Hammerdown Cleared All Three Tests With Room to Spare

Commercial production is not a matter of judgment at Hammerdown, because the company set measurable thresholds in advance. The Pine Cove Mill had to run at a minimum of 600 tonnes per day, which is 85% of its 700 tonne per day nameplate capacity. Gold recovery had to hold at 80% or better. Feed grade had to reach at least 80% of the mine plan head grade set out in the Hammerdown preliminary economic assessment.

Over the 60 consecutive days ending August 19, the mill averaged roughly 748 tonnes per day, recovered 87.7% of contained gold and processed feed grading 2.92 grams of gold per tonne. Each figure cleared its threshold rather than scraping past it. Chief Executive Officer Keith Boyle called the achievement a major milestone and the next step toward becoming Canada's next mid-tier gold producer.

Nine Thousand Ounces Sold Into a Strong Gold Market

Hammerdown produced 9,140 ounces of gold in the first eight months of 2026, including 1,989 ounces in August alone. The average realized sale price across those eight months was C$6,271 per ounce, or roughly US$4,532 per ounce. Consequently, the ramp up coincided with unusually strong gold pricing, which lifts the value of every ounce poured during the period. Further production detail will appear in the company's third quarter 2026 financial statements.

Safety and staffing held up through the ramp as well. The mine and mill recorded zero lost time incidents across more than 262,049 person hours worked in 2026. As of July 15, 2026, the combined Hammerdown and Pine Cove workforce numbered 445 people, made up of 94 employees and 351 contractors. The company has created 65 new jobs to date, more than 90% of new hires come from Newfoundland and Labrador, and 60% of the workforce lives within an hour's drive of the site.

Crusher, Sorter and a Mill Conversion Come Next

With commercial production declared, New Found Gold anticipates a run rate of 20,000 to 25,000 ounces of gold per year at an all-in sustaining cost of approximately US$2,500 per ounce, in line with the preliminary economic assessment. Formal annual guidance for Hammerdown will follow in due course. Meanwhile, construction of a crusher and sorter is on schedule for completion in the fourth quarter of 2026, equipment the company expects will lower crushing costs and deliver higher grade material to the mill.

The larger change arrives a year later. New Found Gold plans to convert Pine Cove from its current 700 tonne per day flotation, leach and Merrill-Crowe circuit to a 1,400 tonne per day gravity carbon-in-leach circuit, with completion targeted for the fourth quarter of 2027. The permit amendment for the circuit conversion is already in hand, while the permit to expand throughput to 1,400 tonnes per day has yet to be applied for. Drilling below the current stage one pit is also underway ahead of an updated mineral resource estimate in 2027.

The February 2026 preliminary economic assessment frames the scale of the asset. It outlines a 13-year open pit operation processing 3.2 million tonnes at an average grade of 2.89 grams of gold per tonne for 251.3 thousand recovered ounces, with an after-tax net present value at a 5% discount rate of C$199.2 million at the base case gold price deck and C$415.1 million at an upside price of US$5,000 per ounce. Investors should weigh the study's own caution, however. The assessment is preliminary, it includes inferred mineral resources, and no mineral reserves have been defined for the project.

Strategic Investment Summary

• Commercial Production Declared: New Found Gold (NYSE American: NFGC) reached commercial production at the 100% owned Hammerdown Gold Mine on August 19, 2026, after holding three performance criteria for 60 consecutive days.
• Thresholds Cleared: Throughput averaged roughly 748 tonnes per day against a 600 tonne minimum, gold recovery reached 87.7% against an 80% minimum, and feed grade came in at 2.92 grams of gold per tonne.
• Ounces and Pricing: The mine produced 9,140 ounces of gold in the first eight months of 2026, including 1,989 ounces in August, at an average realized price of C$6,271 per ounce, or approximately US$4,532.
• Run Rate Guidance: The company anticipates 20,000 to 25,000 ounces of gold per year at an all-in sustaining cost of approximately US$2,500 per ounce, with formal annual guidance to follow.
• Capacity Doubling Underway: Pine Cove converts from a 700 tonne per day circuit to a 1,400 tonne per day gravity carbon-in-leach circuit by the fourth quarter of 2027, with a crusher and sorter due in the fourth quarter of 2026.
• Queensway Remains the Flagship: Hammerdown revenue supports the fully funded Phase 1 of the Queensway Gold Project, which sits on a district-scale land package covering more than 110 kilometres of strike length across two fault zones.

Find out more about the latest corporate developments and financial reports at the New Found Gold investor portal.

The post New Found Gold Declares Commercial Production at Hammerdown, Targeting 20,000 to 25,000 Ounces a Year appeared first on PRISM MarketView.

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