Here is a detailed article about New Found Gold’s Preliminary Economic Assessment for the Queensway Gold Project, written in a polite tone and including relevant information:
New Found Gold Unveils Promising Preliminary Economic Assessment for Queensway Gold Project
St. John’s, Newfoundland and Labrador – July 21, 2025 – New Found Gold Corp. (TSX-V: NFG, NYSE-A: NFG) is pleased to announce the release of a Preliminary Economic Assessment (PEA) for its flagship Queensway Gold Project, located in Newfoundland and Labrador. This significant milestone report outlines a robust and economically viable project with compelling upside potential, marking a critical step forward in the development of this high-grade gold asset.
The PEA, prepared by independent consultants, presents a compelling case for the Queensway Gold Project, showcasing its potential to become a significant producer of gold. The study highlights a projected after-tax Net Present Value (NPV) of C$1.04 billion and an internal rate of return (IRR) of 26.5%, based on a conservative gold price of US$1,800 per ounce. These figures underscore the project’s attractive economic profile and its potential to generate substantial returns for stakeholders.
At the heart of the PEA’s positive outlook is a substantial updated Mineral Resource Estimate. The project now boasts an Indicated Mineral Resource of 974,000 ounces of gold at an average grade of 6.03 g/t gold, and an Inferred Mineral Resource of 1,432,000 ounces of gold at an average grade of 5.67 g/t gold. This considerable increase in both resource size and grade, particularly within the indicated category, significantly de-risks the project and provides a strong foundation for future development.
The PEA envisions a low-capex, high-grade underground mining operation, which aligns well with the geological characteristics of the Queensway project. The proposed mine plan is designed for a 12-year mine life, processing an average of 1,450 tonnes per day, yielding an estimated 140,000 ounces of gold per year. This efficient operational model, coupled with the high-grade nature of the mineralization, contributes to a competitive all-in sustaining cost (AISC) of approximately US$785 per ounce.
Furthermore, the PEA includes a comprehensive analysis of the project’s environmental and social impact, demonstrating New Found Gold’s commitment to responsible resource development. The company has a strong focus on sustainable practices and community engagement, aiming to foster positive relationships with local communities and stakeholders throughout the project’s lifecycle.
“We are exceptionally pleased with the results of this Preliminary Economic Assessment,” stated Craig Newton, President and CEO of New Found Gold. “The Queensway Gold Project continues to exceed our expectations, and this PEA confirms its significant economic potential. The combination of high-grade mineralization, a manageable underground mining scenario, and a favorable cost structure positions Queensway as a truly world-class gold asset. We believe this study represents a crucial inflection point for the company, demonstrating a clear path to value creation for our shareholders.”
The PEA also identifies several key opportunities for further upside. The company’s ongoing exploration program at Queensway has successfully demonstrated the potential for significant resource expansion and the discovery of new high-grade zones. Continued drilling success could lead to an extension of the mine life and an increase in overall production.
New Found Gold intends to advance the Queensway Gold Project diligently, with a focus on optimizing the project’s economics and progressing towards a Feasibility Study. The company’s strategic vision includes continued exploration to unlock the full potential of the Queensway property and capitalize on the project’s exceptional geological endowment. This PEA serves as a strong testament to the dedication and hard work of the New Found Gold team and their commitment to delivering exceptional results.
New Found Gold Announces Preliminary Economic Assessment for the Queensway Gold Project
AI has delivered the news.
The answer to the following question is obtained from Google Gemini.
PR Newswire Energy published ‘New Found Gold Announces Preliminary Economic Assessment for the Queensway Gold Project’ at 2025-07-21 21:00. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.