05:25 PM EDT, 07/21/2025 (MT Newswires) -- New Found Gold ( NFGC ) after the close of trade Monday released a Preliminary Economic Assessment for the development of the AFZ Core on the company's Queensway Gold Project located near the town of Gander, Newfoundland and Labrador.

A statement noted the study is the first conceptual assessment of the potential economic viability of gold (Au) mineralization on the 175,450 hectare project.

Monday's statement highlighted a "solid" low-cost production profile from year one via a phased mine plan; early revenue potential, with initial gold production targeted for 2027 pending regulatory approval; and "significant" leverage to the gold price.

On total production, it cited 1.5 Million ounces (oz) Au over a 15-year life of mine at an average total cash cost of US$1,085/oz Au and an all-in sustaining cost of US$1,256/oz Au. On exploration upside, it cited "significant" resource expansion potential, both near-MRE and camp scale over 110-kilometer strike extent.

Keith Boyle, Chief Executive Officer, said: "We are pleased to deliver the first economic study for Queensway, just months after announcing an initial mineral resource estimate for the Project. The PEA reinforces our conviction that Queensway can become a low-cost, high-margin, cashflow generating mine. This is a significant step in achieving our goal of building and operating a gold mine in central Newfoundland.

"Since day one, the objective of the new management team at New Found Gold ( NFGC ) has been to advance Queensway to cash flow. The PEA outlines a phased approach with an initial small high-grade open pit mine with toll milling, followed by the construction of a larger on-site operation, which will include both open pit and underground mining. A phased project design provides for early gold revenue generation, processing of the highest-grade mineralized material at the start of the operation and in-pit tailings deposition. This unique combination of design elements allows for low initial capital investment, a rapid payback of that initial investment, using cashflow to grow the operation thereby providing for a superior rate of return, and minimizing dilution to shareholders.

"The infill, definition and exploration drilling, completion of the environmental baseline work, trade-off and further engineering studies will allow for rapid advancement of the phased Project."

The company's shares closed up $0.06, or 2.75%, to $2.24 on the TSX Venture Exchange.