(All amounts are in U.S. dollars unless otherwise indicated)
April 13, 2021 – New Gold Inc. (“New Gold” or the “Company”)
(TSX and NYSE American: NGD) reports in-line first quarter
operational results for the Company as of March 31, 2021 and
provides an early-stage exploration update. The Company is also
providing details for the first quarter earnings conference call
and webcast that is scheduled for May 5, 2021 at 8:30 am Eastern
Time (details are provided at the end of this news release).
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20210413006178/en/
Figure 1: Drill holes location and
simplified geological interpretation on DIGEM resistivity anomaly
map. (Graphic: Business Wire)
New Gold begins 2021 as a much stronger company with a growing
production profile from the Rainy River Mine at lower costs, as
deferred capital projects have been completed and the mine
transitions to generating free cash flow. Following the receipt of
the Mines Act permit, the New Afton B3 zone will begin production
in the second quarter while current mining operations at New Afton
continue to ramp- up following the tragic mud-rush incident in
February. The focus in 2021 remains on further operational and cost
optimizations at both Rainy River and New Afton, launching B3
production, advancing C-Zone development at New Afton, and
following up on key targets from the exploration drilling
programs.
“During the quarter, the Rainy River Mine delivered to plan.
Waste stripping was strategically prioritized during the winter
months, which will set the mine up for higher grades and a stronger
production profile in the second half of the year. The New Afton
Mine continues to safely and sequentially ramp-up operations and we
look forward to initiating ore extraction from the B3 zone. I am
very proud of the progress the team has made at New Afton, and
coupled with the execution at Rainy River, we remain on-track to
achieve our annual guidance estimates,” stated Renaud Adams,
President & CEO. “Late last year, we re-launched exploration
drilling programs at both operations after an extended period of
inactivity. We are encouraged by the early-stage results to
date.”
Consolidated First Quarter and Recent Highlights
- Total production for the first quarter was 96,026 gold
equivalent1 ("gold eq.") ounces (66,650 ounces of gold, 187,224
ounces of silver and 13.8 million pounds of copper), in-line with
plan.
- The Rainy River Mine produced 56,513 gold eq. ounces (54,656
ounces of gold and 133,730 ounces of silver) for the quarter,
in-line with plan.
- The New Afton Mine produced 39,512 gold eq. ounces (11,994
ounces of gold and 13.8 million pounds of copper) for the quarter,
slightly below plan, as underground mining operations continue to
be safely and sequentially ramped-up following the tragic mud-rush
incident on February 2, 2021. (Refer to the Company's news releases
dated February 2, 4, 5, and 8, 2021 for further information).
- Anne Day, Vice President, Investor Relations will leave the
Company June 30, 2021, and all Investor Relations responsibilities
are now being assumed by Ankit Shah, Vice President, Strategy &
Business Development.
Consolidated First Quarter Operational Results
Q1 2021
2021 Guidance
Gold eq. production (ounces)1
96,026
440,000 - 490,000
Gold production (ounces)
66,650
322,000 - 352,000
Copper production (Mlbs)
13.8
56 – 66
1. Total gold eq. ounces include silver and copper produced
converted to a gold eq. based on a ratio of $1,800 per gold ounce,
$25.00 per silver ounce and $3.50 per copper pound used for 2021
guidance estimates. All copper is produced by the New Afton
Mine.
1. See "Non-GAAP Measures" section of this news release.
Rainy River Mine Operational Highlights
Rainy River Mine Highlights
Rainy River Mine
Q1 2021
2021 Guidance
Gold eq. production (ounces)1
56,513
275,000 – 295,000
Gold eq. sold (ounces)
53,577
Gold production (ounces)
54,656
270,000 – 290,000
Gold sold (ounces)
51,796
1. Gold eq. ounces for Rainy River in Q1 2021 includes 133,730
ounces of silver converted to a gold eq. based on a ratio of $1,800
per gold ounce and $25.00 per silver ounce used for 2021 guidance
estimates.
