New Found Gold PEA Delivers C$199M NPV5% and 251k Ounce Production
New Found Gold’s Hammerdown project PEA reports after-tax NPV5% of C$199 M at US$3,475/oz and C$415 M at US$5,000/oz over a 13-year mine life. It forecasts 251,287 oz Au production at cash costs of US$2,149/oz and AISC of US$2,429/oz from 3.2 Mt processed at 2.89 g/t.
1. PEA Financial Highlights
The preliminary economic assessment returns an after-tax NPV5% of C$199.2 M at a long-term gold price of US$3,475/oz and C$415.1 M at US$5,000/oz, generating C$243.3 M in after-tax free cash flow. Total initial capital costs are estimated at C$24.3 M with reclamation and closure costs of C$18.0 M.
2. Production Profile and Costs
Over a 13-year life of mine, the project will process 3.2 Mt of mill feed at an average mined grade of 2.19 g/t Au and a post-sorting grade of 2.89 g/t, producing 251,287 oz of gold. Average life-of-mine cash costs are US$2,149/oz and all-in sustaining costs are US$2,429/oz.
3. Hub and Spoke Mine Plan
The mine plan integrates the Hammerdown, Orion and Stog’er Tight deposits into a hub-and-spoke model centered on the Pine Cove Mill, with Hammerdown ramping up to commercial production in H2/26. The acquisition of Pine Cove and Nugget Pond gold circuit accelerates development of the flagship Queensway project by two to three years.
4. Exploration Upside and Next Steps
All three deposits remain open laterally and at depth, with additional target areas identified. The company plans to commence exploration drilling in H2/26 to expand resources and enhance project value.