New Found Gold (NFGC) Surges 6.67% as Metallurgical Test Exceeds 88% PEA Baseline Validating Project Viability

New Found Gold (NFGC) surged 2.56% on Tuesday, marking its fourth consecutive day of gains as the stock climbed to a level not seen since September 2025. The Canadian miner’s shares touched an intraday high with a 6.67% jump, reflecting renewed investor optimism driven by recent project developments.

The rally follows confirmation of an 89.2% gold recovery rate in Phase III metallurgical testing at the Queensway Gold Project in Newfoundland and Labrador. This result exceeded the 88% baseline used in the project’s Preliminary Economic Assessment (PEA), reinforcing the economic viability of the asset. The test also validated the project’s ability to produce a saleable gold concentrate, a critical step in reducing technical risks and confirming commercial potential.

Management emphasized that the outcomes align with the PEA’s technical assumptions, reducing uncertainty for stakeholders. The validated flowsheet, which outlines the processing method, eliminates the need for costly modifications, streamlining the path to production. These factors contributed to a 3% after-hours stock surge on September 2, signaling market confidence in the project’s de-risked profile.

New Found Gold has outlined plans for further testing in late 2025, including sensor-based sorting and flotation studies, to optimize the flowsheet ahead of the feasibility study. CEO Keith Boyle highlighted the importance of these efforts in supporting the project’s bankability, underscoring the company’s commitment to maximizing efficiency and shareholder value.

Strategically located in a mining-friendly jurisdiction, the Queensway Project benefits from existing infrastructure and recent discoveries that extend mineralization. These developments position the asset as a key growth driver, with potential to expand resources and extend mine life. Analysts note that the project’s high-grade resource and low-risk profile align with broader sector trends, including inflation-driven demand for gold as a hedge.

The stock’s recent performance reflects improved investor sentiment, with the rally supported by technical validation and strategic clarity. As the company advances the feasibility study, the focus remains on securing financing and demonstrating long-term profitability. With metallurgical risks mitigated and operational plans in place, New Found Gold is well-positioned to capitalize on favorable market conditions and execute its growth strategy.