New Found Gold's Strategic Expansion and Resource Conversion Potential at the Queensway Gold Project

New Found Gold Corp. has emerged as a standout performer in the gold sector, driven by its aggressive drilling program at the Queensway Gold Project in Newfoundland and Labrador. Recent infill and expansion drilling at the K2 and Jackpot zones within the AFZ Core area has not only reinforced the project's technical robustness but also highlighted its strategic potential to convert inferred resources into higher-confidence indicated resources. With Newfoundland and Labrador's Tier-1 mining jurisdiction offering a stable regulatory environment and world-class infrastructure, the company's progress underscores compelling investment implications for resource-driven growth.

K2 Zone: A Catalyst for Resource Conversion

The K2 zone, a cornerstone of New Found Gold's Queensway project, has demonstrated exceptional continuity and expansion potential. In Q4 2025, the company completed 5,777 meters of drilling across 46 diamond drill holes, with results including a standout intersection of 2.38 g/t Au over 22.10 meters outside the Preliminary Economic Assessment (PEA) open pit shell. This intersection, along with the confirmed mineralized footprint of 490 meters in length and 395 meters in width, suggests significant upside beyond current resource estimates.

The drilling has defined mineralization to a vertical depth of 250 meters, with the zone remaining open to depth-a critical factor for expanding the project's economic viability. By converting inferred resources to indicated status, New Found Gold can enhance the bankability of its resource model, a key requirement for advancing to a feasibility study and eventual mine development. The company's 2025 program, now over 85% complete, is on track to finalize all proposed drilling by year-end, setting the stage for 2026 resource upgrades.

Jackpot Zone: Infill Drilling Validates Consistency

Complementing the K2 results, the Jackpot zone's infill drilling program has provided further confidence in the project's geological model. All assay results from the program have been received, showing strong correlation with existing resource models. This consistency reduces geological uncertainty and strengthens the foundation for resource conversion, a critical step in de-risking the project for investors.

The success at Jackpot also underscores the effectiveness of New Found Gold's drilling strategy, which prioritizes both infill and step-out targets to expand the AFZ Core's overall footprint. With the 2025 program nearing completion, the company is well positioned to leverage these data points in its 2026 exploration plans, potentially unlocking additional ounces in a region already characterized by high-grade mineralization.

Investment Implications: Tier-1 Jurisdiction as a Competitive Advantage

Newfoundland and Labrador's status as a Tier-1 mining jurisdiction is a cornerstone of New Found Gold's strategic positioning. According to a report by Crux Investor, the province consistently ranks among the top 10 globally in the Fraser Institute's Annual Survey of Mining Companies, a testament to its stable regulatory framework and supportive policy environment. The October 2025 Progressive Conservative majority government has further reinforced this narrative, emphasizing fiscal discipline and private-sector investment-a boon for companies navigating permitting and operational hurdles.

Infrastructure is another critical differentiator. The province's access to renewable hydroelectric power and established processing facilities reduces capital and operating costs, a factor that can significantly enhance project economics. For New Found Gold, this means lower energy expenditures and a more sustainable path to production, aligning with global trends toward ESG-compliant mining.

Historical project success in the region also bolsters confidence. Recent high-grade intersections at Canterra Minerals' Buchans project, such as 14.2 g/t Au over 5.6 meters, illustrate the district's potential for transformative discoveries. While New Found Gold's focus remains on resource conversion, the broader geological context suggests that the Queensway project could evolve into a multi-phase operation with long-term growth prospects.

Conclusion: A Compelling Case for Resource-Driven Growth

New Found Gold's drilling results at Queensway highlight a rare combination of technical execution and jurisdictional strength. The conversion of inferred resources to indicated status, coupled with the open-ended potential of the K2 and Jackpot zones, positions the company to deliver material upgrades in 2026. In a sector where political and operational risks often overshadow technical merit, Newfoundland and Labrador's Tier-1 credentials provide a critical edge.

For investors, the Queensway project represents more than a gold deposit-it is a blueprint for how strategic drilling, resource conversion, and jurisdictional advantages can converge to create value. As New Found Gold advances its dual-asset strategy, the path to a feasibility study and eventual production appears increasingly clear, making it a compelling candidate for those seeking exposure to high-conviction, resource-driven growth.