Rainy River Mine Operating KPI’s
Rainy River Mine (Open Pit
Mine only)
FY 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Tonnes mined per day (ore and
waste)
118,404
127,684
126,512
145,701
158,638
150,767
Ore tonnes mined per day
18,712
26,012
23,101
36,515
42,918
35,681
Operating waste tonnes per
day
73,702
75,596
72,575
62,818
73,921
65,643
Capitalized waste tonnes per
day
25,990
26,077
30,836
46,368
41,799
49,442
Total waste tonnes per day
99,692
101,673
103,411
109,186
115,720
115,085
Strip ratio (waste:ore)
5.33
3.91
4.48
2.99
2.70
3.23
Tonnes milled per calendar
day
21,980
18,441
23,880
26,998
26,999
26,301
Gold grade milled (g/t)
1.08
1.03
0.78
0.88
0.93
0.80
Gold recovery (%)
91
90
89
89
90
89
Mill availability (%)
88
91
90
90
94
89
Gold production (oz)
253,772
50,381
48,800
63,004
66,734
54,656
Gold eq. production1 (oz)
257,051
51,106
49,633
64,221
68,241
56,513
1. Gold eq. ounces for Rainy
River in Q1 2021 includes 133,730 ounces of silver converted to a
gold eq. based on a ratio of $1,800 per gold ounce and $25.00 per
silver ounce used for 2021 guidance estimates.
In 2021, the Rainy River Mine is expected to achieve production
increases and decreases in both operating and capital costs as it
transitions to generating sustainable free cash flow. During the
year, the focus will remain on further operational and cost
optimizations and the continued conversion of underground reserves
for inclusion in an optimized underground mine plan. Production is
expected to be lower in the first half of the year due to planned
lower grades as the mine plan focuses on waste stripping.
Production is expected to increase in the second half of the year
as grades improve, as mining returns to the planned higher-grade
Phase 2 area of the pit. Sustaining capital is expected to be lower
in 2021 as key deferred capital projects were completed in 2020.
Growth capital for the year is expected to increase over 2020 as
the decline development towards the Intrepid underground ore zone
advances over the year.
- Our COVID-19 response continued to be effective with the
implementation of rapid testing at Rainy River. The site had two
COVID-19 cases in the quarter. Contact tracing was completed by the
site team and through Public Health. The individuals were isolated
immediately, and all other close contacts tested negative. These
isolated cases posed minimal risk to the operation. As of today,
two employees have tested non-negative with the in-house PCR device
and the mine is awaiting confirmation from Public Health. Further
information on the Company’s response to COVID-19 is available via
the following link: https://newgold.com/covid-19/.
- First quarter gold eq. production was 56,513 ounces (54,656
ounces of gold and 133,730 ounces of silver). Lower grades were
expected during the quarter as mining operations were focused on
Phase 3 stripping to bring pit walls to the final pit limit. During
the second half of the year, grades are expected to increase as the
mine returns to Phase 2 area of the pit.
- During the quarter, the open pit mine achieved 150,767 tonnes
per day, a decrease over the prior quarter due to lower drilling
rates as a result of extreme winter weather conditions, but in-line
with the 2021 target of ~151,000 tonnes per day. Approximately 3.2
million ore tonnes and 10.4 million waste tonnes (including 4.4
million capitalized waste tonnes) were mined from the open pit at
an average strip ratio of 3.23:1. During the second half of the
year, the strip ratio is expected to decrease as operations return
to Phase 2 area of the pit.
- The mill processed 26,301 tonnes per day for the quarter,
slightly above plan. The mill continued to process ore directly
supplied by the open pit combined with ore from the medium grade
stockpile and processed an average grade of 0.80 grams per tonne at
a gold recovery of 89%. Mill availability for the quarter averaged
89%, lower than the prior quarter due to planned maintenance
activities.
- At the end of the quarter, development of the decline towards
the Intrepid underground ore zone advanced 650 metres. The first
ore level was accessed and approximately 155 metres of development
in ore was completed with tonnes and grades mined reconciling with
the block model. Approximately 16,000 tonnes of development ore at
1.20 grams per tonne has been stockpiled.
New Afton Mine Operational Highlights
New Afton Mine Highlights
New Afton Mine
Q1 2021
2021 Guidance
Gold eq. production (ounces)1
39,512
165,000 – 195,000
Gold eq. sold (ounces)
38,241
Gold production (ounces)
11,994
52,000 – 62,000
Gold sold (ounces)
11,744
Copper production (Mlbs)
13.8
56 – 66
Copper sold (Mlbs)
13.3
1. Gold eq. ounces for New Afton in Q1 2021 includes 13.8
million pounds of copper and 53,494 ounces of silver converted to a
gold eq. based on a ratio of $1,800 per gold ounce, $3.50 per
copper pound and $25.00 per silver ounce used for 2021 guidance
estimates.
