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New Gold Inc. Nears Completion of Environmental Assessment Process

Northwestern Ontario's Next Gold Mine One Step Closer to Reality

Oct 17, 2014

Northwestern Ontario’s latest gold mine is one step closer to becoming a reality as New Gold Inc. recently completed its draft federal and provincial environmental assessments reports and both reports are undergoing public consultation.

New Gold Inc. is proposing the construction, operation, and decommissioning of an open-pit and underground gold mine and on-site metal mill, located approximately 65 kilometres northwest of Fort Frances in the Township of Chapple, Ontario. Mining is proposed to occur for 15 to 20 years, with an ore production capacity of 27,000 tonnes per day. The on-site metal mill is proposed to have an ore input capacity of 21,000 tonnes per day. The project is expected to produce over 225,000 ounces of gold annually, at below industry average costs.

The projected construction costs stand at US $885 million. The gold mine is expected to be in production by 2017.

Federal Environmental Assessment

The federal draft environmental assessment has been submitted by New Gold to the Canadian Environmental Assessment Agency (CEAA) and the public has until November 8, 2014 to submit comments.

The Environmental Assessment document that includes the Agency's conclusions and recommendations regarding the potential environmental effects of the project, the proposed mitigation measures, the significance of any remaining adverse environmental effects, and the follow-up program. The Agency invites the public to comment on the potential conditions for the project. The Agency is contemplating potential conditions that may be applied in the event that the Minister of the Environment ultimately decides that the project may be permitted to proceed.

Provincial Environmental Assessment

Earlier, New Gold Inc. on Jan. 17, 2014 completed and submitted its provincial environmental assessment to the Ontario Ministry of Environment and Climate Change for review and decision. The public comment period ended March 7, 2014.  A ministry review was completed on September 8, 2014. A five-week comment period on the ministry review commenced on September 19, 2014 and ends on October 24, 2014.

The major proposed project components in New Gold’s operations include:

  • Open pit and underground mine;
  • Ore processing plant;
  • Maintenance shop, warehouse and administration complex;
  • Explosives manufacturing and storage facilities;
  • Stockpiles (overburden, run of mine ore, low-grade ore and mine rock );
  • Aggregate extraction;
  • Tailings management area;
  • Onsite access roads and pipelines, power infrastructure and fuel storage facilities;
  • Domestic and industrial waste handling;
  • Water management facilities, drainage works, including ponds, watercourse diversions and a constructed wetland;
  • Re-alignment of existing Highway 600; and
  • Offsite 230 kV transmission line.

Depending on the comments and concerned expressed during the public review the environmental assessment could be approved, approved with conditions or sent back to New Gold for further study and resolution of environmental concern.

Once the federal and provincial environmental assessments have been approved New Gold may apply to receive operating permits from the federal and provincial governments.

About New Gold

New Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and three 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, provide the company with its current production base and solid foundation. In addition, New Gold owns 100% of the Rainy River and Blackwater projects, both in Canada, as well as 30% of the El Morro project located in Chile. New Gold's objective is to be the leading intermediate gold producer, focused on the environment and social responsibility.

The project was initiated by Rainy River Resources. New Gold Inc. purchased Rainy River Resources in May, 2013.

To view the draft federal Environmental Assessment Report, the potential environmental assessment conditions, or for more information, visit the Agency's website

 http://www.ceaa-acee.gc.ca/050/document-eng.cfm?document=99993

To view the Ontario environmental assessment report and for more information on the project visit:

https://www.ontario.ca/environment-and-energy/rainy-river-gold-mine