New Found Gold Corp. (TSXV:NFG) - Production Margins Support 100,000m Queensway Program

Mar 3, 2026

Keith Boyle, CEO of New Found Gold, is steering the company from explorer to near-term producer, integrating Hammerdown and the Pine Cove mill. He discusses acquiring producing assets to accelerate Queensway, plans to truck high-grade ore to Pine Cove, Phase 1 economics and margins, addressing nuggety concerns with dense grade-control drilling, and a large 2026 drilling program.

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INSIGHT

Use Existing Permitted Mills To Save Years

New Found Gold chose to fast-track production by using existing permitted mills instead of building an on-site mill.
CEO Keith Boyle explains building an in-pit tailings solution would add 2–3 years to permitting and delay cash flow significantly.

ADVICE

Acquire Assets To Fund Development Without Dilution

Acquire producing assets and permitted infrastructure to generate immediate cash flow and avoid dilution.
Boyle says Maritime gave Hammerdown (ramping) and Pine Cove mill, enabling cash flow now and processing capacity for Queensway.

INSIGHT

Phase One Economics Deliver Large Free Cash Flow

Queensway Phase 1 targets 700 t/d at 9–10 g/t, with trucking plus processing costing ~1 g/t.
At current gold prices and $1,300/oz AISC, Boyle projects >$250M free cash flow in the first four years to fund an on-site mill.

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Interview with Keith Boyle, CEO, New Found Gold

Our previous interview: https://www.cruxinvestor.com/posts/new-found-gold-tsxvnfg-permitted-infrastructure-accelerates-path-to-gold-production-9383

Recording date: 2nd of March 2026

New Found Gold is executing a calculated transformation from exploration company to near-term producer under CEO Keith Boyle, who joined the company one year ago with a clear mandate: convert five years of exploration work into cash flow generation.

The cornerstone of this strategy was the acquisition of Maritime Resources, which delivered two critical assets—the producing Hammerdown mine and the permitted Pine Cove Mill. Hammerdown achieved first pour in November 2025 and is ramping to steady-state production, generating immediate cash flow at current gold prices. Meanwhile, the Pine Cove Mill, which restarted in March 2025, will be expanded from 700 to 1,400 tons per day capacity to process material from both Hammerdown and the flagship Queensway project.

This acquisition-driven approach solves a fundamental challenge: accelerating Queensway production by 2-3 years. Building an on-site mill would require in-pit tailings deposition, significantly extending permitting timelines and forcing continuous dilutive financing. Instead, New Found Gold plans to ship Queensway material 270 kilometers along the Trans-Canada Highway to Pine Cove by the end of 2027.

The economics prove compelling. Queensway's Phase 1 targets 700 tons per day at grades of 9-10 grams per ton gold, with all-in sustaining costs of $1,300 per ounce. Combined trucking and processing costs approximately one gram per ton, leaving substantial margins at current gold prices above $5,000 per ounce. The company projects over $250 million in free cash flow during the first four years, which will fund construction of an on-site mill for Phase 2 expansion.

Recent grade control drilling on 5x5 meter centers addresses previous concerns about "nuggety" mineralization, revealing instead consistent gold distribution as fine flakes throughout high-grade shoots. This systematic de-risking, combined with visible gold at surface in the Iceberg zone, positions Queensway for low-capital-intensity production start-up while the company continues district-scale exploration with 100,000 meters of drilling planned for 2026.

Learn more: https://www.cruxinvestor.com/companies/new-found-gold