New Gold Provides Update on Rainy River Project; Schedule and cost of capital stay on track
(All dollar figures are in US dollars, unless otherwise noted)
TORONTO, September 6, 2017 / CNW / – New Gold Inc. (“New Gold”) (TSX: NGD) (NYSE American: NGD) today provides an update on the construction of the Rainy River project, located in the northwest Ontario. The project schedule and estimated investment costs remain in line with New Gold’s current plan (announced late january 2017).
Rainy River August Highlights
- Processing plant successfully passed closed loop crushing test with low grade ore
- SAG Ball Mill and SAG Mill successfully tested up to rated capacity
- The extraction rate in July averaged over 125,000 tonnes per day and accelerated to an average of over 135,000 tonnes per day in August.
- The water management basin is completed
- All treatment facilities are mechanically complete
- Ball mill, SAG mill and coal leach pulp processing circuits are fully commissioned
- Plant water, tailings and air systems are fully operational
- The refining part of the process circuit must be commissioned in mid-September
- Construction of the tailings management area (TMA) start-up cell completed
- Earthworks are 90% complete
- Approval for the design and construction of creek closures using sheet piling was received from the Ontario Ministry of Natural Resources and Forestry in august 2017
“We are very much looking forward to Rainy River start-up targeted in the coming weeks ”, declared Hannes Portmann, President and CEO. “We made significant progress in August. Our extraction rate increased to over 135,000 tonnes per day, we completed construction of the TMA start-up cell and all processing facilities are mechanically completed and in operation. test course. ”
As per New Gold’s plan, the company is expected to start processing the ore in mid-September. The estimated development capital cost since the beginning of this year up to the target november 2017 commercial production remains $ 515 million.
Rainy River Project Photos
About New Gold Inc.
New Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and two major development projects. The new Afton mine at Canada, the Mesquite mine at United States, Peak Mines at Australia and the Cerro San Pedro mine in Mexico (which switched to residual leaching in 2016), equip the company with its current production base. In addition, New Gold owns 100% of the Rainy River and Blackwater projects located in Canada. New Gold’s goal is to be the leading intermediate gold producer, focused on the environment and social responsibility. For more information about the company, please visit www.newgold.com.
Caution Regarding Forward-Looking Statements
Certain information contained in this press release, including any information relating to the future financial or operational performance of New Gold, is “forward-looking”. All statements in this press release, other than statements of historical fact, that deal with events, results, outcomes or developments that New Gold expects to occur are “forward-looking statements”. Forward-looking statements are statements which are not historical facts and are generally, but not always, identified by the use of forward-looking terms such as “plans”, “expects”, “is expected”, “budget”, “Planned”, “targeted”, “believes”, “plans”, “intends to”, “anticipates”, “projects”, “potential”, “believes” or variations of these words and expressions or statements that certain actions, events or results “could”, “could”, “would”, “should”, “could” or “will be taken”, “occur” or “be achieved” or the negative connotation of these terms. forward-looking statements contained in this press release include, among other things, statements regarding: planned development activities for 2017 at the Rainy River Project, including the completion and commissioning of processing facilities; planned preparations for operations of the Rainy River project, including the rate of extraction and removal of overburden; targeted schedule for permits; a targeted schedule for commissioning, start-up, production and commercial production; and targeting the schedule for development and other activities related to the Rainy River project.
All forward-looking statements contained in this press release are based on the opinions and estimates of management as of the date on which such statements are made and are subject to significant risk factors and uncertainties, many of which are beyond the control of New Gold to control or predict. Certain material assumptions regarding these forward-looking statements are discussed in this press release, New Gold’s latest annual MD&A, the annual information form and technical reports filed with www.sedar.com and on EDGAR at www.sec.gov. In addition to, and subject to, these assumptions discussed in more detail elsewhere, the forward-looking statements in this press release are also subject to the following assumptions: (1) there are no significant disruptions affecting the operations of New Gold ; (2) political and legal developments in the jurisdictions in which New Gold operates, or may in the future operate, consistent with New Gold’s current expectations; (3) the accuracy of current estimates of New Gold’s mineral reserves and mineral resources; (4) the exchange rate between the Canadian dollar, the Australian dollar, the Mexican peso and the US dollar roughly in line with current levels; (5) the prices of diesel, natural gas, fuel oil, electricity and other key supplies being approximately consistent with current levels; (6) equipment, labor and material costs increase on a basis consistent with New Gold’s current expectations; (7) Agreements with First Nations and other Aboriginal groups with respect to the Rainy River Project are consistent with New Gold’s current expectations; and (8) all required permits, licenses and authorizations are obtained from relevant governments and other relevant stakeholders on time.
Forward-looking statements are necessarily based on estimates and assumptions which are inherently subject to known and unknown risks, uncertainties and other factors which may cause actual results, level of activity, performance or performance. achievements are materially different from those expressed or implied by these forward-looking statements. forward-looking statements. These factors include, but are not limited to: significant capital requirements and the availability and management of capital resources; additional financing needs; price volatility in spot and futures markets for metals and other commodities; fluctuations in international currency markets and currency exchange rates Canada, United States, Australia and Mexico; differences between actual and estimated production, between actual and estimated mineral reserves and mineral resources, and between actual and estimated metallurgical recoveries; fluctuation in processing and refining costs; changes in national and local legislation in Canada, United States, Australia and Mexico or any other country in which New Gold currently operates or may in the future operate; Taxation; political or economic controls, regulations and developments in the countries in which New Gold operates or may operate; the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and of complying with the permit requirements of each jurisdiction in which New Gold operates, including, but not limited to: in Canada, obtaining the necessary permits for the Rainy River project; lack of certainty about foreign legal systems, which may not be immune to the influence of political pressure, corruption or other factors incompatible with the rule of law; uncertainties inherent in the current and future legal challenges to which New Gold is or may become a party; decrease in quantities or grades of mineral reserves and mineral resources; competetion; uncertainties inherent in the cost estimates and the estimated schedule for the construction and start of production at River in the rain as expected ; loss of key employees; rising costs of labor, supplies, fuel and equipment; the actual results of current exploration or reclamation activities; uncertainties inherent in mining economic studies including feasibility studies for the Rainy River project; changes in project parameters as plans continue to be refined; accidents; labor disputes; defective title to claims or mining properties or disputes over claims to mining properties; delays and unforeseen costs inherent in the consultation and accommodation rights of Aboriginal groups; the risks, uncertainties and unforeseen delays associated with obtaining and maintaining the necessary licenses, permits and authorizations and meeting permit requirements. In addition, there are risks and dangers associated with exploration, development and mining activities, including environmental events and hazards, industrial accidents, unusual or unexpected formations, pressures, collapses, flooding and loss of gold bullion and the risks associated with starting production from a mine, such as River in the rain, (and the risk of inadequate insurance or inability to obtain insurance to cover those risks) as well as the “risk factors” included in New Gold’s annual information form, MD&A and other documents. information filed and available on www.sedar.com and on EDGAR at www.sec.gov. Forward-looking statements are not guarantees of future performance, and actual results and future events could differ materially from those anticipated in such statements. All forward-looking statements contained in this press release are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.
SOURCE New Gold Inc.
For further information: Julie Taylor, Director, Corporate Communications and Investor Relations, Direct: +1 (416) 324-6015, Email: [email protected]