NEW GOLD ANNOUNCES COMMERCIAL PRODUCTION AT NEW AFTON'S C-ZONE AND FIRST ORE FROM RAINY RIVER UNDERGROUND MAIN AHEAD OF SCHEDULE
New Gold Inc (TSX/NYSE: NGD) announced two major milestones: commercial production achievement at New Afton's C-Zone and first ore extraction from Rainy River Underground Main, both ahead of schedule. At New Afton, the C-Zone's materials handling system and gyratory crusher are now operational, with 18 draw bells constructed, targeting processing rates of 14,500 tonnes per day by 2026. At Rainy River, Underground Main development has commenced, aiming for 5,500 tonnes per day production by 2027. The company completed key infrastructure including the main fresh air raise and in-pit portal in Q3. Both projects are expected to drive significant production growth and cost reduction.
New Gold Inc (TSX/NYSE: NGD) ha annunciato due importanti traguardi: il raggiungimento della produzione commerciale nella zona C del New Afton e la prima estrazione mineraria dal Rainy River Underground Main, entrambi anticipati rispetto al programma. Presso New Afton, il sistema di gestione dei materiali della zona C e il frantoio verticale sono ora operativi, con 18 campane di estrazione costruite, mirano a tassi di lavorazione di 14.500 tonnellate al giorno entro il 2026. Presso Rainy River, è iniziato lo sviluppo dell’Underground Main, con l'obiettivo di produrre 5.500 tonnellate al giorno entro il 2027. L'azienda ha completato importanti infrastrutture, tra cui il principale pozzo d'aria fresca e il portale in-cava nel terzo trimestre. Entrambi i progetti dovrebbero portare a una significativa crescita della produzione e a una riduzione dei costi.
New Gold Inc (TSX/NYSE: NGD) anunció dos importantes hitos: el logro de la producción comercial en la zona C de New Afton y la primera extracción de mineral en Rainy River Underground Main, ambos por delante del cronograma. En New Afton, el sistema de manejo de materiales de la zona C y la trituradora giratoria están ahora en operación, con 18 campanas de extracción construidas, con el objetivo de alcanzar tasas de procesamiento de 14,500 toneladas por día para 2026. En Rainy River, se ha iniciado el desarrollo del Underground Main, con la meta de producir 5,500 toneladas por día para 2027. La compañía completó infraestructuras clave, incluyendo el principal conducto de aire fresco y el portal pit en el tercer trimestre. Se espera que ambos proyectos impulsen un crecimiento significativo de la producción y una reducción de costos.
New Gold Inc (TSX/NYSE: NGD)는 두 가지 주요 이정표를 발표했습니다: New Afton의 C존에서 상업 생산 달성 및 Rainy River Underground Main에서 첫 금속 추출, 두 가지 모두 예정보다 앞서 있습니다. New Afton에서는 C존의 자재 처리 시스템과 회전 분쇄기가 현재 가동 중이며, 18개의 추출 벨이 건설되어 2026년까지 하루 14,500톤의 처리 속도를 목표로 하고 있습니다. Rainy River에서는 Underground Main 개발이 시작되었으며, 2027년까지 하루 5,500톤 생산을 목표로 하고 있습니다. 이 회사는 3분기에 주요 공기 주택 및 인피트 포탈을 포함한 주요 인프라를 완료했습니다. 두 프로젝트 모두 생산 성장을 크게 촉진하고 비용 절감을 이끌 것으로 예상됩니다.
New Gold Inc (TSX/NYSE: NGD) a annoncé deux grandes étapes : l'atteinte de la production commerciale dans la zone C de New Afton et la première extraction de minerai du Rainy River Underground Main, toutes deux en avance sur le calendrier. À New Afton, le système de gestion des matériaux de la zone C et le concasseur giratoire sont désormais opérationnels, avec 18 cloches de prélèvement construites, visant des taux de traitement de 14.500 tonnes par jour d'ici 2026. À Rainy River, le développement de l’Underground Main a commencé, visant une production de 5.500 tonnes par jour d'ici 2027. L'entreprise a complété des infrastructures clés, y compris le principal puits d'air frais et le portail en carrière au troisième trimestre. Les deux projets devraient engendrer une croissance significative de la production et une réduction des coûts.
New Gold Inc (TSX/NYSE: NGD) hat zwei wichtige Meilensteine angekündigt: den Erreichung der kommerziellen Produktion in der C-Zone von New Afton und die erste Erzgewinnung aus dem Rainy River Underground Main, beides vor dem Zeitplan. In New Afton ist das Materialhandhabungssystem der C-Zone sowie der Kegelbrecher jetzt betriebsbereit, mit 18 Förderglocken, die gebaut wurden, mit dem Ziel, bis 2026 eine Verarbeitungsrate von 14.500 Tonnen pro Tag zu erreichen. In Rainy River hat die Entwicklung des Underground Main begonnen, mit dem Ziel, bis 2027 täglich 5.500 Tonnen zu produzieren. Das Unternehmen hat im dritten Quartal wesentliche Infrastrukturarbeiten wie den Hauptfrischluftschacht und das In-Pit-Portal abgeschlossen. Beide Projekte werden voraussichtlich ein signifikantes Produktionswachstum und Kostensenkungen vorantreiben.
