phase 2 involves $442 million in growth capital for constructing a 7,000 tons-per-day on-site processing plant. Construction begins in Year 3 with completion in Year 4, allowing processing to commence in Year 5. This phase delivers average annual gold production of 129.0 thousand ounces at an AISC of US$1,206 per ounce from Years 5 to 13.

During the initial five years of on-site processing (Years 5-9), the project achieves higher production levels of 172.2 thousand ounces annually at a lower AISC of US$1,090 per ounce. The growth capital investment is projected to be paid back in less than one year after Phase 2 operations begin.

Phase 3: Underground Mining (Years 6-10)

Phase 3 introduces underground mining operations starting in Year 6, utilizing a mechanized cut-and-fill method at a production rate of 700 tons per day. The underground component targets high-grade mineralization through five separate ramp systems, processing 1.1 million tonnes of material at an average diluted grade of 6.67 grams per tonne gold over five years.

Resource Base & Mining Operations

The Queensway project is supported by a substantial mineral resource base. Measured and Indicated Mineral Resources total 18.0 million tons at 2.40 grams per tonne gold, containing 1.39 million ounces. Inferred Mineral Resources add 10.7 million tons at 1.77 grams per ton, containing 0.61 million ounces.

The mining plan encompasses 17 open pits, with three main pits (Iceberg, Keats, and Keats West) sequenced early in the mine life. These pits will subsequently serve as in-pit tailings deposition facilities, providing environmental and cost benefits. The open pit operation will mine 26.3 million tons of mineralized material at an average diluted grade of 1.65 grams per ton gold with a 6:1 strip ratio.

Underground operations will access five zones through surface portals collared from smaller open pits. The primary mining method utilizes a 3-meter by 3-meter stope size to minimize dilution while maximizing selectivity.

Processing & Metallurgical Considerations

New Found Gold has completed extensive metallurgical testing across multiple mineralized zones. The testing supports an overall recovery assumption of 92%, with 48% of gold reporting to doré and 44% reporting to concentrate through gravity concentration and flotation processes.

The on-site processing plant will feature a conventional circuit including comminution, gravity concentration, sulphide flotation, cyanide leaching, and carbon adsorption. The facility will operate at 92% utilization through standby equipment in critical areas and reliable power supply from the provincial grid.

Infrastructure & Environmental Advantages

Queensway benefits from favorable infrastructure positioning. The project is located approximately 20 kilometers west of Gander, a town of nearly 12,000 people with an international airport and industrial capabilities. The Trans-Canada Highway passes through the property, providing direct access for transportation and logistics.

Power requirements of 15-20 megawatts at full operation will be supplied from the existing provincial transmission grid, which has three electricity transmission corridors crossing the project. The availability of low-cost hydroelectric power provides a competitive advantage for operating costs.

From an environmental perspective, CEO Keith Boyle noted the strategic benefits:

"A phased project design provides for early gold revenue generation, processing of the highest-grade mineralized material at the start of the operation and in-pit tailings deposition. This unique combination of design elements allows for low initial capital investment, a rapid payback of that initial investment, using cashflow to grow the operation thereby providing for a superior rate of return, and minimizing dilution to shareholders."

Development Timeline & Next Steps

New Found Gold has outlined an aggressive development timeline targeting first production in 2027. The company plans to submit an Environmental Assessment in the first half of 2026, followed by an updated Mineral Resource Estimate and technical report to support Phase 1 by the second quarter of 2026.

Subject to project financing, long-lead-time equipment procurement and early works programs are planned for 2026. Phase 1 construction is scheduled to commence in 2027 with first production targeted for the third quarter of 2027.

Current activities include a 70,000-meter drill campaign focusing on infill drilling to upgrade mineral resources and definition drilling of high-grade areas. The company is also conducting ongoing metallurgical testing, geotechnical studies, and environmental baseline work to support the development schedule.

CEO Keith Boyle emphasized the advancement strategy:

"The infill, definition and exploration drilling, completion of the environmental baseline work, trade-off and further engineering studies will allow for rapid advancement of the phased Project."

Risk Considerations

As with any preliminary economic assessment, investors should note important limitations. The PEA includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied that would enable categorization as mineral reserves. The study is preliminary in nature, and there is no certainty that the PEA projections will be realized.

The project requires successful completion of environmental assessments, permitting processes, and project financing before development can proceed. Additionally, the economics are sensitive to gold price fluctuations, operating cost inflation, and potential changes in metallurgical recovery assumptions.

For Investors

New Found Gold's Queensway PEA demonstrates the potential for developing a low-cost, high-margin gold operation in a favorable jurisdiction. The phased development approach addresses key investor concerns about capital intensity while providing early cash flow generation and significant leverage to gold price appreciation.

The combination of robust economics at base case assumptions, exceptional returns at higher gold prices, and a clear path to production within three years positions New Found Gold as a compelling opportunity for investors seeking exposure to gold development projects. The company's strategic location in Newfoundland, substantial resource base, and experienced management team provide additional confidence in execution capabilities.

For investors evaluating New Found Gold, the Queensway PEA represents a significant de-risking milestone that validates the economic potential of the project while establishing a clear development roadmap toward cash flow generation.