New Afton Mine Operating KPI’s
New Afton Mine
FY 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Tonnes mined per day (ore and
waste)
15,620
16,727
15,358
17,249
17,259
11,395
Tonnes milled per calendar
day
15,300
15,377
14,240
15,483
15,358
13,564
Gold grade milled (g/t)
0.47
0.45
0.46
0.44
0.46
0.39
Gold recovery (%)
82
81
81
80
79
79
Gold production (oz)
68,785
16,409
15,494
15,955
16,362
11,994
Copper grade milled (%)
0.78
0.73
0.72
0.71
0.73
0.64
Copper recovery (%)
83
82
83
82
81
80
Copper production (Mlbs)
79.4
18.5
16.9
18.2
18.5
13.8
Mill availability (%)
97
98
92
98
99
96
Gold eq. production1 (oz)
229,091
52,329
48,446
51,315
52,326
39,512
1. Gold eq. ounces for New Afton
in Q1 2020 includes 13.8 million pounds of copper and 53,494 ounces
of silver converted to a gold eq. based on a ratio of $1,800 per
gold ounce, $3.50 per copper pound and $25.00 per silver ounce used
for 2021 guidance estimates.
The 2021 mine plan for New Afton was adjusted following the
tragic mud-rush event that occurred on February 2, 2021 (for
further details, refer to the Company's guidance news release dated
February 18, 2021). Underground mining activities are currently
being safely and sequentially ramped-up as we continue to maintain
our focus on the health, safety and wellbeing of our people. 2021
mine plan contemplates lower tonnes mined from the recovery level,
as mining operations will be limited to remote mucking activities.
Mining in the other areas of Lift 1, including the West Cave, East
Cave and Pillar, ramped-up during the quarter and returned to
pre-incident mining rates at the end of the quarter.
- New Afton implemented wearable contact tracing technology and
is in the process of achieving rapid testing accreditation as
outlined by the Government of British Columbia. New Afton continues
to take all precautions to protect employees and contractors from
COVID-19. The mine had four positive cases in the quarter, and all
have recovered. Contact tracing was completed by the site team and
through Public Health and the individuals were isolated
immediately. There are currently no active cases of COVID-19 at the
New Afton Mine. Further information on the Company’s response to
COVID-19 is available via the following link:
https://newgold.com/covid-19/.
- First quarter gold eq. production was 39,512 ounces(11,994
ounces of gold, and 13.8 million pounds of copper).
- The underground mine averaged 11,395 tonnes per day for the
quarter, lower than previous quarters as underground operations
continued to ramp-up during the quarter following the tragic
mud-rush incident in February. Mining rates increased in March,
averaging approximately 16,200 tonnes per day, near pre-incident
mining rates.
- Following the receipt of the Mines Act permit, B3 production
will begin during the second quarter and ramp-up over the year as
more draw points become accessible.
- During the quarter, the mill averaged 13,564 tonnes per day,
and is currently incorporating the current surface stockpiles to
supplement the overall lower tonnes mined. The mill processed lower
than average gold and copper grades of 0.39 grams per tonne gold
and 0.64% copper, respectively, with gold and copper recoveries of
79% and 80%, respectively.
- During the quarter, C-Zone development advanced by
approximately 820 metres and the project remains on track.
- Construction of the TAT facility advanced during the quarter
and all major equipment and major building equipment is currently
on-site.
- Stabilization efforts advanced during the quarter, including
the completion of Phase 1 earthworks at the Historic Afton Tailings
Storage Facility as well as Phase 2 dewatering efforts.
Stabilization of the New Afton Tailings Storage Facility progressed
during the quarter and approximately thirteen dewatering wells are
targeted for installation by the end of the year.
- The C-Zone permit process was initiated with the
pre-application package submitted during the first quarter.
Exploration Update
Late in the fourth quarter of 2020, the Company launched
early-stage exploration drilling programs at the New Afton and
Rainy River Mines following an extended period of inactivity. The
targets at New Afton are within a large area, called the "Cherry
Creek Trend" characterized by distinct clusters of coincidental
geophysical and soil geochemical anomalism, alteration variations,
major structures and both epithermal and porphyry style
mineralization signatures within the same rocks hosting New Afton
deposit. Targets at the "Rainy River North East Trend" are related
with coincidental geophysical and soil geochemical anomalism,
reactive host rocks and quartz veining centered along an
interpreted regional structural trend showing characteristic of
shear zone hosted style mineralization. Initial results have been
encouraging from both exploration programs, including the continued
confidence in potential epithermal and porphyry systems within the
Cherry Creek Trend as well the potential shear hosted
mineralization on the North East Trend. Based on the initial
results, follow-up drilling on key target areas are planned to be
completed during 2021. The Company expects to provide regular
updates on our exploration programs throughout the year.
New Afton Mine
The 2021 drilling program consists of the continuation of the
reconnaissance drilling program that was launched at the New Afton
Mine in October 2020, which was primarily focused on the
prospective Cherry Creek trend, located within three kilometers of
the New Afton mill (Figure 1). Additionally, underground drilling
within the mine footprint and surface reconnaissance exploration
over the company’s broader regional claim holdings has been planned
for 2021.
