New Gold Reports Third Quarter Operational Results
- Total production for the third quarter was 115,536 gold equivalent (gold eq.) ounces (78,959 ounces of gold, 171,825 ounces of silver and 18.2 million pounds of copper), on track to achieve revised annual production guidance.
- The Rainy River Mine produced 64,221 gold eq. ounces (63,004 ounces of gold and 102,814 ounces of silver) for the quarter, on track to achieve the mid-range of revised annual production guidance.
- The New Afton Mine produced 51,315 gold eq. ounces (15,955 ounces of gold and 18.2 million pounds of copper) for the quarter, on track to achieve the mid-range of revised annual production guidance.
- During the quarter, the Company completed the divestment of the Blackwater Project to Artemis Gold (“Artemis”) for total cash consideration of C$190 million.The initial cash payment of C$140 million was received during the quarter with the remaining C$50 million cash payment due on August 24, 2021. Under the terms of the agreement, the Company has retained an 8% gold stream and a 6% equity stake in Artemis. (Refer to the Company's June 24, 2020 and August 24, 2020 news releases for further information)
- During the quarter, the Company completed the full redemption of its outstanding 6.25% senior notes due in 2022 that was funded from the proceeds of the $400 million senior notes offering that was completed on June 24, 2020. (Refer to the Company's June 24, 2020 and July 10, 2020 news releases for further information)
- During the quarter, the Company transferred approximately $90 million in letters of credit related to mine closure costs to surety bonds, increasing the funds available under the credit facility.
- On October 9, 2020, the Company extended its secured credit facility with a syndicate of 8 top-tier financial institutions. The facility will now mature on October 9, 2023 and has a new maximum borrowing limit of $350 million. (Additional details provided below)
- At the end of the quarter, the Company had a cash position of $415 million and a strong liquidity position of approximately $720 million, based on the amended credit facility.
- Mr. Eric Vinet has been promoted to Senior Vice President, Operations to be effective October 19, 2020. Eric joined New Gold in January 2019 as Vice President, Technical Services and most recently was the Interim General Manager at the Rainy River Mine where he led the successful repositioning of the operation for profitability and free cash flow generation.
- Following the approval by Health Canada, three rapid testing devices were procured to test for the COVID-19 virus as we continue to prioritize the safety and well-being of our employees and our local and Indigenous communities. Daily testing increased during the quarter to further enhance screening protocols, which have been instrumental in keeping the operation COVID-19 free.
- For the third quarter, gold eq. production was 64,221 ounces (63,004 ounces of gold and 102,814 ounces of silver), well positioned to achieve the mid-range of revised annual production guidance as the overall grade is expected to continue to improve in the fourth quarter.
- During the third quarter, the open pit mine continued to ramp-up towards our 2021 target capacity of 150,000 tonnes per day. Mine productivity increased by 15% over the prior quarter, averaging 145,701 tonnes per day, achieving 97% of the 2021 productivity target.
- During the quarter, approximately 3.4 million ore tonnes and 10.0 million waste tonnes (including 4.3 million capitalized waste tonnes) were mined from the open pit at an average strip ratio of 2.99:1.
- During the quarter, the mill achieved a record of 26,998 tonnes per day, reaching 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 0.88 grams per tonne at a gold recovery of 89%. Low grade ore continues to be stockpiled for future processing as part of the underground mine plan. Now that the mill has reached its maximum capacity, efforts will focus on additional optimization opportunities to increase recovery and unit cost performance. Mill availability for the quarter averaged 90%, in-line with plan.
- All key capital projects were substantially completed during the quarter, including the Stage 2 tailings dam raise, wick drain installation for stabilization of the east waste dump, commissioning of the maintenance and warehouse facilities as well as the water treatment train following the commissioning of the Biochemical Reactor (BCR2) that allows clean water effluent discharge. As previously disclosed, a small portion of the Tailings Management Area (TMA) construction as well as potentially other smaller projects that were originally scheduled for completion in 2021 are now planned for completion in 2020, thereby reducing planned capital requirements for 2021.
- In the latter part of the quarter, drilling permits were received and an exploration drilling program will be launched during the fourth quarter that will initially focus on the northeast trend area, located approximately 18 kilometers northeast of the Rainy River Mine. The 8,000 metre drilling campaign has been designed in two phases and will test previously identified high priority targets.
- The mine produced 51,315 gold eq. ounces for the quarter (15,955 ounces of gold, and 18.2 million pounds of copper) and the operation remains well positioned to achieve the mid-range of revised annual production guidance.
- During the quarter, total development towards the B3 and C-zone advanced by approximately 1,150 metres, achieving 92% of planned levels year to date.
- The underground mine averaged 17,249 tonnes per day for the quarter, above original planned levels.
- The mill averaged 15,483 tonnes per day for the quarter, in-line with plan, at an average gold and copper grade of 0.44 grams per tonne gold and 0.71% copper, respectively, with gold and copper recoveries of 80% and 82%, respectively.
- As previously disclosed, the mill continues to process lower copper and gold grades than originally planned. 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 point into the east cave recovery zone was completed supporting an initial average extraction rate of 1,400 tonnes per day, including a peak of 2,000 tonnes per day, with an ultimate target extraction rate of 4,000 tonnes per day.
- Capital projects continued to be advanced during the quarter, including the construction of the Thickened and Amended Tailings ("TAT") facility. Installation of the lime system was completed, and foundation piling work is in progress. Manufacturing of the thickener is currently underway and is expected to be delivered in Q1 2021.
- During the quarter, a key portion of the water permit was received, and the Phase 1 permit for the Thickened and Amended Tailings is expected to be received in the fourth quarter. B3 permitting remains on schedule and submission of the C-zone permit is expected during the fourth quarter.
- Approval for Phase 1 of the Cherry Creek Trend drilling program was recently received with drilling expected to be launched in the fourth quarter. The program will focus on drilling high priority targets defined by coincidental geochemical and geophysical anomalies. The objective of the 10,000 metre Phase 1 drilling campaign is to evaluate both near surface epithermal gold and underlying copper-gold system potential within the approximately 12 kilometre trend of the prospective structural corridor located approximately 3 kilometres west of the New Afton mill.
- 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 7759268. An archived webcast will also be available until December 5, 2020 at www.newgold.com.
Source: https://www.newgold.com/2020/Corporate-Presentation-November-2020/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.