New Found Gold Continues to Deliver High-Grade Gold at Queensway

New Found Gold Corp. (NFG) reported channel sampling results from the Lotto area, which returned 23.7 g/t Au over 15.88 m from 11.62 m (LT-25-01-27), including a high-grade interval of 164.69 g/t Au over 2.11 m. Other channel highlights included 3.38 g/t Au over 9.07 m (including 32.33 g/t Au over 0.41 m); 2.17 g/t Au over 16.36 m (including 16.53 g/t Au over 0.83 m); and 3.22 g/t Au over 12.83 m (including 17.09 g/t Au over 1.54 m).

Underground infill drilling yielded 43.5 g/t Au over 4.75 m from 298.45 m (NFGC-25-2661), including 97.44 g/t Au over 2.00 m, and 22.3 g/t Au over 3.60 m from 282.10 m (NFGC-25-2680), including 68.95 g/t Au over 1.00 m.

The channel sampling program covered 729 m across 57 lines spaced at 7.5 m, exposing a 210 x 70 m area of gold-bearing quartz veins. The infill drilling consisted of 7 diamond drill (DH) holes totaling 1,928 m, targeting Phase 2 open pit and Phase 3 underground resource conversion.

New Found Gold Corp. (NFG) released incremental infill and channel sampling results that validate its resource model and support the conversion of indicated resources. The company, currently an emerging producer with a completed preliminary economic assessment and phase 1 development targeted for late 2027, did not announce a new zone or resource expansion. The market already anticipates high grades at the Lotto deposit.

The stock has declined from approximately $4.78 to $1.96 over the past six months, a movement reflecting concerns regarding funding, dilution, and execution. These results do not alter the investment thesis materially, as there was no change to resource tonnes or grade, nor was an updated preliminary economic assessment provided. The results will feed into the updated mineral resource estimate scheduled for the second half of 2026, a timeline already known to the market.

With a market capitalization of approximately $753 million compared to the PEA’s after-tax NPV5% of $743 million (based on a base case of US$2,500 gold), the market is pricing in significant risk.

New Found Gold Corp. (NFG) is an emerging Canadian gold producer operating two primary assets: the Queensway Gold Project in central Newfoundland and the Hammerdown Gold Project on the Baie Verte peninsula. The Queensway project, situated along the 110 km strike of the Appleton Fault Zone, hosts high-grade orogenic gold. A preliminary economic assessment (PEA) released in July 2025 outlined a phased development plan. Phase 1 involves an open pit with toll milling, targeting 69.3 koz/yr at an all-in sustaining cost (AISC) of US$1,282/oz. Phase 2 proposes a large-scale open pit producing 172.2 koz/yr, followed by Phase 3 underground operations. The assessment calculated an after-tax NPV5% of $743M at US$2,500 Au, with initial capital expenditure of $155M.

The Hammerdown Gold Project was acquired through the merger with Maritime Resources. This open pit operation is targeting near-term production, with a PEA from February 2026 indicating average annual production of approximately 19.3 koz at an AISC of US$2,429/oz and an NPV5% of C$199M. Production ramp-up is currently underway, with commercial production expected in the second half of 2026.

Infrastructure support includes the 100%-owned Pine Cove mill, which is permitted for 700 tpd and is being converted to a Gravity-CIL circuit to improve recoveries. The company has a market capitalization of approximately C$753M, with 384.1M basic shares and 408.6M fully diluted shares outstanding. New Found Gold holds approximately $148M in cash following recent financings, alongside an undrawn $35M credit facility. Notable shareholders include Eric Sprott, who holds a 19% stake.