Cherry Creek Trend
The key objective of the Phase 1 reconnaissance drilling program
was to identify the potential sources and mineralization causing
the geochemical and geophysical anomalism that was previously
identified in 2019, particularly to assess the potential for
epithermal and gold-copper porphyry style deposits. Six drill holes
were designed to test near surface epithermal gold targets and
thirteen holes tested both near surface epithermal and deeper
porphyry gold-copper targets (Figures 2 and 3).
Results to date at Silica Hill, where several drill holes have
returned shallow intercepts of narrow gold and silver
mineralization within the preliminary geology model and alteration
domains interpreted, show characteristics of mineralization and
alteration patterns that halo gold-copper mineralized porphyry
systems similar to New Afton deposit. Follow-up drilling started
with a deeper hole in the priority target at the Silica Hill
area.
To date, 20 diamond drill holes totaling 10,518 metres have been
completed in the Cherry Creek trend area (Figures 1, 2 and 3).
Average length-of-hole was 515 metres at an average depth from
surface of approximately 430 metres. Assay results have been
received for 17 drill holes and results for the final 3 drill holes
are expected by the end of April (see Table 1 at the end of this
news release for full drilling results and Table 2 for drill collar
locations).
Highlights include (Figures 4 and 5):
- Alteration and mineralization intercepted within the Silica
Hill target is indicative of a potential porphyry system.
Alteration domains at Silica Hill target show distinctive
hydrothermal patterns vectoring to a potential deep mineralization
source from distal propylitic, to argillic, to white-mica and
dickite within and haloing a quartz-feldspar porphyry partially
bound by picrite.
- Silver mineralized banded quartz veins with anomalous copper
halos crosscutting argillic altered host laterally and beneath
Silica Hill.
- Gold mineralization hosted in ductile deformed
fuchsite-quartz-carbonate altered fine grained sedimentary rocks on
the footwall of the picrite unit at Silica Hill.
- Increased thickness of the quartz-feldspar porphyry including
increased pyrite content, gold and silver low level geochemical
signature(background) at depth and to the northwest of Silica
Hill.
- Geochronology quartz-feldspar porphyry dates matches the age
date of the alteration associated with sulfosalt, secondary
hypogene mineralization enrichment at New Afton deposit.
- Preliminary geological model interpreted the extent of the
picrite unit along the length of the Cherry Creek trend showing
similar geometry as the picrite bounding the New Afton ore
body.
The Phase 2 drilling program will focus on deeper drilling
within the interpreted alteration domains on the Silica Hill
priority targets.
In March 2021, an underground drilling program commenced to test
three targets generated within the New Afton deposit footprint
based on an AI (Artificial Intelligence) study completed in 2020
(Figure 6). The program has been designed to complete up to 5,000
metres in 14 holes and is expected to be completed by August 2021.
To date, two holes have been completed on the AI West target
located approximately 500 metres west of the B3 block cave reserve,
where primary sulphide mineralization consisting of chalcopyrite of
greater than 1% has been visually described within two continuous
intervals of 45 and 34 metres length down the hole (assay results
pending).
The reconnaissance exploration program is inclusive of
geochemical and geophysical surveys that have been designed to
further define drill ready targets within the company’s broader
regional claim holdings.
Rainy River Mine
An early-stage exploration program was launched at the Rainy
River mine in December 2020 that tested priority targets on the
north-east portion of the broader regional mineral tenure to
identify areas of potential gold mineralization and to define
targets for follow-up drill testing. The first phase of
reconnaissance drilling has been completed and follow-up drilling
is planned in the second half of 2021 as additional data is
compiled and interpretations of all reconnaissance drilling have
been completed.
North East Trend
The Company completed a reconnaissance drilling program designed
to test targets within areas of coincident geochemical soil
anomalies, magnetic geophysical anomalies, and evidence of quartz
veins and/or shear zones within the North East Trend area located
approximately 15 kilometres north from the Rainy River Mine site.
Since the commencement of drilling in December 2020, 11 diamond
drill holes totaling 4,023 metres have been completed (Figure 7)
and the phase 1 reconnaissance drilling program has been
finalized.
Assay results have been received for seven drill holes and
results for the last four drill holes are expected by the end of
April (see Table 3 at the end of this news release for full
drilling results and Table 4 for drill hole collar location).
Highlights include (all results are reported with interval
length down the hole):
- Hole RRNT-20-02: 0.42 g/t gold over 3.0 metres.
