TSX and NYSE-listed New Gold reports strong fourth quarter operating results from its Rainy River and New Afton Mines.
Rainy River achieved annual revised gold production guidance and New Afton exceeding annual gold production guidance as well as achieving the high end of annual copper production guidance.
Fourth quarter and recent operational highlights:
- Total gold production for the quarter was 110,559 oz and 455,448 ozfor the year, including 97,428 oz and 315,483 oz, respectively, from continuing operations
- The Rainy River Mine reported best ever quarterly gold production of 77,202 oz, a 39% increase over the prior quarter. The stronger operational performance achieved in September continued into the fourth quarter with the last four months of the year contributing 45% of the 227,284 oz produced for the year, achieving revised annual guidance.
- The New Afton Mine delivered another solid quarter with gold production of 18,778 oz, contributing to annual production of 77,329 oz, which exceeded the high end of annual guidance. New Afton produced 20.8 million pounds of copper for the quarter and 85.1 million pounds for the year, achieving the high end of annual guidance.
- During the quarter, mine closure activities continued at the Cerro San Pedro Mine and 1,448 gold oz were recovered from residual leaching of the heap leach pads.
- Consistent with the renewed vision of repositioning the Rainy River Mine for long-term success, the company has adopted a disciplined approach to capital allocation as well as mine life optimization. Accordingly, New Gold management has deferred the 2019 underground mine development plan to 2020. During 2019, New Gold will launch a comprehensive review that includes alternative underground mining scenarios with the overall objective of reducing capital and improving the return on investment for the underground portion of the life of mine.
- An internally funded development strategy for the New Afton C-zone has been launched, which will extend mine life to 2030 with robust economics.
“We are pleased to report a strong fourth quarter at both Rainy River and New Afton,” says New Gold CEO, Renaud Adams.
“It is encouraging to see the improvement in overall performance achieved at Rainy River in the final four months of the year. This marks a pivotal turning point for Rainy River as we reposition the asset for long-term success.
“The stronger production delivered during these months allowed the operation to comfortably meet revised annual production guidance. The New Afton Mine reported solid quarter-over-quarter results throughout the year and exceeded annual gold production guidance while meeting the high end of annual copper production guidance.
“We begin 2019 on a positive note and we expect to build on the successes achieved at Rainy River in 2019 with a disciplined strategy of driving operational and cost efficiencies throughout the operation. It is with a renewed commitment that we have relaunched a development strategy for the New Afton C-zone which will significantly extend the mine life of this core asset and unlock its long-term value potential. We look forward to delivering positive results from both our core assets to create sustainable shareholder value.”
New Gold is a Canadian-focused intermediate gold mining company. The company has a portfolio of two core producing assets in top-rated jurisdictions, the Rainy River and New Afton Mines in Canada. The company also operates the Cerro San Pedro Mine in Mexico. In addition, it owns 100% of the Blackwater project located in Canada. New Gold’s objective is to be a leading intermediate gold producer, focused on the environment and social responsibility.