New Found Gold Corp. [NFG-TSXV] said it has expanded the 2025 work program at its 100%-owned Queensway gold project in Newfoundland and Labrador.
The announcement comes after New Found recently closed the second and final tranche of $63 million bought deal financing. The offering consisted of 24.6 million charity flow-through shares that will quality as flow-through shares under the Income Tax Act (Canada) at a price of $2.29 per charity flow-through share, including the exercise in full of the underwriters overallotment option of 3.2 million Charity Flow-through common shares, and 4.37 million common shares priced at $1.63 per share.
With the recent closing of our bought deal financing, the company is well financed to expand our 2025 work program, said New Found President Melissa Render. The primary focus remains the key deliverables to advance Queensway on the path to development, she said. The work program will include 70,000 metres of drilling, along with engineering and environmental studies.
Back in March, 2025, New Found shares fell sharply after the company announced an initial mineral resource estimate for its Queensway Gold Project.
The company announced an indicated mineral resource of 18 million tonnes of grade 2.40 g/t gold, or 1.39 million ounces. On top of that is an inferred resources of 10.7 million tonnes of grade 1.77 g/t gold or 0.61 million ounces.
On Tuesday, the shares eased 1.5% or $0.03 to $1.99 and trade in a 52-week range of $4.98 and $1.34.
Following the completion of additional metallurgical test work a preliminary economic assessment (PEA) is planned for release in late second quarter, 2025, the company said.
In addition to the PEA, the company is conducting ongoing engineering studies, including metallurgical testwork and trade-off studies. Meanwhile, approximately 11,750 metres in 104 diamond drill holes has been drilled to date with five drill rigs currently on site.
The company said 80% of planned drilling is focused on resource definition and pre-development work, and 20% on exploration. Approximately 80% of the planned drilling at Queensway will be focused on infill drilling of inferred and unclassified mineralization within the pit shells of the AFZ core portion of the initial mineral resource estimate, grade control drilling at the Keats and Iceberg zones, and geotechnical hydrogeological and condemnation drilling. This work began in May, 2025, and is planned to continue through December, 2025.
A regional exploration program at Queensway South and Queensway North is underway, and is expected to run until late September, 2025.
The Queensway project covers approximately 1,500 square kilometres with the initial exploration focused on areas that can be accessed by the Trans-Canada Highway, about 15 kilometres west of Gander, Newfoundland.
The project is divided by Gander Lake into Queensway North and Queensway South.
The company has a new management team and solid shareholder base, including an approximately 19% holding by financier Eric Sprott.
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