New Gold resumes surface operations at B.C. mine
New Gold Inc. [NGD-TSX, NYSE American] said Friday February 5 that while ensuring the health, safety and wellbeing of its employees and contractors, surface operations have resumed at its New Afton Mine 10 km west of Kamloops, southern British Columbia.
The mill facility and tailings operations were restarted on Thursday afternoon local time and the mill is currently processing ore from the live pile and intermediate-grade surface stockpile.
On February 2, 2021, the company reported that an individual employed by a drilling contractor to New Gold was involved in a fatal underground mud-rush incident. Two more employees received non-life-threatening injuries as a result of the incident.
New Gold said the mud-rush was localized underneath the Lift 1 cave in the isolated recovery zone area, which does not interact with other areas of the mine, including the B3 and C-Zone areas.
On Friday, the company said that while underground operations remain suspended, New Afton is working with the Ministry of Energy, Mines and Low Carbon Innovation on a plan to safely and sequentially resume underground mining operations, including the development of the B3 and C-Zone. The isolated recovery area where the mud-rush occurred will remain closed until it is safe to resume operations in that area.
On Friday, New Gold shares edged up 3.6% or $0.08 to $2.29 on volume of 1.6 million. The shares are currently trading in a 52-week range of $3.05 and 55 cents.
New Gold is a Canada-focused intermediate gold mining company which produced 486,141 gold equivalent ounces in 2019 (comprised of 322,557 ounces of gold, 596,452 ounces of silver, and 79.4 million pounds of copper). It’s key operating assets are the Rainy River mine, which is located northwest of Fort Frances, Ontario and the New Afton mine which is located west of Kamloops in British Columbia.
In 2020, production was 437,617 gold equivalent ounces (293,139 ounces of gold, 636,952 ounces of silver, and 72.1 million pounds of copper), an amount that represented the mid-range of he company’s revised annual production guidance.
New Afton produced 204,416 gold equivalent ounces (64,220 ounces of gold and 72.1 million pounds of copper) in 2020. Rainy River produced 233,201 gold equivalent ounces (228,919 gold equivalent ounces (228,919 ounces of gold and 361,862 ounces of silver).