- Hole RRNT-20-04: 0.61 g/t gold over 3.8 metres, including 1.79
g/t gold over 0.7 metres.
To date, narrow intervals of low-grade gold mineralization has
been intercepted within four holes. One drill-hole intersected the
targeted shear zone with a 0.7 metres interval of 1.79 g/t gold.
The updated interpretation suggests that the shear zone is dipping
at 75 degrees to the west and is not subvertical as previously
thought and the inclined holes planned to the west potentially
missed to undercut the targeted structure.
Additional exploration activities have been planned to support a
follow-up drilling program, which includes a soil geochemical
survey, geological mapping and trenching to better define the
orientation, dip, width, and extent of the interpreted shear
zones.
First Quarter Conference Call and Webcast
The Company will host a webcast and conference call on May 5,
2021 at 8:30 am Eastern Time to discuss the Company's first quarter
financial and operating results.
- Participants may listen to the webcast by registering on our
website at www.newgold.com or via the following link
https://onlinexperiences.com/Launch/QReg/ShowUUID=86F834BF-D9B7-4993-A7DA-B27454E7FA65
- Participants may also listen to the conference call by calling
toll free 1-833-350-1329, or 1-236-389-2426 outside of the U.S. and
Canada, passcode 2491156.
- A recorded playback of the conference call will be available
until June 5, 2021 by calling toll free 1-800-585-8367, or
1-416-621-4642 outside of the U.S. and Canada, passcode 2491156. An
archived webcast will also be available until June 5, 2021 at
www.newgold.com.
About New Gold Inc.
New Gold is a Canadian-focused intermediate gold mining Company
with a portfolio of two core producing assets in Canada, the Rainy
River gold mine and the New Afton copper-gold Mines. The Company
also holds an 8% gold stream on the Artemis Gold Blackwater project
located in British Columbia and a 6% equity stake in Artemis. The
Company also operates the Cerro San Pedro Mine in Mexico (in
reclamation). New Gold's vision is to build a leading diversified
intermediate gold company based in Canada that is committed to
environment and social responsibility. For further information on
the Company, 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, results, outcomes 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”, “targeted”, “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: the Company’s
plans to grow production and generate free cash flow; the Company’s
production and sales; the Company’s plans to optimize operations
and costs at the Rainy River Mine and the New Afton Mine; the
timing of production from certain areas of the Rainy River Mine and
the New Afton Mine; the timing for completion for development
projects at the Rainy River Mine and the New Afton Mine; the timing
and scope of exploration drilling programs at the Rainy River Mine
and the New Afton Mine; and the timing of receipt of permits at the
New Afton Mine.
All forward-looking statements in this news release are based on
the opinions and estimates of management that, while considered
reasonable as at the date of this press release in light of
management’s experience and perception of current conditions and
expected developments, are inherently subject to important risk
factors and uncertainties, many of which are beyond New Gold’s
ability to control or predict. Certain material assumptions
regarding such forward-looking statements are discussed in this
news release, New Gold’s latest annual management’s discussion and
analysis (“MD&A”), its most recent annual information form and
technical reports on the Rainy River Mine and New Afton Mine filed
at www.sedar.com and on EDGAR at www.sec.gov. In addition to, and
subject to, such assumptions discussed in more detail elsewhere,
the forward-looking statements in this MD&A are also subject to
the following assumptions: (1) there being no significant
disruptions affecting New Gold’s operations other than as set out
herein; (2) political and legal developments in jurisdictions where
New Gold operates, or may in the future operate, being consistent
with New Gold’s current expectations; (3) the accuracy of New
Gold’s current mineral reserve and mineral resource estimates; (4)
the exchange rate between the Canadian dollar and U.S. dollar, and
to a lesser extent, the Mexican Peso, being approximately
consistent with current levels; (5) prices for diesel, natural gas,
fuel oil, electricity and other key supplies being approximately
consistent with current levels; (6) equipment, labour and materials
costs increasing on a basis consistent with New Gold’s current
expectations; (7) arrangements with First Nations and other
Aboriginal groups in respect of the New Afton Mine and Rainy River
Mine being consistent with New Gold’s current expectations; (8) all
required permits, licenses and authorizations being obtained from
the relevant governments and other relevant stakeholders within the
expected timelines; (9) there being no significant disruptions to
the Company’s workforce at either the Rainy River or New Afton Mine
due to cases of COVID-19 or any required self-isolation
requirements (due, among other things, to cross-border travel to
the United States or any other country); (10) the responses of the
relevant governments to the COVID-19 outbreak being sufficient to
contain the impact of the COVID-19 outbreak; (11) there being no
material disruption to the Company’s supply chains and workforce
that would interfere with the Company’s anticipated course of
action at the Rainy River Mine and the systematic ramp-up of
operations; (12) the long-term economic effects of the COVID-19
outbreak not having a material adverse impact on the Company’s
operations or liquidity position; and (13) Artemis Gold Inc. being
able to complete the remaining C$50 million cash payment due on
August 24, 2021 for the acquisition of the Blackwater project.
