Visiting the Iceberg zone at New Found Gold’s Queensway project in northeast Newfoundland. Credit: Blair McBride
New Found Gold (TSXV: NFG; NYSE-A: NFGC) has outlined a staged development starting with toll milling and expanding to an underground mine and processing plant, according to a preliminary economic assessment for the Queensway gold project in central Newfoundland.
The study envisions a 15-year mine life producing 1.5 million oz. of gold, starting with a 700-tonne-per-day open-pit operation and later expanding to a 7,000 tonne per day underground mine, the company said Tuesday. The project carries an after-tax net present value (NPV) of C$742 million at a 5% discount rate and an internal rate of return (IRR) of 56%.
Initial capital for the first stage is projected at C$155 million, rising to C$442 million with the underground development in stage two. The study used a base case gold price of…
