New Found Gold Declares Commercial Production at Hammerdown Gold Mine
News related to:New Found Gold Corp · 3 min read
New Found Gold Corp. has announced the commencement of commercial production at its Hammerdown Gold Mine, located in Central Newfoundland, Canada. The milestone was achieved on August 19, 2026, marking a significant step in the company's journey towards becoming a mid-tier gold producer in Canada.
According to the press release, commercial production was officially declared after meeting three key criteria over a 60-day period. These criteria included a throughput of at least 600 tonnes per day (tpd) at the Pine Cove Mill, a gold recovery rate of at least 80%, and a feed grade of at least 80% of the mine plan head grade, as outlined in the Hammerdown preliminary economic assessment (PEA).
The company reported an average throughput of approximately 748 tpd, 87.7% gold recovery, and an average feed grade of 2.92 grams of gold per tonne (g/t Au) over the 60 consecutive days. These figures indicate that Hammerdown has surpassed the initial benchmarks set by the PEA, which was conducted in February 2026.
Since the start of commercial production, Hammerdown has produced a total of 9,140 ounces of gold in the first eight months of 2026, with a significant 1,989 ounces of gold produced in August alone. The average realized sale price over this period was $6,271 per ounce of gold (approximately US$4,532/oz Au).
The company has also emphasized its commitment to safety, noting that during the ramp-up period, the mine and mill have recorded zero lost-time incidents after over 262,049 person-hours worked in 2026. This safety record underscores the dedication of the operations team and the company's focus on maintaining a safe working environment.
As of July 15, 2026, New Found Gold has a total workforce of 445 people at Hammerdown and Pine Cove, comprising 94 employees and 351 contractors. The company has created 65 new jobs and has hired all key positions, with over 90% of the new hires being from Newfoundland and Labrador (NL) and 60% of the workforce living within an hour's drive of their place of work.
The PEA, which was conducted in February 2026, estimated an after-tax net present value (NPV5%) of $199.2 million at a base case gold price and $415.1 million at an upside gold price of US$5,000/oz Au. The average life of mine cash costs and all-in sustaining costs (AISC) are estimated at US$2,149/oz Au and US$2,429/oz Au, respectively.
Looking ahead, New Found Gold plans to convert and expand the Pine Cove Mill from its current 700 tpd flotation-leach-Merrill-Crowe circuit to a 1,400 tpd gravity-carbon-in-leach (Gravity-CIL) circuit. The company has received the permit amendment to convert the circuit to Gravity-CIL and is applying for the permit to expand to 1,400 tpd. The circuit conversion is expected to be completed by the fourth quarter of 2026.
Additionally, the company is progressing with the construction of a crusher and sorter, which is scheduled for completion in the fourth quarter of 2026. This equipment is expected to reduce crushing costs and allow for the delivery of higher-grade material to the mill.
New Found Gold remains focused on advancing its flagship Queensway Gold Project to production. The company plans to provide annual guidance for Hammerdown and anticipates a run rate of 20,000 to 25,000 ounces of gold produced per year at an AISC of approximately US$2,500/oz Au, in line with the PEA.
In conclusion, the declaration of commercial production at Hammerdown marks a significant milestone for New Found Gold, setting the stage for the company to become a key player in the Canadian gold mining industry.