New Found Gold’s Hammerdown project shows $199M NPV in positive study

New Found Gold (TSXV: NFG; US-NYSE American: NFGC) has announced results of a positive preliminary economic assessment (PEA) and updated mineral resource estimate for its Hammerdown gold project in Newfoundland and Labrador.

The project includes the Hammerdown deposit, Orion deposit and Stog'er Tight deposit, along with the Pine Cove Mill. The company evaluates the deposits with a Hub and Spokes model centered around Pine Cove, with the Hammerdown deposit currently ramping up to commercial production.

"Today's updated mineral resource and life of mine plan for Hammerdown demonstrates cashflow generation from operations which will offset overhead and exploration costs as we continue to fast-track our flagship Queensway gold project towards production in H2/27, taking full advantage of the tremendous synergies through our strategic purchase of Pine Cove and the Nugget Pond gold circuit. This purchase accelerates the development of Queensway by two to three years, coinciding with this exciting gold market," Keith Boyle, CEO, said.

Boyle noted the company's exploration track record in discovering orogenic gold deposits in central Newfoundland. "Our team has a demonstrated track record of exploration success in the discovery of orogenic gold deposits in central Newfoundland. With the completion of the Maritime Resources Corp. acquisition just over three months ago, we have commenced evaluation of the exploration upside of the Project. As part of our Hub and Spoke strategy, the mine plan brings in additional resources with the inclusion of the Orion and Stog'er Tight deposits, which were not contemplated in previous mine plans. We look forward to commencing exploration work on our new landholdings later this year," he continued.

Project details

The Hammerdown project encompasses the company's Hammerdown property and Pine Cove property. The Hammerdown property contains the Hammerdown deposit and Orion deposit, while the Pine Cove property includes the Stog'er Tight deposit and Pine Cove processing facility.

The Hammerdown deposit operates as an open-pit mining operation with first gold pour achieved in November 2025 and currently ramps up gold production. The deposit sits in north-central Newfoundland approximately 95 kilometers by road from Pine Cove, which houses a fully permitted and operating processing plant and tailings facility. The company expects to achieve commercial production at Hammerdown in the second half of 2026.

The Stog'er Tight deposit sits on the Pine Cove property, located four km east of Pine Cove. The company's flagship Queensway gold project operates approximately 270 kilometers by road from Pine Cove and about 15 km west of Gander.

Key economic results

The PEA delivered an after-tax net present value at 5% discount rate of $199.2 million at the base case gold price scenario and $415.1 million at an upside gold price of $5,000 per ounce. The study used a variable price deck with a long-term price of $3,475 per ounce averaging $3,656 per ounce of gold.

The 13-year mine plan projects total mill feed throughput of 3.2 million tonnes with an average mined grade of 2.19 grams of gold per tonne. Post-sorting mill feed head grade averages 2.89 grams per tonne with average annual gold production of approximately 19,300 ounces per year.

The study calculated average life-of-mine cash costs of $2,149 per ounce and all-in sustaining costs of $2,429 per ounce. Total capital costs with contingency reach an estimated $24.3 million, while reclamation and closure costs total $18.0 million.

The company developed the PEA mine plan from Measured and Indicated Mineral Resources of 3.328 million tonnes grading 2.43 grams per tonne gold containing 260,000 ounces of gold and Inferred Mineral Resources of 2.132 million tonnes grading 2.34 grams per tonne gold containing 161,000 ounces of gold.

More information is posted at www.NewFoundGold.ca