TORONTO, June 27, 2016 /PRNewswire/ - New Gold Inc.
("New Gold") (TSX:NGD) (NYSE MKT:NGD) today provides an update on
results of the company's exploration programs at the New Afton
C-zone and Peak Mines ("Peak") for the first half of 2016.
NEW AFTON C-ZONE
In February 2016, the company
announced the results of its New Afton C-zone feasibility study,
which added 25 million tonnes of gold and copper ore to New Afton's
mineral reserves and outlined the potential to add five years of
mine life at current throughput rates. The C-zone is the
down-plunge extension of the B-zone block cave which New Gold is
currently mining at New Afton. As the C-zone mineralization remains
open along strike and down plunge, the company's primary focus for
2016 has been to test the potential to increase the C-zone mineral
resource immediately around the currently contemplated block cave
volume for incorporation into the C-zone block cave reserve mine
plan. Additionally, New Gold has been exploring for potential
extensions of the resource as it continues laterally and down
plunge farther to the west.
Drilling along strike from the upper portions of the current
C-zone block cave volume has intercepted copper-gold mineralization
extending up to 75 metres to the west, as highlighted by hole 156.
At the same time, drill intercepts along strike between the top of
the currently estimated cave volume and the proposed extraction
level indicate that the zone of mineralization may narrow between
50 and 75 metres to the west before widening again between 75 and
100 metres to the west. As part of the company's first half 2016
program, New Gold has also drilled up to 100 to 150 metres west of
the current block cave volume, with three holes (161, 164 and 165)
intercepting significant copper-gold mineralization over true
widths ranging from 30 to 55 metres, further supporting the
potential for the C-zone to remain open even farther along strike
and down plunge to the west.
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Drill Hold
ID No.
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From
(m)
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To
(m)
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Interval
(m)
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Estimated
True Width
(m)
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Gold
(g/t)
|
Copper
(%)
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EA-156
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348
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434
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86
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50.0
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0.90
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1.31
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EA-161
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522
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620
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98
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36.0
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0.89
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0.31
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EA-164
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562
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638
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76
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55.0
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0.23
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0.52
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EA-165
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694
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746
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52
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32.0
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0.60
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1.14
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For a full summary of the company's first half 2016 exploration
drilling results and related information, refer to the news release
filed on SEDAR at www.sedar.com or on the company's website at
www.newgold.com.
"The results of the 2016 C-zone drilling confirm the continuity
of mineralization immediately to the west of the block cave volume
included in our C-zone feasibility study reserve, indicating good
potential to further increase New Afton's overall mine life,"
stated Mark Petersen, Vice
President, Exploration. "Looking forward, it is particularly
encouraging to see step out holes as far as 150 metres west of the
planned block cave continue to intersect copper and gold
mineralization at grades similar to those currently being
mined."
Year to date, New Gold has completed approximately 60% of the
company's planned 10,000-metre 2016 exploration program at New
Afton. Based on the encouraging results received to date, the
company plans to complete the remainder of its $6 million budgeted program during the second
half of the year. Results of the 2016 exploration program will be
incorporated into New Gold's 2016 year-end mineral reserve and
resource estimates.
PEAK
In November 2015, New Gold
announced the discovery of two new zones of polymetallic
mineralization, Chronos and Anjea, both located adjacent to current
and past-producing mines distributed along the nine-kilometre Peak
mine corridor. Chronos is a zone of gold-silver-lead-zinc
mineralization located adjacent to the Peak mill and directly above
the Perseverance ore body which is currently being mined. Anjea is
a zone of copper-gold and silver-lead-zinc mineralization located
adjacent to the historic Great Cobar mine and approximately nine
kilometres north of the Peak mill. After discovering these two new
zones in 2015, New Gold's objective in 2016 has been to further
delineate the Chronos and Anjea mineral resources for incorporation
into the company's 2016 year-end mineral reserve and resource
estimates.
The company's 2016 exploration budgeted program at Peak
totals $8 million, which is expected
to include approximately 10,000 metres of drilling at each of
Chronos and Anjea, as well as continued drill testing of other
prospective targets along the Peak mine corridor.
"Following the successful discoveries of Chronos and Anjea in
2015, we continue to be encouraged by the positive drilling results
we are receiving, as they provide further evidence of Peak's robust
potential to replace and grow its mineral resources well into the
future," added Mr. Petersen.
