New Found Gold Corp. (CVE: NFG) (NYSE-A: NFGC) is moving into the next stage of permitting for its Queensway Gold Project in Newfoundland and Labrador after provincial regulators requested a more detailed environmental review, while the company also secured an important permit needed to convert its Pine Cove processing mill.
The Newfoundland and Labrador government informed the company that it must prepare an Environmental Preview Report (EPR) for the proposed first phase of the Queensway project before the environmental assessment process can move forward. Additionally, New Found Gold received an amendment allowing it to convert the processing circuit at its wholly owned Pine Cove mill, supporting plans to process future ore from both Queensway and the nearby Hammerdown project.
The province’s Minister of Environment, Conservation and Climate Change notified the company of the decision in a letter dated July 3 following regulatory review and public feedback on Queensway’s environmental registration. The registration entered the provincial environmental assessment process after New Found Gold submitted it on April 30, with formal registration beginning on May 7.
Under Newfoundland and Labrador legislation, the province must provide guidelines for completing the Environmental Preview Report within 60 days of the decision. Subsequently, once the company submits the report, the document will enter a 35-day public review period before the minister has 45 days to issue another decision.
The Environmental Preview Report represents a more detailed examination of the project’s potential environmental effects. It also gives government agencies, Indigenous groups, local communities and other stakeholders another opportunity to review the proposal before construction permits can proceed.
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New Found Gold owns the Pine Cove facility
Chief executive officer Keith Boyle said the company remains focused on advancing its flagship gold project while working through the environmental review process. He said management appreciates the province’s review and plans to respond to comments received during the public consultation with the goal of completing the environmental assessment process.
Boyle also said engineering work continues at Pine Cove, and the company still expects to transport the first material from Queensway Phase 1 to the mill during the fourth quarter of 2027.
Meanwhile, the company announced progress at Pine Cove, where it plans to process ore from both the Hammerdown and Queensway projects rather than relying on a third-party mill.
New Found Gold owns the Pine Cove facility outright and already holds permits for its operation. The company believes using one larger processing facility will reduce operating complexity while allowing experienced mill workers to handle material from multiple mines.
The newly approved permit amendment allows Pine Cove to convert its existing 700-tonne-per-day flotation, leach and Merrill-Crowe processing circuit into a gravity-carbon-in-leach, or Gravity-CIL, circuit.
Gravity-CIL processing combines gravity separation with carbon-based gold recovery. Consequently, it generally performs better when treating coarse gold, which Queensway contains in significant quantities.
The company also plans to double Pine Cove’s processing capacity to 1,400 tonnes per day. However, it has not yet received approval for that expansion and said it will submit the necessary application later.
Recent metallurgical testing indicates the upgraded processing circuit could improve expected gold recovery from Hammerdown ore. The company estimates recoveries could increase from the original design target of 87 per cent to approximately 92 per cent.
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The operations team continues ramping up mining activities
Additionally, management believes the upgraded circuit offers the preferred processing method for Queensway’s high-grade coarse gold mineralization.
Engineering, procurement and construction management work began during the first quarter of 2026 and continues to advance.
Detailed engineering, early construction work and geotechnical drilling started at Pine Cove earlier this year. Furthermore, procurement of long-lead equipment and negotiations for major construction contracts are already underway.
The company expects to complete the Pine Cove conversion and expansion during the fourth quarter of 2027.
Mining operations at Queensway Phase 1 will rely on contract mining companies working under technical supervision from New Found Gold’s operations team.
Meanwhile, that operations team continues ramping up mining activities at the Hammerdown deposit, which forms part of the Hammerdown Gold Project.
Management continues targeting commercial production at Hammerdown during the second half of 2026. Additionally, executives expect the experience gained during construction and early operations there will improve efficiency when Queensway enters production.
Several other technical programs also remain on schedule across the Queensway project.
These include detailed engineering, procurement planning, infrastructure development, water management planning and additional metallurgical testing. In addition, the company continues preparing an updated mineral resource estimate.
Planning also continues for relocating hydroelectric transmission lines that currently cross parts of the project area. Company officials said discussions with transmission line owners remain on schedule.
The company outlined several priorities for the coming months as Queensway advances through permitting.
Management first plans to review provincial guidelines before preparing and submitting the Environmental Preview Report.
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Company continues discussions with stakeholders
Subsequently, if the province releases the project from the environmental assessment process, New Found Gold intends to apply for early works permits and construction approvals.
The company also plans to complete final engineering and detailed project design. Additionally, it will continue developing environmental protection plans, waste management strategies and other operational documents required before construction.
Community consultation will remain another priority.
The company said it plans to continue discussions with stakeholders while negotiating Good Neighbour Agreements with key groups.
Meanwhile, New Found Gold expects to publish an updated technical report during the second half of 2026.
The report will include a revised mineral resource estimate together with updated mine designs for Phases 1, 2 and 3.
It will also contain revised capital cost estimates, operating cost projections and updated financial analysis.
Management said it continues evaluating opportunities to improve the current development schedule. However, the company still targets transporting first material from Queensway to Pine Cove during the fourth quarter of 2027 and reaching commercial production during the second half of 2028.
Queensway Phase 1 centres on developing four open pits together with supporting infrastructure.
The project also includes waste rock storage areas, overburden stockpiles, crushing and ore sorting facilities, haul roads, water management systems and maintenance buildings.
The mine will produce approximately 700 tonnes of pre-concentrated material each day.
Workers will then transport that material to Pine Cove on the Baie Verte Peninsula for final processing.
According to the preliminary economic assessment, Phase 1 carries an initial capital cost of CAD$155 million.
The study estimates average annual production of approximately 69,300 ounces of gold.
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Queensway’s planned development carries broader economic implications
Additionally, it projects all-in sustaining costs of USD$1,282 per ounce based on mining roughly 1.15 million tonnes averaging 9.64 grams of gold per tonne.
The company cautioned that both the Queensway and Hammerdown preliminary economic assessments remain preliminary in nature.
Neither project currently contains mineral reserves.
Instead, both studies rely partly on inferred mineral resources, which remain too speculative geologically to support mineral reserve estimates or guarantee future economic viability.
The company also emphasized that mineral resources differ from mineral reserves because they have not demonstrated economic viability.
Queensway’s planned development also carries broader economic implications for central Newfoundland.
The company estimates construction will support more than 200 full-time equivalent jobs.
Meanwhile, operations could employ more than 230 full-time equivalent workers at peak production.
New Found Gold also said it intends to continue emphasizing local hiring, workforce training and regional business opportunities.
Additionally, the company plans to update its Gender, Equity and Diversity Plan as operations expand.
Management said it will continue supporting communities including Appleton, Glenwood and Gander through financial contributions and volunteer activities.
As of December 2025, Queensway exploration activities employed 97 direct workers together with 105 contractors.
Approximately 88 per cent of employees working at New Found Gold sites were Newfoundland and Labrador residents. Additionally, 61 per cent came from communities in central Newfoundland.
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