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New Gold has released the results of the updated life of mine plans for the Rainy River and New Afton mines.
New Gold (TSX:NGD,NYSEAMERICAN:NGD) has released the results of the updated life of mine plans for the Rainy River and New Afton mines.
As quoted from the press release:
The company is also providing updated mineral reserves and resources as of December 31, 2019.
Over the past year, the company has undertaken a comprehensive mine optimization study for the Rainy River mine that included a review of alternative open pit and underground mining scenarios with the overall objective of improving the return of investment and creating a life of mine plan that secures optimal profitability at a mineral reserve gold price of $1,275 per ounce. The Company is also releasing results of an integrated New Afton B3 and C-zone optimization life of mine study that is focused on de-risking the execution of the C-zone project, primarily targeting mine plan optimization and subsidence control, confirming capital requirements, finalization of the tailings disposal plan, dewatering and stabilization of the historic tailings area and advancing permitting efforts while maintaining a self-funded approach.
“Over the past number of months we have evaluated numerous scenarios for the Rainy River mine and are pleased to release an updated life of mine plan that delivers a solid open pit and underground mine plan that positions the operation for profitability and free cash flow generation beginning in Q4 2020 that continues over the balance of the mine lift,” said Renaud Adams, CEO. “We have also released an integrated mine plan that optimizes the self-funded development of New Afton’s B3 and C-Zone that could deliver significant free cash flow of more than 1 billion dollars over the life of mine. We now have a clear and profitable path forward for New Gold, a path that we are confident will create value for our shareholders.”