Saturday, April 19, 2014

New Gold pleased by study

New Gold Inc. yesterday announced the results of its feasibility study for its Rainy River Project north of Barwick.
Through the second half of 2013, New Gold’s development team worked with third-party consultants to complete the study.

The purpose was to ensure the key inputs and assumptions used for Rainy River were consistent with those used for New Gold’s other projects and operations.
This feasibility study builds upon a study completed and filed by Rainy River Resources Ltd. on May 24.
New Gold successfully completed the acquisition of Rainy River Resources on Oct. 16.
Highlights of the feasibility study include:
•average annual gold production of 325,000 ounces, at total cash costs of $613 (U.S.) per ounce and all-in sustaining costs of $736 (U.S.) per ounce, for the first nine years;
•average mill head grade of 1.44 grams per tonne gold for the first nine years;
•life-of-mine gold and silver production of 3.4 million ounces and 6.0 million ounces, respectively, at total cash costs of $663 (U.S.) per ounce and all-in sustaining costs of $765 (U.S.) per ounce;
•development capital costs of $885 million, inclusive of a $70-million contingency; and
•a 14-year mine life with direct processing of open pit and underground ore, at a rate of 21,000 tonnes per day for first nine years, and processing of a combination of stockpile and underground ore thereafter.
Targeted commissioning of the project is set for late 2016, with the first year of full production in 2017.
“We are very pleased to have completed the feasibility study for our Rainy River Project,” said Randall Oliphant, executive chairman of New Gold.
“The results of the study are entirely consistent with our expectations when we decided to acquire Rainy River Resources,” he noted.
“The project provides our company with an asset that meets all of our key criteria, including solid returns with strong leverage to higher gold prices, manageable capital costs, a robust, long-lived production base with continued regional exploration potential, below industry average costs, and located in a great mining jurisdiction,” Oliphant added.
“The project team has done a great job advancing Rainy River to this stage,” lauded Robert Gallagher, president and CEO of New Gold.
“In parallel with this feasibility study, the Environmental Assessment report has also been finalized, and is scheduled to be released in the coming days for regulatory agency and stakeholder review,” he added.
“We look forward to progressing the project further through 2014.”
Editor’s note: New Gold is holding Environmental Assessment open houses on its Rainy River Project on Tuesday, Jan. 28 from 4-7 p.m. at the Barwick Hall and again on Wednesday, Jan. 29 from 4-7 p.m. at La Place Rendez-Vous here.

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