With gold prices still elevated, New Found Gold Corp (TSE: NFGC) (NYSEAMERICAN: NFGC) (FRA: 5QG) has begun commercial production at its first mine.
On Sept. 16, The company revealed that it had achieved commercial production at Hammerdown in central Newfoundland just under one month prior. In the 60 days leading up to this milestone, the mill processed roughly 748 tonnes a day, recovered 87.7 per cent of the gold and fed material grading 2.92 grams per tonne. Those figures beat the targets the firm set for itself.
Hammerdown produced 9,140 ounces in the first eight months of the year, including almost 2,000 ounces in August alone. Management is now aiming for 20,000 to 25,000 ounces a year. The mine created 65 new jobs, more than 90 per cent of them filled by people from Newfoundland and Labrador, and recorded no lost-time injuries during the build-up. There are also 350 active contract workers.
Hammerdown is the company’s first asset to reach this stage. Its larger Queensway project remains the flagship. Queensway holds roughly 2 million ounces and is well-funded for the first phase of development, with first ore expected at the mill in late 2027. Last year the firm moved decisively to rebuild confidence after a critical short-seller report from Iceberg Research in September of 2024. It installed a new board and management team of mine builders, published a formal resource estimate and economic study for Queensway, and bought the Hammerdown assets to generate early cash flow.
Hammerdown now sits as the smaller cash producer while Queensway advances.
Read more: NevGold adds new CFO ahead of Limousine Butte engineering study
Newfoundland’s mining sector sees increased activity
Strong prices for both gold and copper have sparked a wider revival across Newfoundland. Firefly Metals Ltd (TSE: FFM) (OTCMKTS: MNXMF) (ASX: FFM) released a new economic study on its Green Bay copper-gold project last month that showed a multi-billion-dollar value and a clear path back into production, sharply lowering the perceived risk.
Equinox Gold Corp‘s (TSE: EQX) (NYSEAMERICAN: EQX) (FRA: 1LRC) larger Valentine mine reached commercial output late last year and is now ramping toward full capacity, aiming for well over 125,000 ounces in 2026. It holds proven and probable reserves of 2.75 million ounces.
Meanwhile junior explorers such as Aumega Metals Ltd (CVE: AUM) (OTCMKTS: AUMMF) (FRA: MA30), Rocky Shore Gold Ltd. (CNSX: RSG) (OTCMKTS: RSGLF) (FRA: SY9) and Pirate Gold Corp (CVE: YARR) (OTCMKTS: YARRF) (FRA: T24) have stepped up field work and drilling, chasing new finds along the same productive belts.
These moves mark Newfoundland’s shift from quiet exploration ground to an active gold-producing region. New Found Gold’s first commercial ounces arrive amid that activity.
Read more: NevGold files technical report backing Limousine Butte gold-antimony resource
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