New Gold Reports Fourth Quarter and Annual Operational Results; Achieves Annual Production Guidance
- Total production for the fourth quarter was 120,567 gold equivalent1 (gold eq.) ounces (83,096 ounces of gold, 199,428 ounces of silver and 18.5 million pounds of copper). For the year, production was 437,617 gold eq. ounces (293,139 ounces of gold, 636,952 ounces of silver and 72.1 million pounds of copper), achieving mid-range of the revised annual production guidance.
- The Rainy River Mine produced 68,241 gold eq. ounces (66,734 ounces of gold and 127,390 ounces of silver) for the quarter. For the year, production was 233,201 gold eq. ounces (228,919 ounces of gold and 361,862 ounces of silver), achieving the higher end of the revised annual production guidance.
- The New Afton Mine produced 52,326 gold eq. ounces (16,362 ounces of gold and 18.5 million pounds of copper) for the quarter. For the year, production was 204,416 gold eq. ounces (64,220 ounces of gold and 72.1 million pounds of copper), achieving the mid-range of revised annual production guidance.
- On December 23, 2020, the Company completed the partial redemption of $200 million of the principal amount of the outstanding 6.25% senior notes due in 2025 that was funded with cash on hand. (refer to the Company's November 23, 2020 and December 23, 2020 news releases for further information)
- The Company recently purchased copper put options with a floor of $3.10 per pound, covering 1,700 tonnes per month (approximately 65% of anticipated production), over the period from April 2021 to September 2021. At the end of 2020, all gold option contracts have expired and the Company is now fully exposed to current gold prices.
- Exploration drilling programs at both assets were launched late in the fourth quarter and an update is expected to be released in the latter part of the first quarter.
- At the end of the quarter, the Company had a cash position of $185 million and a strong liquidity position of approximately $490 million.
- Our COVID-19 response continued to be effective with the implementation of rapid testing at Rainy River. Our site remained COVID free for majority of 2020 with two isolated contract employee cases in Q4. The cases were identified early with our rapid testing process and confirmed with Public Health and posed minimal risk to the operation. Both cases have now recovered. For further information on the Company’s response to COVID-19 is available via the following link: https://newgold.com/covid-19/.
- For the fourth quarter, gold eq. production was 68,241 ounces (66,734 ounces of gold and 127,390 ounces of silver), at a grade of 0.93 grams per tonne, an increase over the prior two quarters. For the year, gold eq. production was 233,201 ounces (228,919 ounces of gold and 361,862 ounces of silver), achieving the higher end of revised annual production guidance.
- During the fourth quarter, the open pit mine achieved approximately 159,000 tonnes per day, an 9% increase over the prior quarter and exceeding the 2021 target capacity of 150,000 tonnes per day. During the quarter, approximately 3.9 million ore tonnes and 10.6 million waste tonnes (including 3.8 million capitalized waste tonnes) were mined from the open pit at an average strip ratio of 2.70:1. Capitalized waste remained elevated in the quarter as Phase 3 waste stripping continued to advance.
- For the second consecutive quarter, the mill processed approximately 27,000 tonnes per day for the quarter, the maximum average allowable under the existing mill permit. The mill continued to process ore directly supplied by the open pit combined with ore from the medium grade stockpile and processed an average grade of 0.93 grams per tonne at a gold recovery of 90%. Low grade ore continues to be stockpiled for future processing as part of the underground mine plan. With the mill operating consistently at its maximum capacity, efforts will continue to focus on additional optimization opportunities to increase recovery and unit cost performance. Mill availability for the quarter averaged 94%, exceeding plan.
- All key capital projects were completed during the quarter, including the Stage 2 tailings dam raise and wick drain installation for stabilization of the east waste dump. As previously disclosed, a small portion of the Tailings Management Area (TMA) construction as well as other smaller projects that were originally scheduled for completion in 2021 were completed in the quarter, thereby reducing planned capital requirements for 2021.
- At the end of the quarter, development of the decline towards the Intrepid underground ore zone had advanced 590 metres, exceeding the planned 550 metres for the year. The operation is expected to access the first ore level by the middle of the first quarter. The focus in 2021 will be on the refinement of the long-hole mining methodology and block model. Production from the Intrepid Zone is expected to begin in late 2022.
- Late in the quarter, a drilling program was launched on the North East Trend, located approximately 18 kilometers northeast of the Rainy River Mine. A total of 1,298 meters of the 8,000 metre were completed by the end of the year. The drilling program continues to test the previously identified high priority targets.
