New Found Gold Delivers Key Milestone at Queensway Gold Project: Enters into Phase 1 EPCM Contract
New Found Gold Advances Queensway Toward 2027 Production with Key EPCM Contract and Offsite Mill Plan, While Near-Term Cash Flow Looms from Hammerdown
The January 26, 2026 news release announces multiple, coordinated advancements for the 100%-owned Queensway Gold Project, marking a clear transition from studies to execution. Key items include: entering into a Phase I EPCM (Engineering, Procurement, and Construction Management) contract with WSP Canada Inc.; selecting the recently acquired Pine Cove Mill (via the Maritime Resources acquisition) for offsite toll milling of Queensway's high-grade Phase 1 ore; substantial completion of environmental baseline work with an Environmental Registration targeted for late Q1 2026; and the ongoing engagement of a project finance advisor (CF&Co) for the ~C$155M initial capital expenditure. The company reaffirmed its target for a first gold pour in H2 2027, pending permits.
This news is materially positive as it demonstrates tangible, de-risking progress along the critical path to production outlined in the July 2025 PEA. The selection of WSP, a reputable engineering firm, for EPCM work validates the project's technical foundation and initiates detailed engineering. Securing the Pine Cove Mill for toll processing is a significant strategic advantage, eliminating the need to permit and build a mill for Phase 1, reducing upfront capital, and accelerating the timeline to cash flow. These steps are in line with management's stated timeline and strategy. The news confirms the company is executing its plan without major setbacks, which should build investor confidence in the 2027 production target.
New Found Gold is an emerging Canadian gold developer with a multi-asset portfolio in Newfoundland and Labrador. Its flagship Queensway Gold Project is a district-scale (230,225 hectares) exploration and development property. A July 2025 PEA outlined a robust, phased development plan: a low-capital (C$155M) Phase 1 using offsite toll milling (avg. 69.3 koz/yr Au at AISC of US$1,282/oz) targeting first gold in H2 2027, followed by a larger on-site operation (Phase 2). The initial March 2025 MRE contained 1.39 Moz Au Indicated and 0.61 Moz Au Inferred. Through the November 2025 acquisition of Maritime Resources, the company added the Hammerdown Gold Project (a permitted, former high-grade producer targeting 50 koz/yr from 2026) and the fully permitted Pine Cove Mill, which is now integral to the Queensway Phase 1 plan.