- C-Zone achieved commercial production ahead of schedule with fully operational materials handling system
- Materials handling system has 24,000 tonnes per day design capacity
- New Afton targeting processing rates of 14,500 tonnes per day by 2026
- Rainy River's Underground Main development started ahead of schedule
- Tailings stabilization project trending ahead of target completion date
- Pond volumes reduced by 45% from start of year
- None.
Insights
This announcement marks significant operational milestones that substantially improve New Gold's production outlook. The C-Zone at New Afton achieving commercial production ahead of schedule, with its 24,000 tonnes per day materials handling capacity, represents a major advancement in operational efficiency. The completion of 18 draw bells enables self-cave propagation, which will drive down unit costs significantly.
At Rainy River, the early access to Underground Main development ore, combined with the completion of key infrastructure, positions the operation for stronger production metrics. The target of 5,500 tonnes per day by 2027 from underground operations is well-supported by the completed ventilation system and new portal access. The positive grade reconciliation at Intrepid zone, producing 1,000+ tonnes per day, indicates robust operational execution.
The automation initiatives at New Afton and the technical studies underway at both operations suggest potential for further operational optimization and resource expansion, particularly in the East Extension zone at New Afton.
These operational achievements will drive significant financial improvements through multiple channels. The early commissioning of C-Zone's materials handling system will immediately reduce operating costs, enhancing cash flow generation. The automated operations and efficient ore transportation system should lead to sustained cost advantages and improved margins.
The ahead-of-schedule progress at both mines indicates strong project execution and potential capex savings. The combination of higher-grade underground production at Rainy River and optimized operations at New Afton positions the company for improved financial performance in 2025-2027. The ongoing technical studies and resource conversion efforts could further extend mine life and enhance the company's valuation metrics.
Projects are Expected to Drive Significant Production Growth and Cost Reduction
C-Zone, New Afton's fourth block cave, achieved commercial production ahead of schedule with the materials handling system coming online in October and the cave footprint reaching the targeted hydraulic radius for self-cave propagation. Installation of the gyratory crusher and conveyor system was completed ahead of schedule and C-Zone is now set up for high capacity, low-cost, low-emission ore transportation for the life-of-mine. Additionally, construction of the C-Zone cave footprint has reached the targeted 18 draw bells for hydraulic radius. These two milestones are expected to have an immediate positive impact on unit operating costs and ultimately facilitate a ramp-up to previously achieved processing rates of more than 14,500 tonnes per day by 2026.
At
"Today's announcement highlights delivery of critical milestones at both of our growth projects, ahead of schedule." stated Patrick Godin, President and CEO. "At New Afton, safely achieving commercial production at C-Zone and commissioning of the crusher and conveyor system will have a meaningful and immediate impact on costs, which will translate to ongoing and annual sustained free cash flow generation. At
New Afton Achieves Commercial Production at C-Zone, Completes Installation of the Crusher-Conveyor System
- Installation of the C-Zone gyratory crusher was completed in October, approximately two months ahead of schedule. All other components of the materials handling system, including the reclaim apron feeder, conveyors, and transfer stations were previously completed. With installation of the crusher, the materials handling system is fully operational and performing as expected. The materials handling system has a design capacity approximately 24,000 tonnes per day.
- To date, 18 of a total 91 draw bells have been constructed at C-Zone, reaching the targeted cave footprint to achieve steady state self-cave propagation. This marks a transition point in the cave ramp-up schedule which allows New Afton to safely increase the draw rate from C-Zone while closely monitoring cave growth through the extensive instrumentation system.
- C-Zone is on-track to achieve the planned production ramp-up through the remainder of 2024 and 2025 while the B3 cave continues to perform as expected at a current mining rate of approximately 9,000 tonnes per day.
- C-Zone will be one of the most technologically advanced, low-emission underground mines in
Canada . The Integrated Operation Centre on surface is now complete and automation of production scoops at B3 is operational during shift-change. The automation system for C-Zone production is on track for completion in the first half of 2025, providing significant safety and productivity benefits. - The tailings stabilization project is trending ahead of the target completion date of year-end 2025. The piezometer network is showing a positive response to dewatering well operation and the performance of evaporators throughout the summer has reduced pond volumes by approximately
45% from the start of the year.
Rainy River Achieves First Ore from Underground Main and Completes Key Project Milestones
- In late September,
Rainy River advanced the first ore development rounds in Underground Main, marking a key milestone as the Company continues to establish additional mining zones and complete key infrastructure in preparation for the production ramp-up to approximately 5,500 tonnes per day from underground by 2027. - As previously reported, the main ventilation raise was completed on time in the third quarter, providing increased airflow to accommodate additional development headings at the 17 East and ODM East zones of Underground Main. Main fans and heaters are scheduled to be installed at the ventilation raise by summer 2025, completing the main fresh air infrastructure for the life-of-mine.
- The second access portal to the underground mine, at the eastern side of the open pit, was established in the third quarter. The ramp from the underground workings to the pit is expected to be connected by early 2025, providing a second means of egress from the underground mine and significantly reducing underground haulage distances.
