New Found Gold (TSX: NFGC) has declared commercial production at its Hammerdown gold mine in Newfoundland. The mine reached the milestone on August 19 after meeting all three of its operating targets for 60 consecutive days.
Over that period, the Pine Cove mill averaged about 748 tonnes per day. That beat both the 600 tonne per day threshold and the mill’s 700 tonne per day nameplate capacity. Gold recovery averaged 87.7% against a target of 80%, and feed grade came in at 2.92 g/t, clearing the requirement of at least 80% of the mine plan head grade.
Hammerdown produced 9,140 ounces of gold in the first eight months of 2026, including 1,989 ounces in August. The company sold that gold at an average price of C$6,271 (US$4,532) per ounce.
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“Achieving commercial production at Hammerdown on schedule is a major milestone for New Found Gold and the next step toward becoming Canada’s next mid-tier gold producer,” said CEO Keith Boyle. “With commercial production underway at Hammerdown, we will continue to focus on delivering solid gold production, while advancing our flagship Queensway Gold Project to production.”
The company now expects Hammerdown to produce 20,000 to 25,000 ounces a year at all-in sustaining costs of about US$2,500 per ounce. That’s roughly US$2,000 below the average price New Found Gold has received so far this year.
The mine plan comes from a February 2026 preliminary economic assessment. It calls for a 13-year open pit operation processing 3.2 million tonnes at an average grade of 2.89 g/t, recovering 251,300 ounces of gold. The study gave an after-tax net present value of C$199.2 million at a 5% discount rate, rising to C$415.1 million at US$5,000 gold, with life-of-mine AISC of US$2,429 per ounce.
Upgrades are also underway. A crusher and ore sorter are on track to be finished in the fourth quarter of 2026. The company is also converting Pine Cove from a 700 tonne per day flotation circuit to a 1,400 tonne per day gravity-carbon-in-leach circuit, which is on schedule and on budget for completion in the fourth quarter of 2027.
New Found Gold last traded at $2.25 on the TSX.
