VANCOUVER,
July 7, 2014 /CNW/ - New Gold Inc.
("New Gold") (TSX:NGD) and (NYSE MKT:NGD) today announces a
mid-year update of the New Afton C-zone mineral resource. The
C-zone is a continuation of the New Afton block cave that extends
along strike and below the B-zone reserve that is currently being
mined. The mid-year update builds upon the 2013 year-end C-zone
mineral resource estimate and includes the results of an additional
15,143 metres of drilling in 20 core holes. The updated resource
estimate will be used to evaluate the optimum extraction level
depth for a potential block cave mining plan for the C-zone that
could extend New Afton's mine life. The June
2014 C-zone Measured and Indicated contained gold resource
has increased by 24% and the contained copper resource by 29% when
compared to year-end 2013. The increase in gold and copper was
driven by the upgrading of Inferred resources into the Measured and
Indicated categories through infill drilling. The C-zone Measured
and Indicated gold and copper grades compare favourably to the
B-zone Measured and Indicated grades of 0.65 grams per tonne gold
and 0.91% copper.
New Afton C-Zone Mineral Resource
Estimate |
|
June 2014 Mineral
Resource |
|
Tonnes
(000s) |
Gold
(g/t) |
Silver
(g/t) |
Copper
(%) |
Gold
(Koz) |
Silver
(Koz) |
Copper
(Mlbs) |
Measured
Indicated |
931
33,941 |
0.94
0.76 |
1.7
1.9 |
1.06
0.86 |
28
832 |
51
2,084 |
22
646 |
Total Measured &
Indicated |
34,872 |
0.77 |
1.9 |
0.87 |
860 |
2,135 |
668 |
Inferred |
7,979 |
0.50 |
1.5 |
0.60 |
128 |
387 |
159 |
|
2013 Year-End Mineral
Resource |
|
Tonnes
(000s) |
Gold
(g/t) |
Silver
(g/t) |
Copper
(%) |
Gold
(Koz) |
Silver
(Koz) |
Copper
(Mlbs) |
Measured
Indicated |
618
25,223 |
0.75
0.84 |
1.5
2.0 |
0.91
0.91 |
15
678 |
30
1,589 |
12
504 |
Total Measured &
Indicated |
25,842 |
0.83 |
2.0 |
0.91 |
693 |
1,620 |
516 |
Inferred |
11,288 |
0.63 |
1.7 |
0.64 |
227 |
602 |
159 |
"It is exciting to see both the continued growth
of New Afton's global mineral resource as we target its deeper
extensions as well as the successful conversion of Inferred
resources to the Measured and Indicated categories as we confirm
the continuity of mineralization within the C-zone," stated
Mark Petersen, Vice President
Exploration. "With four drills currently active, we are already in
the midst of the second phase of our 2014 exploration program, the
results of which will be included in our 2014 year-end resource
update and will form the basis for an internal preliminary economic
evaluation."
The second phase of the 2014 C-zone exploration
program is focused on testing the potential to further expand and
upgrade the resource classification of the C-zone mineralization as
it extends laterally to the west. The second phase of drilling is
scheduled to include approximately 10,000 metres of drilling in 12
holes. New Gold's preliminary internal economic evaluation will
take into account the impact of the second phase of drilling on the
C-zone mineral resource and will draw upon the empirical data that
was collected during New Afton's successful construction, start-up
and operation.
New Gold plans to provide the results of the
C-zone resource update and preliminary economic evaluation in early
2015.
Notes to Mineral Resource
Statements
1) Mineral resources are classified as Measured,
Indicated and Inferred resources and are effective as of
June 27, 2014 and reported based on
the technical and economic parameters consistent with the methods
most suitable for their potential commercial exploitation. Measured
and Indicated mineral resources do not have demonstrated economic
viability. Inferred mineral resources have a greater amount of
uncertainty as to their existence and potential economic and legal
feasibility, do not have demonstrated economic viability, and are
exclusive of mineral reserves.
2) Mineral resources for New Afton are based on
the following estimation parameters and are reported at a lower
cut-off of 0.40% copper equivalent:
New Afton |
Gold |
Silver |
Copper |
Metal price |
US$1,400 per ounce |
US$24.00 per ounce |
US$3.25 per pound |
Metal recovery |
87.7% |
73.5% |
86.4% |
Net payable |
97% |
90% |
96% |
Refining costs |
US$6.00 per ounce |
US$0.50 per ounce |
US$0.075 per pound |
3) Additional details regarding mineral resource
estimation, classification, reporting parameters, key assumptions
and associated risks are provided in the company's New Afton NI
43-101 Technical Report and Annual Information Forms which are
available at www.sedar.com.
About New Gold Inc.
New Gold is an intermediate gold mining company.
The company has a portfolio of four producing assets and three
significant development projects. The New Afton Mine in
Canada, the Mesquite Mine in
the United States, the Peak Mines
in Australia and the Cerro San
Pedro Mine in Mexico, provide the
company with its current production base. In addition, New Gold
owns 100% of the Blackwater and
Rainy River projects, both in
Canada, as well as 30% of the El
Morro project located in Chile.
New Gold's objective is to be the leading intermediate gold
producer, focused on the environment and social responsibility. For
further information on the company, please visit
www.newgold.com.