CHRONOS
The Chronos zone is comprised of three sub-parallel vertically
oriented mineralized lenses – Main, East and West. The Main lens
includes high-grade gold along with associated silver,
copper, lead and zinc while the East and West lenses contain
primarily silver, lead and zinc with some localized gold. Since the
November 2015 announcement of the
Chronos discovery, over 100 additional holes have been drilled
which have successfully expanded the dimensions of the mineralized
zone. When compared to November 2015,
the 2016 delineation drilling program has grown the Chronos zone
from 280 to 350 metres in vertical height, extended it from 45
metres to 120 metres along strike, and increased the average
thickness from a range of 10 to 25 metres to approximately 40
metres.
At the end of 2015, the company's Inferred mineral resources
included 190,000 tonnes grading 13.4 grams per tonne of gold from
the Chronos Main lens. The focus of the company's 2016 drilling at
Chronos has been on delineating the overall limits of the zone,
including the East and West lenses, to support an Inferred mineral
resource estimate and delineating the Main lens to the Measured and
Indicated classification level for incorporation into New Gold's
2016 year-end mineral reserve estimates and Peak's longer-term mine
plan.
ANJEA
The Anjea zone is located approximately 200 metres to the south
of the historic Great Cobar mine and begins at a relatively shallow
depth of less than 100 metres from surface. Similar to Chronos, the
Anjea zone is made up of sub-parallel vertically oriented lenses,
Anjea East and Anjea West. While both lenses consist
predominantly of copper mineralization with subordinate amounts of
gold, a localized zone of higher gold grades has also been
intercepted during the recent drilling of Anjea East. Additionally, the 2016 drilling
program continues to return positive results from a separate lens
of silver-lead-zinc mineralization situated approximately 40 metres
west of the Anjea zone, providing further upside potential for
future development at Great Cobar.
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Drill Hold
ID No.
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Mineralized
Zone
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From
(m)
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To
(m)
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Interval
(m)
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Estimated
True Width
(m)
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Gold
(g/t)
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Silver
(g/t)
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Copper
(%)
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Lead
(%)
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Zinc
(%)
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GC-9C
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Anjea East
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769
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825
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56
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32.1
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1.39
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4.19
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2.51
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0.00
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0.03
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GC-9D
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Anjea East
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738
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775
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37
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24.9
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0.09
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3.09
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1.89
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0.00
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0.03
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GC-9D
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Anjea East
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787
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811
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24
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16.5
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0.05
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3.22
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1.78
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0.00
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0.01
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GC-23A
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Anjea East
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772
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813
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41
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26.3
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0.74
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4.00
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2.42
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0.00
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0.03
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GC-23A
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Anjea East
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813
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834
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21
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17.4
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6.11
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3.67
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2.20
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0.01
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0.03
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GC-9C
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Anjea West
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834
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854
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20
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12.4
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0.06
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2.48
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1.85
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0.00
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0.03
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GC-17A
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Anjea West
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692
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698
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6
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4.0
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0.25
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12.90
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2.39
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0.03
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0.16
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GC-23A
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Anjea West
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853
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875
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22
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14.6
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0.60
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7.66
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1.88
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0.01
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0.06
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For a full summary of the company's first half 2016 exploration
drilling results and related information, refer to the news release
filed on SEDAR at www.sedar.com or on the company's website at
www.newgold.com.
The drilling completed to date at Anjea is expected to be
sufficient for inclusion in the company's Inferred mineral resource
estimate at the end of 2016. However, as both the Anjea zones
remain open at depth, New Gold plans to follow up with additional
drilling during the second half of the year.
EMERGING PEAK MINE CORRIDOR TARGETS
Exploration of three earlier stage targets along the Peak mine
corridor has also returned positive results to date. The three
targets, Dapville, Gladstone and
Proteus, are all located within one kilometre of the New Cobar and
Chesney mines.
Dapville is located along the trend that extends to the south
between the Anjea zone and the New Cobar mine. Following up on
historic drill results in the area, drilling at Dapville has
intercepted significant copper mineralization along with associated
silver, lead and zinc. Copper grades intercepted to date range from
1% to 5% over one to five-metre true widths at depths from surface
ranging from 250 to 500 metres. Dapville remains open at depth and
along strike.
Gladstone is located one
kilometre south of the Dapville target and approximately 400 metres
west and midway between the New Cobar and Chesney mines.
Preliminary drilling has intercepted copper mineralization with
grades ranging from 1% to 7% copper over true widths of two to 10
metres. Drilling to date has focused on the northern portion of the
Gladstone target and is considered
sufficient to support inclusion in the company's year-end 2016
Inferred resource estimate.