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 and the availability
and management of capital resources; additional funding
requirements; price volatility in the spot and forward markets for
metals and other commodities; fluctuations in the international
currency markets and in the rates of exchange of the currencies of
Canada, the United States and, to a lesser extent, Mexico;
discrepancies between actual and estimated production, between
actual and estimated mineral reserves and mineral resources and
between actual and estimated metallurgical recoveries; risks
related to early production at the Rainy River Mine, including
failure of equipment, machinery, the process circuit or other
processes to perform as designed or intended; fluctuation in
treatment and refining charges; changes in national and local
government legislation in Canada, the United States and, to a
lesser extent, Mexico or any other country in which New Gold
currently or may in the future carry on business; taxation;
controls, regulations and political or economic developments in the
countries in which New Gold does or may carry on business; 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 the permitting requirements of each jurisdiction in which New
Gold operates, the lack of certainty with respect to foreign legal
systems, which may not be immune from the influence of political
pressure, corruption or other factors that are inconsistent with
the rule of law; the uncertainties inherent to current and future
legal challenges New Gold is or may become a party to; diminishing
quantities or grades of mineral reserves and mineral resources;
competition; loss of key employees; rising costs of labour,
supplies, fuel and equipment; actual results of current exploration
or reclamation activities; uncertainties inherent to mining
economic studies; changes in project parameters as plans continue
to be refined; accidents; labour disputes; defective title to
mineral claims or property or contests over claims to mineral
properties; unexpected delays and costs inherent to consulting and
accommodating rights of Indigenous groups; risks, uncertainties and
unanticipated delays associated with obtaining and maintaining
necessary licenses, permits and authorizations and complying with
permitting requirements; disruptions to the Company’s workforce at
either the Rainy River Mine or the New Afton Mine, or both, due to
cases of COVID-19 or any required self-isolation (due to
cross-border travel, exposure to a case of COVID-19 or otherwise);
the responses of the relevant governments to the COVID-19 outbreak
not being sufficient to contain the impact of the COVID-19
outbreak; disruptions to the Company’s supply chain and workforce
due to the COVID-19 outbreak; an economic recession or downturn as
a result of the COVID-19 outbreak that materially adversely affects
the Company’s operations or liquidity position; there being further
shutdowns at the Rainy River or New Afton Mines; the Company not
being able to complete its construction projects at the Rainy River
Mine or the New Afton Mines on the timing described herein or at
all; the Company not being able to complete the exploration
drilling program to be launched at the Rainy River Mine and Cherry
Creek on the timing described herein or at all; Artemis Gold Inc.
not being able to make the remaining C$50 million cash payment due
in connection with its acquisition of the Blackwater Project on
August 24, 2021. 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 Annual Information
Form, MD&A and other disclosure documents filed on and
available at 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 materially differ from those
anticipated in such statements. All 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.
Technical Information
The scientific and technical information in this news release
under the heading “Exploration Update” and the tables and figures
below has been reviewed and approved by Mr. Michele Della Libera,
Director Exploration of New Gold. All other scientific and
technical information contained in this news release has been
reviewed and approved by Eric Vinet, Senior Vice President,
Operations of New Gold. Mr. Della Libera is a Professional
Geoscientist (P.Geo.) and Practicing Member of the Association of
Professional Geoscientists of Ontario and the Engineers and
Geoscientist of British Columbia. Mr. Vinet is a Professional
Engineer and member of the Ordre des ingénieurs du Québec. Mr.
Della Libera and Mr. Vinet are "Qualified Persons" for the purposes
of National Instrument 43-101 – Standards of Disclosure for Mineral
Projects. With respect to the scientific and technical information
in this news release under the heading “Exploration Update” and the
tables and figures below, Mr. Della Libera has verified the data
disclosed, including the exploration, analytical and testing data
underlying the information. His verification included a review of
the applicable assay databases and reviews of the assay
certificates. No limitations were imposed on Mr. Della Libera’s
verification process. New Gold maintains a Quality Assurance /
Quality Control (“QA/QC”) program at its New Afton mine operation
using industry best practices and is consistent with the QA/QC
protocols in use at all of the company’s exploration and
development projects. Key elements of New Gold’s QA/QC program
include chain of custody of samples, regular insertion of certified
reference standards and blanks, and duplicate check assays. Drill
core at New Afton is sampled commonly at 2 metres intervals or less
than 2 metres upon geological changes, halved and shipped in sealed
bags to Actlabs Laboratories in Kamloops, British Columbia. Drill
core at Rainy River is sampled at a regular 1.5 metres interval or
less than 1.5 metres upon geological changes, halved and shipped in
sealed bags to Actlabs Laboratories in Thunder Bay, Ontario.