Cautionary Note Regarding Forward-Looking
Statements
Certain information contained in this news
release, including any information relating to New Gold's future
financial or operating performance are "forward looking". All
statements in this news release, other than statements of
historical fact, which address events or developments that New Gold
expects to occur are "forward-looking statements". Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the use of forward-looking
terminology such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates",
"projects", "potential", "believes" or variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "should", "might" or "will be taken",
"occur" or "be achieved" or the negative connotation of such terms.
Forward-looking statements in this news release include, among
others, statements with respect to: planned activities for 2014 and
2015 related to the C-zone exploration and project evaluation; the
timing, outcomes and expected completion date of such activities;
the potential to block cave the C-zone and extend New Afton's mine
life; and estimation of mineral reserves and resources and the
realization of such estimates.
All forward-looking statements in this news
release are based on the opinions and estimates of management as of
the date such statements are made and are subject to important risk
factors and uncertainties, many of which are beyond New Gold's
ability to control or predict. Certain material assumptions
regarding our forward-looking statements are discussed in this news
release, New Gold's MD&As, its Annual Information Form and its
Technical Reports filed at www.sedar.com. In addition to, and
subject to, such assumptions discussed in more detail elsewhere,
the forward-looking statements in this news release are also
subject to the following assumptions: (1) there being no
signification disruptions affecting New Gold's exploration
activities; (2) political and legal developments in Canada being consistent with New Gold's
current expectations; and (3) the accuracy of New Gold's current
mineral reserve and resource estimates.
Forward-looking statements are necessarily based
on estimates and assumptions that are inherently subject to known
and unknown risks, uncertainties and other factors that may cause
actual results, level of activity, performance or achievements to
be materially different from those expressed or implied by such
forward-looking statements. Such factors include, without
limitation: significant capital requirements; price volatility in
the spot and forward markets for commodities; fluctuations in the
rates of exchange of the currencies of Canada and the
United States; changes in national and local government
legislation in Canada; controls,
regulations and political or economic developments in Canada; 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 complying with permitting requirements;
unexpected delays or costs associated with consulting and
accommodating the rights of First Nations and other Aboriginal
groups; the uncertainties inherent to current and future legal
challenges New Gold is or may become a party to; diminishing
quantities or grades of reserves and resources; loss of key
employees; actual results of current exploration; labour disputes;
and defective title to mineral claims or property or contests over
claims to mineral properties. In addition, there are risks and
hazards associated with the business of mineral exploration,
development and mining, including environmental events and hazards,
industrial accidents, unusual or unexpected formations, pressures,
cave-ins, flooding and gold bullion losses (and the risk of
inadequate insurance or inability to obtain insurance to cover
these risks) as well as "Risk Factors" included in New Gold's
disclosure documents filed on and available at www.sedar.com.
Forward-looking statements are not guarantees of
future performance, and actual results and future events could
materially differ from those anticipated in such statements. All of
the forward-looking statements contained in this news release are
qualified by these cautionary statements. New Gold expressly
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
events or otherwise, except in accordance with applicable
securities laws.
Cautionary Note to U.S. Readers Concerning
Estimates of Mineral Reserves and Mineral Resources
Information concerning the properties and
operations of New Gold has been prepared in accordance with
Canadian standards under applicable Canadian securities laws, and
may not be comparable to similar information for United States companies. The terms "Mineral
Resource", "Measured Mineral Resource", "Indicated Mineral
Resource" and "Inferred Mineral Resource" used in this news release
are Canadian mining terms as defined in the Canadian Institute of
Mining, Metallurgy and Petroleum ("CIM") Definition Standards for
Mineral Resources and Mineral Reserves adopted by CIM Council on
May 10, 2014 and incorporated by
reference in National Instrument 43-101 ("NI 43-101"). While
the terms "Mineral Resource", "Measured Mineral Resource",
"Indicated Mineral Resource" and "Inferred Mineral Resource" are
recognized and required by Canadian securities regulations, they
are not defined terms under standards of the United States
Securities and Exchange Commission. As such, certain
information contained in this news release concerning descriptions
of mineralization and resources under Canadian standards is not
comparable to similar information made public by United States companies subject to the
reporting and disclosure requirements of the United States
Securities and Exchange Commission.
An "Inferred Mineral Resource" has a great
amount of uncertainty as to its existence and as to its economic
and legal feasibility. Under Canadian rules, estimates of
Inferred Mineral Resources may not form the basis of feasibility of
pre-feasibility studies. It cannot be assumed that all or any
part of an "Inferred Mineral Resource" will ever be upgraded to a
higher confidence category. Readers are cautioned not
to assume that all or any part of an "Inferred Mineral Resource"
exists or is economically or legally mineable.
Under United
States standards, mineralization may not be classified as a
"Reserve" unless the determination has been made that the
mineralization could be economically and legally produced or
extracted at the time the Reserve estimation is made. Readers
are cautioned not to assume that all or any part of the Measured or
Indicated Mineral Resources that are not Mineral Reserves will ever
be converted into Mineral Reserves. In addition, the definitions of
"Proven Mineral Reserves" and "Probable Mineral Reserves" under CIM
standards differ in certain respects from the standards of the
United States Securities and Exchange Commission.
Technical Information
The scientific and technical information in this
news release has been reviewed and approved by Mark A. Petersen, Vice President, Exploration of
New Gold. Mr. Petersen is an AIPG Certified Professional Geologist
and a "Qualified Person" under National Instrument 43-101.
SOURCE New Gold Inc.