- Underground mining at Intrepid continues to perform well, averaging more than 1,000 tonnes per day in September and with grades reconciling positively with the block model.
Technical Studies and Upcoming Catalysts
- The Company continues to make progress on value-adding technical studies at
Rainy River and New Afton, following successful exploration results at both operations throughout the year. The objective is to convert a portion of the significant mineral resources at each operation to mineral reserves and continue to expand the pipeline of mineral resources and exploration targets to establish an ongoing cycle of mineral reserves replacement. - At
Rainy River , following the addition of Phase 5 to open pit mineral reserves at the end of 2023, the Company continues to evaluate strategic opportunities to maximize value atRainy River and further extend open pit mining. Following the positive near-surface exploration results this year, and considering the higher gold price environment, the Company is evaluating the potential for further open pit pushbacks and/or satellite pits to further leverage the existing processing capacity and open pit mining fleet. - At New Afton, the Company continues to optimize the C-Zone cave draw plan, with the potential to increase mineral reserves at no additional capital expenditure, and advance the East Extension technical study, with the objective of adding a new high-grade zone to the east of the C-Zone block cave. East Extension has the potential to not only improve the New Afton copper and gold production profiles, but also to unlock other high-grade zones in the eastern sector of the mine, including K-Zone and HW Zone.
- The Company will report year-end 2024 mineral reserves and mineral resources in February 2025.
- An updated 3-year operational outlook will also be provided in February, supported by an investor and analyst technical session.
- Technical information for both operations will be provided in updated NI 43-101 Technical Reports in the first quarter of 2025.
About New Gold
New Gold is a Canadian-focused intermediate mining Company with a portfolio of two core producing assets in
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: successfully achieving high-capacity, low-cost, low-emission ore transportation for the life-of-mine at C-Zone; successfully achieving the expected immediate positive impacts on unit operating costs, production and processing rates resulting from achieving the noted milestones; successfully achieving processing rates of more than 14,500 tonnes per day by 2026 at New Afton; successfully generating ongoing and sustained free cash flow moving forward; expectations regarding Underground Main being an important source of higher-grade production in the coming years; successfully commencing stoping in the first half of 2025 for the Underground Main project and ramping up underground production rate to approximately 5,500 tonnes per day by 2027; expectations regarding safely increasing the draw rate from C-Zone moving forward and successfully achieving planned production ramp-up through the remainder of 2024 and 2025; expectations regarding C-Zone being one of the most technologically advanced, low emission underground mines in
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 such forward-looking statements are discussed in this news release, its most recent Annual Information Form and NI 43-101 Technical Reports on the Rainy River Mine and New Afton Mine filed on SEDAR+ at www.sedarplus.ca 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 news release are also subject to the following assumptions: (1) there being no significant disruptions affecting New Gold's operations, including material disruptions to the Company's supply chain, workforce or otherwise; (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 and the grade of gold, silver and copper expected to be mined; (4) the exchange rate between the Canadian dollar and
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: price volatility in the spot and forward markets for metals and other commodities; discrepancies between actual and estimated production, between actual and estimated costs, between actual and estimated Mineral Reserves and Mineral Resources and between actual and estimated metallurgical recoveries; equipment malfunction, failure or unavailability; accidents; 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; 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, including, but not limited to: uncertainties and unanticipated delays associated with obtaining and maintaining necessary licenses, permits and authorizations and complying with permitting requirements; changes in project parameters as plans continue to be refined; changing costs, timelines and development schedules as it relates to construction; the Company not being able to complete its construction projects at the Rainy River Mine or the New Afton Mine on the anticipated timeline or at all; volatility in the market price of the Company's securities; changes in national and local government legislation in the countries in which New Gold does or may in the future carry on business; compliance with public company disclosure obligations; controls, regulations and political or economic developments in the countries in which New Gold does or may in the future carry on business; the Company's dependence on the Rainy River Mine and New Afton Mine; the Company not being able to complete its exploration drilling programs on the anticipated timeline or at all; inadequate water management and stewardship; tailings storage facilities and structure failures; failing to complete stabilization projects according to plan; geotechnical instability and conditions; disruptions to the Company's workforce at either the Rainy River Mine or the New Afton Mine, or both; significant capital requirements and the availability and management of capital resources; additional funding requirements; diminishing quantities or grades of Mineral Reserves and Mineral Resources; actual results of current exploration or reclamation activities; uncertainties inherent to mining economic studies including the Technical Reports for the Rainy River Mine and New Afton Mine; impairment; unexpected delays and costs inherent to consulting and accommodating rights of First Nations and other Indigenous groups; climate change, environmental risks and hazards and the Company's response thereto; ability to obtain and maintain sufficient insurance; actual results of current exploration or reclamation activities; fluctuations in the international currency markets and in the rates of exchange of the currencies of
Technical Information
All scientific and technical information contained in this news release has been reviewed and approved by Yohann Bouchard, Executive Vice President and Chief Operating Officer of New Gold. Mr. Bouchard is a Professional Engineer and a member of the Professional Engineers of
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SOURCE New Gold Inc.
FAQ
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