New Found Gold (TSXV:NFG) - Hammerdown & the Path to Production

Why It Matters

Successful steady-state production at Hammerdown and optimized mill performance at Pine Cove would create self-funding cash flow and operational expertise to de-risk and accelerate Queensway’s development, turning New Found Gold into a producer with a clear path to larger-scale output and revenue. Confidence: 85

Summary

New Found Gold is transitioning from explorer to operator, ramping the Hammerdown mine toward commercial production this year while refurbishing the Pine Cove mill to support operations. Management says Hammerdown will produce roughly 20,000–25,000 oz/year at an all-in sustaining cost near $2,500/oz—generating about $40–50 million annually to fund G&A and exploration—and the company has raised $220 million to advance its flagship Queensway project toward production by the end of next year. The company is running a 90,000 m regional drill campaign at Queensway and using the Hammerdown ramp-up as an operational training ground, redeploying experienced staff and new local hires to scale up for Queensway. Workforce on site totals 264 (76 employees, 188 contractors), with most hires sourced locally in Newfoundland and Labrador.

Original Description

Interview with Keith Boyle, CEO & Director of New Found Gold

Our previous interview: https://www.cruxinvestor.com/posts/new-found-gold-tsxvnfg-fully-funded-drill-program-for-2026-10527

Recording date: June 9th 2026

New Found Gold Corp (TSXV: NFG | NYSE-A: NFGC) is advancing two gold projects in Newfoundland and Labrador, Canada. Its flagship Queensway Gold Project hosts a NI 43-101 resource of 1.39 million ounces of indicated gold at 2.40 g/t and 0.608 million ounces of inferred gold at 1.77 g/t. The Hammerdown Gold Project, acquired in 2025, provides access to the Pine Cove Mill, a fully permitted, operational processing facility that will receive Queensway Phase 1 ore from Q4 2027, with commercial production targeted for 2028.

Hammerdown is in the final stages of its ramp-up to commercial production, defined as sustained 700 tonne-per-day throughput with consistent grade from the open pit. At steady state, the operation is projected to generate $40 to $50 million per year in free cash flow at an AISC of approximately $2,500 per ounce - sufficient to cover corporate overhead and fund the exploration program. The Pine Cove Mill is being doubled in throughput capacity as part of the Phase 1 capital program, removing the need for a separate processing facility at Queensway. A $220 million financing package closed in April 2026 funds Phase 1 construction, with $148 million in cash and marketable securities held as of May 2026.

Queensway Phase 1 targets approximately 100,000 ounces per year in the first two years at grades of 12 to 12.5 g/t and an AISC of around $1,300 per ounce. The PEA's base case at US$2,500 gold shows an after-tax NPV of C$743 million, an IRR of 56%, and payback of under two years. The operational team being assembled at Hammerdown, including newly promoted General Manager of Mines Mark Ross, will transfer directly to Queensway.

A 90,000-metre drill program is underway across a 110-kilometre land package, with the Dropkick zone, returning intercepts of up to 42.79 g/t Au over 14.95 metres and excluded from the current MRE, among the key targets. An updated resource estimate incorporating Dropkick is expected in 2026.

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