Additional information regarding the company’s quality assurance
processes is set out in the New Afton and Rainy River NI 43-101
Technical Reports available at www.sedar.com.
For additional technical information on New Gold’s material
properties, including a detailed breakdown of Mineral Reserves and
Mineral Resources by category, as well as key assumptions,
parameters and risks, refer to New Gold’s Annual Information Form
for the year ended December 31, 2020.
Table 1: Cherry Creek Drill Assay Results (≥ 0.2 g/t Au and/or ≥
10 g/t Ag and interval as length down the hole)
Drill Hole
From
(metres)
To
(metres)
Interval
(metres)
Gold
(g/t)
Silver
(g/t)
Cu
(ppm)
CC20-001
0.0
348.2
348.2
No significant results
348.2
349.6
1.4
0.01
20.7
149
349.6
406.8
57.2
No significant results
406.8
407.6
0.8
0.24
0.2
55
407.6
430.0
22.4
No significant results
430.0
432.1
2.1
0.83
1.5
9
432.1
485.5
53.4
No significant results
CC20-002
0.0
429.6
429.6
No significant results
429.6
431.0
1.4
0.00
13.5
174
431.0
662.0
231.0
No significant results
CC20-003
0.0
574.0
574.0
No significant results
CC20-004
0.0
395.5
395.5
No significant results
395.5
397.0
1.5
0.00
48.2
172
397.0
461.5
64.5
No significant results
CC20-005
0.0
489.7
489.7
No significant results
CC20-006
0.0
440.5
440.5
No significant results
CC20-007
0.0
414.0
414.0
No significant results
CC20-008
0.0
401.0
401.0
No significant results
CC20-009
0.0
164.0
164.0
No significant results
CC20-010
0.0
609.5
609.5
No significant results
CC20-011
0.0
243.7
243.7
No significant results
243.7
244.5
0.8
0.00
12.3
99
244.5
425.3
180.8
No significant results
CC20-012
0.0
166.0
166.0
No significant results
166.0
172.0
6.0
0.45
1.3
20
172.0
176.7
4.7
No significant results
176.7
178.0
1.3
0.28
1.1
41
178.0
205.0
27.0
No significant results
CC20-013
0.0
707.0
707.0
No significant results
CC20-014
0.0
386.0
386.0
No significant results
386.0
388.0
2.0
0.21
3.8
56
388.0
393.7
5.7
No significant results
393.7
395.2
1.5
0.32
1.3
19
395.2
423.1
27.9
No significant results
423.1
424.1
1.0
0.35
0.4
139
424.1
465
40.9
No significant results
CC21-015
0.0
248.0
248.0
No significant results
248.0
251.4
3.4
0.44
0.3
79
251.4
267.7
16.3
No significant results
267.7
269.0
1.3
1.10
0.2
57
269.0
271.5
2.5
No significant results
271.5
273.0
1.5
0.21
0.3
72
CC21-016
0.0
825.1
825.1
No significant results
CC21-017
0.0
752.3
752.3
No significant results
CC21-018
0.0
127.0
127.0
No significant results
127.0
209.0
82.0
Assay Results Pending
209.0
361.0
152.0
No significant results
361.0
363.0
2.0
0.00
12.6
88
363.0
369.0
6.0
No significant results
369.0
371.0
2.0
0.00
18.0
97
371.0
474.2
103.2
No significant results
474.2
698.0
223.8
Assay Results Pending
CC21-019
0.0
750.0
750.0
Assay Results Pending
CC21-020
0.0
713.8
713.8
Assay Results Pending
Table 2: New Afton Drill holes collar coordinates
Target Area
Drill Hole
UTM_North (m)
UTM_East (m)
Elevation (masl)
Total Depth (m)
Azimuth (degrees)
Inclination (degrees)
Silica Hill
CC20-001
5614059.96
672427.53
719.63
485.50
249.07
-45.23
Silica Hill
CC20-002
5613456.04
673470.25
677.71
662.00
9.41
-45.40
Beaton
CC20-003
5616385.69
669095.08
703.69
574.00
230.20
-67.99
Silica Hill
CC20-004
5614062.40
672427.53
