EL7.AI
StocksMedium•23 October 2026•
4 min read

38% Increase Lifts Measured and Indicated Gold Resources at Queensway Project to 1.920 Million Ounces

Key Facts

1Measured and indicated resources rose 38%, or 528,000 ounces, to 1.920 million ounces of gold.
2The assessment estimated after-tax net present value at C$1.728 billion and an internal rate of return of 126%, based on a gold price of US$3,600 an ounce.
3The plan forecasts production of 1.744 million ounces over 15 years, averaging 116,000 ounces a year and peaking at 190,000 ounces in 2032.
4The company is targeting the start of mining in the third quarter of 2027, subject to receipt of all required permits.

New Found Gold on October 22, 2026, announced a revised preliminary economic assessment and an updated mineral resource estimate for its wholly owned Queensway project in Newfoundland and Labrador. Measured and indicated resources rose 38%, or 528,000 ounces, to 1.920 million ounces of gold. In contrast, inferred resources remained at 606,000 ounces, according to the company statement. The company linked most of the resource growth to pit optimization improvements and the addition of the Dropkick zone to the resource estimate. The announcement presents the resource update alongside an economic assessment and phased development concept for the project, while the company emphasized that the assessment does not establish mineral reserves.

In the assessment’s base case, the company used a long-term gold price of US$3,600 an ounce and an exchange rate of C$1.39 per US dollar. The assessment estimated after-tax net present value at a 5% discount rate at about C$1.728 billion, and an internal rate of return of 126%. Chief Executive Keith Boyle said the assessment "more than doubles the project’s net present value to $1.7 billion and lifts the internal rate of return to 126%." The company also forecast cumulative after-tax cash flow of C$2.551 billion over the mine’s estimated 15-year life. That cash flow includes C$836 million from Phase 1, according to company data.

The plan forecasts production of 1.744 million ounces of gold over a 15-year mine life, averaging 116,000 ounces a year. The company estimated annual production would peak at 190,000 ounces in 2032. The plan is based on two ore-processing phases. The first would process open-pit ore from the Keats and Iceberg deposits at the Pine Cove mill. The company is targeting the start of this processing in the fourth quarter of 2027 at a rate of 700 tonnes a day. The second phase would begin in 2031 at a new Queensway mill, processing mineralized material from open-pit and underground mines across all deposits at a rate of 4,900 tonnes a day.

The development plan includes regulatory steps before field work begins. The company said an environmental assessment report is required for Phase 1 and that it is targeting submission in the fourth quarter of 2026. After submission, the report will undergo a 35-day review. The company said this review may be followed by steps to obtain provincial and federal permits and approvals. According to the announcement, mining is expected to begin in the third quarter of 2027, subject to receipt of all required permits. The company also intends to file the technical report for the assessment and resources within 45 days of its announcement.

The company reported that it had about C$167 million in cash and cash equivalents in its treasury on September 30, 2026, along with an available debt facility of C$35 million. On expected local impact, it said the project could provide 530 new direct jobs in central Newfoundland over the mine’s life. These include 410 jobs in mining operations and 120 at the mill. The announcement presents these estimates in the context of a project with an expected 15-year operating life, progressing from initial processing at an existing facility to a new Queensway mill. NFGC shares closed at $1.57 on October 22, 2026, according to data provided by EL7.

The preliminary assessment designation carries a key limitation in interpreting its figures: the company said it includes inferred resources, which it describes as geologically too speculative to have economic considerations applied to them to classify them as mineral reserves. No mineral reserves have been defined for the Queensway project, according to the announcement. The company added that there is no certainty the results of the preliminary assessment will be realized. Production, cash-flow and return figures in the assessment therefore remain part of an initial project plan. The next dated steps include the targeted submission of the environmental assessment report in the fourth quarter of 2026, followed by expected mining to begin in the third quarter of 2027 if the required permits are issued.