New Gold hits production milestones in B.C., Ontario
New Gold Inc. (NGD-TSX, NYSE American) said it has completed significant production milestones at its New Afton copper-gold mine in British Columbia and the Rainy River gold mine in Ontario.
C-Zone, New Afton’s fourth block cave, achieved commercial production ahead of schedule with the materials handling system coming on line in October and the cave footprint reached the targeted hydraulic radius for self-cave propagation.
Installation of the gyratory crusher and conveyor system was completed ahead of schedule and C-zone is now set up for high-capacity, low-cost, low-emission ore transportation for the life of the mine.
Additionally, construction of the C-zone cave footprint has reached the targeted 18 draw bells for hydraulic radius. These two milestones are expected to have an immediate positive impact on unit operating costs and ultimately facilitate a ramp-up to previously achieved processing rates of more than 14,500 tonnes per day in 2026.
The announcement comes after New Gold reported consolidated production of 78,369 gold ounces and 12.6 million pounds of copper in the third quarter ended September 30, 2024. The all-in-sustaining cost per gold ounce was US$1,195 an ounce. That included 16,477 ounces of gold and 12.6 million pounds of copper from New Afton and 61,892 ounces of gold from Rainy River.
The company has guided investors to expect gold production of between 300,000 and 310,000 ounces this year and 50 to 60 million pounds of copper.
Meanwhile, at Rainy River, first development ore was mined from Underground Main, ahead of schedule. Underground Main contains the majority of the underground mineral reserves at Rainy River and will be an important source of higher-grade production in the coming years to supplement mill feel from the open pit and Intrepid underground zone. Mining of first ore follows the completion of the main fresh air raise and in-pot portal in the third quarter.
With these important milestones completed, the Underground Main project is on track to commence stoping in the first half of 2025 and rump up to an underground production rate of approximately 5,500 tonnes per day in 2027.
“Today’s announcement highlights the delivery of critical milestones at both of our growth projects, ahead of schedule,’’ said New Gold President and CEO Patrick Godin. “At New Afton, safely achieving commercial production at C-zone and commissioning of the crusher and conveyor system will have a meaningful and immediate impact on costs, which will translate to ongoing and annual sustained cash flow generation.’’
“At Rainy River, accessing first development ore from Underground Main marks a key milestone and the underground mine remains well positioned to achieve the 5,500 tonnes per day production target by 2027.”
Meanwhile, Godin said technical studies are under way at both operations with the objective of replacing depletion of mineral reserves and unlocking additional value.
New Gold shares eased 3.2% or 13 cents to $3.92. The shares trade in a 52-week range of $4.37 and $1.47.