719.61
461.50
309.76
-46.16
Silica Hill
CC20-005
5613998.52
672516.61
712.22
489.68
239.95
-60.19
Silica Hill
CC20-006
5613997.45
672517.82
712.03
440.50
184.83
-75.04
Beaton
CC20-007
5616385.85
669098.03
704.07
414.00
150.03
-55.08
Silica Hill
CC20-008
5613454.77
673469.30
677.64
401.00
319.79
-50.09
Silica Hill
CC20-009
5613796.00
672205.00
740.00
164.00
209.76
-65.25
Silica Hill
CC20-010
5614178.22
672011.18
723.95
609.50
280.05
-45.09
Beaton
CC20-011
5616389.21
669098.41
704.12
425.29
43.93
-44.47
Silica Hill
CC20-012
5613796.00
672205.00
740.00
205.00
210.13
-85.03
Silica Hill
CC20-013
5613804.17
672199.47
729.64
707.00
12.27
-60.41
Silica Hill
CC20-014
5614176.49
672013.23
724.67
465.00
243.21
-56.63
Silica Hill
CC21-015
5613434.00
672788.00
725.00
273.00
219.92
-56.26
Silica Hill
CC21-016
5613434.00
672788.00
725.00
825.09
41.92
-50.04
Beaton
CC21-017
5617172.00
668672.00
640.00
752.33
200.00
-50
Silica Hill
CC21-018
5613434.00
672788.00
725.00
697.99
340.00
-60
Beaton
CC21-019
5617172.00
668672.00
640.00
750.00
148.92
-49.68
Table 3: Rainy River Drilling Results (reported ≥ 0.1 g/t Au and
intervals as length down the hole)
Drill Hole
From (m)
To (m)
Interval (m)
Gold (g/t)
RRNT-20-01
0.0
53.0
53.0
No significant results
53.0
54.5
1.5
0.13
54.5
149.0
94.5
No significant results
RRNT-20-02
0.0
119.1
119.1
No significant results
119.1
123.5
4.4
0.26
123.5
129.5
6.0
No significant results
129.5
132.5
3.0
0.42
132.5
203.0
70.5
No significant results
RRNT-20-03
0.0
117.5
117.5
No significant results
117.5
119.0
1.5
0.11
119.0
410.0
291.0
No significant results
410.0
411.5
1.5
0.11
411.5
431.0
19.5
No significant results
RRNT-20-04
0.0
18.5
18.5
No significant results
18.5
20.0
1.5
0.20
20.0
27.1
7.1
No significant results
27.1
30.9
3.8
0.61
includes
30.2
30.9
0.7
1.79
30.9
384.5
353.6
No significant results
384.5
386.0
1.5
0.38
RRNT-20-05
0.0
89.0
89.0
No significant results
RRNT-20-06
0.0
371.0
371.0
No significant results
RRNT-20-07
0.0
401.0
401.0
No significant results
RRNT-20-08
0.0
420.2
420.2
Assay Results Pending
RRNT-20-09
0.0
371.0
371.0
Assay Results Pending
RRNT-20-10
0.0
450.0
450.0
Assay Results Pending
RRNT-20-11
0.0
401.0
401.0
Assay Results Pending
Table 4: Rainy River North East Trend Drill holes collar
Coordinates
Drill Hole
UTM_North (m)
UTM_East (m)
Elevation (masl)
Total Depth (m)
Azimuth (degrees)
Inclination (degrees)
RRNT-20-01
5426888
436814
408.5
149
240
-45
RRNT-20-02
5426888
436814
408.5
203
239.4
-67
RRNT-20-03
5424238
434561
356.5
430
316.1
-45.1
RRNT-20-04
5423971
434790
393.8
430
316
-45.1
RRNT-20-05
5423891
434934
394.1
400
298
-45
RRNT-21-06
5423663
435017
410
371
299.5
-50.2
RRNT-21-07
5423972
434906
391.2
401
316.6
-50.1
RRNT-21-08
5424772
434814
357.5
420.2
318
-50
RRNT-21-09
5425917
437013
396
371
259.5
-45.1
RRNT-21-10
5425441
437084
400
450
259.7
-45.4
RRNT-21-11
5424979
436886
390
401
261.5
-45
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210413006178/en/
Ankit Shah Vice President, Strategy & Business
Development Direct: +1 (416) 324-6027 Email:
ankit.shah@newgold.com
New Gold (AMEX:NGD)
Historical Stock Chart
From Apr 2024 to May 2024
New Gold (AMEX:NGD)
Historical Stock Chart
From May 2023 to May 2024