TORONTO, Sept. 6, 2017 /CNW/ - New Gold Inc. ("New Gold") (TSX:NGD) (NYSE American:NGD) today provides an update on the construction of the company's Rainy River project, located in northwestern Ontario. Both the project schedule and capital cost estimate remain in line with New Gold's current plan (announced in late January 2017).
Rainy River August Highlights
- The process plant underwent a successful closed loop mill test run with low grade ore
- Ball mill and SAG mill tested successfully up to nameplate capacity
- The mining rate during July averaged over 125,000 tonnes per day and accelerated to an average of over 135,000 tonnes per day in August
- Water management pond is complete
- All process facilities are mechanically complete
- Ball mill, SAG mill and the leach carbon-in-pulp process circuits are fully commissioned
- Water, tails and air systems in the plant are fully operational
- The refining portion of the process circuit is to be commissioned in mid-September
- Construction of the tailings management area (TMA) start-up cell is complete
- Earthworks are 90% complete
- Approval for design and construction of creek closures using sheet pile was received from the Ontario Ministry of Natural Resources and Forestry in August 2017
"We are very much looking forward to Rainy River's targeted start-up in the coming weeks," stated Hannes Portmann, President and Chief Executive Officer. "We made significant progress in August. Our mining rate increased to over 135,000 tonnes per day, we completed construction of the TMA start-up cell, and all process facilities are mechanically complete and in testing."
Consistent with New Gold's plan, the company should begin processing ore in mid-September. The estimated development capital cost from the beginning of this year to the targeted 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 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 (which transitioned to residual leaching in 2016), provide 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 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.
