New Found Gold suspends exploration at Queensway due to fire risk

Published 13/08/2025, 22:06
New Found Gold suspends exploration at Queensway due to fire risk

VANCOUVER - New Found Gold Corp. (TSXV:NFG) (NYSE-A:NFGC), currently trading near its 52-week high at $88.05, announced Wednesday the temporary suspension of all exploration activities involving heavy equipment at its Queensway Gold Project in Newfoundland and Labrador, Canada due to extreme forest fire conditions in the region.

The company has halted drilling, mulching and excavating operations in or near forested areas as the Fire Weather index across Newfoundland is classified as Extreme or Very High, with several major fires burning throughout the province.

"At this time, our thoughts are with our employees and contractors, our local communities, and the people of Newfoundland and Labrador," said Keith Boyle, Chief Executive Officer of New Found Gold, in a press release statement.

New Found Gold, with a market capitalization of $7.95 billion and maintaining a strong financial health score according to InvestingPro, holds a 100% interest in the Queensway project, which covers 175,450 hectares along a 110 km strike extent across two fault zones in Newfoundland. The company completed an initial Mineral Resource Estimate and Preliminary Economic Assessment for the project earlier this year.

The company indicated it would provide additional information regarding the suspension when available.

New Found Gold’s shareholder base includes a 19% holding by Eric Sprott, according to the company’s statement.

In other recent news, New Found Gold Corp. announced the results of a Preliminary Economic Assessment (PEA) for its Queensway Gold Project in Newfoundland and Labrador. The PEA suggests a phased development with an initial capital cost of $155 million, aiming to produce an average of 69,300 ounces of gold annually during the first four years at an all-in sustaining cost of US$1,282 per ounce. Additionally, New Found Gold reported high-grade drilling results from its 2025 Work Program at the Queensway Gold Project, with significant gold intercepts in the Keats West zone. Meanwhile, National Fuel Gas has seen a positive shift in its stock rating, as BofA Securities upgraded the company from Underperform to Buy, raising the price target to $107.00. This upgrade is attributed to improved productivity in the company’s Eastern Development Area, acquired from Shell in 2020. Furthermore, National Fuel Gas announced the appointment of Donna L. DeCarolis as a consultant following her retirement as President of National Fuel Gas Distribution Corporation in July 2025. DeCarolis will serve as a policy consultant and member of the New York State Climate Action Council for three years, advising on energy policy matters and legislative initiatives. These developments provide key insights into the strategic directions of both companies.

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