Reconnaissance drilling in the Proteus area has intercepted
significant copper mineralization over a vertical depth that ranges
from 100 to 500 metres from surface with grades ranging from 1% to
3% copper and true widths ranging from approximately three to 11
metres. Proteus represents a 500 metre long trend of mineralized
structures located approximately 500 metres south of the Chesney
mine. The Proteus zone remains open at depth and along strike.
For a full summary of the company's first half 2016 exploration
drilling results and related information, refer to the news release
filed on SEDAR at www.sedar.com or on the company's website at
www.newgold.com.
New Gold looks forward to providing future updates on the
company's exploration initiatives.
ABOUT NEW GOLD INC.
New Gold is an intermediate gold mining company. The company has
a portfolio of four producing assets and two 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. In addition, New Gold
owns 100% of the Rainy River and Blackwater projects, both in
Canada, as well as a 4% gold
stream on 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. For further information on the company,
please visit www.newgold.com.
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 the exploration
and mineralization potential of the Chronos and Anjea zones, the
potential and timing with respect to defining mineral resources
thereon, the timing of future exploration activities and the
disclosure of updates thereon.
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, New
Annual Information Form and its Technical Reports filed at
www.sedar.com.
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: changes in national and local government legislation in
Australia; the speculative nature
of mineral exploration and development, including the risks of
obtaining and maintaining the validity and enforceability of the
necessary regulatory approvals, licenses and permits and complying
with the permitting requirements in Australia; loss of key employees; rising costs
of labour, supplies, fuel and equipment; actual results of current
exploration; risks, uncertainties and unanticipated delays
associated with obtaining and maintaining necessary regulatory
approvals, licenses, permits and authorizations and complying with
permitting requirements; and the factors discussed under "Risk
Factors" included in New Gold's disclosure documents filed on and
available at www.sedar.com.
Forward-looking statements are not guarantees of future
performance, and actual results and future events could materially
differ from those anticipated in such statements. All of the
forward-looking statements contained in this news release are
qualified by these cautionary statements. New Gold expressly
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
events or otherwise, except in accordance with applicable
securities laws.
TECHNICAL INFORMATION
The scientific and technical information in this news release
has been reviewed and approved by Mark A.
Petersen, Vice President, Exploration of New Gold. Mr.
Petersen is an SME Registered Member, an AIPG Certified
Professional Geologist and a "Qualified Person" as defined under
National Instrument 43-101. Mr. Petersen has verified the data
disclosed in this news release, including the exploration,
analytical and testing data underlying the information. His
verification included a detailed review of the applicable assays
for individual samples represented in summary form herein as well
as oversight of the management of applicable drill hole databases
and original source data including assay certificates. No
limitations were imposed on Mr. Petersen's verification
process.
New Gold maintains comprehensive Quality Assurance / Quality
Control ("QA/QC") programs for all of its exploration and
development projects. Key elements of New Gold's QA/QC program
include chain of custody of samples, regular insertion of certified
reference standards and blanks, and duplicate check assays. At New
Afton drill core is sampled at regular 2 metre intervals, halved
and shipped in sealed bags to Actlabs in Kamloops, British Columbia, Canada where it is
analyzed for gold, silver, copper as well as other elements of
interest. Check analyses are completed by ALS Laboratories in
North Vancouver, British Columbia,
Canada. Additional information regarding the company's quality
assurance processes is set out in the March
24, 2015 New Afton mine NI 43-101 Technical Report available
at www.sedar.com. At Peak drill core is sampled at regular 1 or 2
metre intervals, halved or whole core assayed and shipped in sealed
bags to ALS Laboratories in Orange, New
South Wales, Australia where it is analyzed for gold,
silver, copper, lead and zinc as well as other elements of
interest. Check analyses are completed by SGS Laboratory in West
Wyalong, New South Wales,
Australia. Additional information regarding the company's
quality assurance processes at the New Afton and Peak mines is set
out in New Gold's most recent Annual Information Form and Technical
Reports for the New Afton and Peak mines available at
www.sedar.com.
For additional technical information on New Gold's material
properties, including a detailed breakdown of Mineral Reserves and
Mineral Resources by category, as well as key assumptions,
parameters and risks, refer to New Gold's Annual Information Form
for the year ended December 31,
2015.
SOURCE New Gold Inc.