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Queensway Mine, In Newfoundland and Labrador, Gathers Grade, 1.39 Million Ounces Indicated, 15-Year Plan and NPV of US$ 743 Million, Attracting Investors and Repositioning New Found Gold
A gold mine recently detailed in Canada is causing an intense rush for investments and production expectations, as it brings together high mineral grades, robust projections, and historical metal prices, with a direct impact on the strategy of the responsible company and the global market.
Located in Newfoundland and Labrador, the Queensway Project belongs to the miner New Found Gold and stands out for the high gold grades identified in recent drilling.
Estimated Resources and Deposit Quality
According to the Mineral Resource Estimate (MRE) and Preliminary Economic Assessment (PEA), the indicated resources total 1.39 million ounces, with an average grade of 2.40 g-t.
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This volume corresponds to 43.2 tons of contained gold, a significant number for a project still in the technical development phase.
Meanwhile, inferred resources reach 610,000 ounces, with an average grade of 1.77 g-t, expanding the growth potential of the identified mineral base.
Production Plan and Mine Life
The operational plan anticipates total extraction of 1.5 million ounces over an estimated 15-year project lifespan.
During the peak production period, between the 5th and 9th years, annual production is expected to revolve around 172,200 ounces.
This production curve supports relevant cash flow projections, especially in a scenario of high gold prices in the international market.
Costs, Prices, and Financial Return
In January, the price of gold surpassed US$ 4,600 per ounce, a decisive factor in enhancing the estimated profitability of the Canadian venture.
The initial investment for Phase 2 is estimated at US$ 442 million, while the total sustainable cost reaches US$ 1,256 per ounce produced.
With these parameters, the Net Present Value reaches US$ 743 million, considering a discount rate of 5%.
The Internal Rate of Return of 56.3% indicates accelerated recovery of the invested capital, strengthening the economic attractiveness of the project.
As a background, the deposit is part of a new gold frontier in Canada, a country historically significant in global gold production.
With information from Diário da Região.
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