- During the quarter, New Afton reported six isolated COVID-19 cases, five cases being among our contractor teams. All six cases have recovered. New Afton is expecting to introduce contact tracing technology and begin implementing rapid testing as an additional screening precaution. For further information on the Company’s response to COVID-19 is available via the following link: https://newgold.com/covid-19/.
- For the fourth quarter, New Afton produced 52,236 gold eq. ounces (16,362 ounces of gold, and 18.5 million pounds of copper). For the year, the mine produced 204,416 gold eq. ounces (64,220 ounces of gold, and 72.1 million pounds of copper), achieving the mid-range of revised annual production guidance.
- During the quarter, total development towards the B3 and C-Zone advanced by approximately 1,705 metres, with B3 development achieving 91% and the C-Zone achieving 110% of the planned levels for the year. B3 development efforts were accelerated during the quarter following a short-term reallocation of the workforce to the east cave recovery areas during the third quarter. Execution of the overall B3/C-Zone development project remains on schedule.
- The underground mine averaged 17,259 tonnes per day for the quarter, above original planned levels.
- During the quarter, the mill averaged 15,358 tonnes per day, in-line with plan. The mill processed average gold and copper grades of 0.46 grams per tonne gold and 0.73% copper, respectively, with gold and copper recoveries of 79% and 81%, respectively. Mill availability for the quarter averaged 99%, above plan.
- Both the 2020 and 2021 mine plans incorporate multiple sources of mined ore, including extraction from the east and west caves and rehabilitation and pillar recoveries of medium-high grade. During the quarter, a new access level into the east cave recovery zone completed in the third quarter was utilized with an average extraction rate of 1,339 tonnes per day, including several days over 3,000 tonnes per day in December. The ultimate target extraction rate is 4,000 tonnes per day.
- Capital projects were advanced during the quarter, including B3/C-Zone development and construction of the Thickened and Amended Tailings ("TAT") facility. The thickener is expected to be on site in Q1 2021 and the overall TAT project remains on schedule.
- B3 permitting remains on schedule and submission of the C-zone permit was completed during the quarter.
- Late in the quarter, a 10,000 metre exploration drilling program was launched on the Cherry Creek trend with the initial focus on testing the potential near surface epithermal and porphyry style mineralization. Four drill rigs were mobilized and a total of 6,516 meters were completed by the end of the year.
- On February 19, 2021, the Company will release fourth quarter and year-end financial results.
- Participants may listen to the webcast by registering on our website at www.newgold.com or via the following link https://onlinexperiences.com/Launch/QReg/ShowUUID=EC31CA20-994F-44B2-B28E-DEFD260D3B52.
- Participants may also listen to the conference call by calling toll free 1-833-350-1329, or 1-236-389-2426 outside of the U.S. and Canada.
- A recorded playback of the conference call will be available until by calling toll free 1-800-585-8367, or 1-416-621-4642 outside of the U.S. and Canada, passcode 5989090. An archived webcast will also be available until March 19, 2021 at www.newgold.com.
Source: https://www.newgold.com/2021/Corporate-Presentation-January-2021/default.aspx
As an integral part of New Gold’s Project Procurement team, the Project Buyer will provide support to the Capital Projects group.
The role of the Major Material Warehouse Technician is responsible for the managing of all the major materials (fuel, oils, mill reagents, tires, drilling materials etc.) to support the mine operations.
The Senior Inventory Management Analyst leads the management of Rainy River Mine Inventory to sustain site operations.
The role of Warehouse Technician is to ensure the efficient operation of all warehouse activities.
As a member of the New Gold Rainy River team, the Lead Environmental Technician demonstrates commitment and compliance with company Health & Safety, Environment and Social Responsibility policies and procedures.
The role of Mine operations Superintendent is to oversee the safe and efficient extraction of ore through the supervision and control of mining department activities such as budgeting, planning staffing and cost control.
The Senior Mine Engineer will provide clarity and focus for the engineering group to achieve and surpass the mine’s safety and production targets and to add value to the operation.
The Engineering & Construction Superintendent is expected to be a safety leader on site and thus will be required to demonstrate experience in executing work with a safety focus and an emphasis on human performance.
Groundwater monitoring, management and modeling is a critical component in Environmental management at New Afton.
Red Seal Industrial Mechanic (Millwright) provides skilled expertise, executing world class maintenance practices and lubrication techniques.