New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE
American: NGD) today provides an update on the operation of the
mill at the Rainy River Mine, located in northern Ontario.
In the late afternoon on April 24, management at the Rainy River
mine temporarily shut down the mill to assess a buildup of water in
the Tailings Management Area (TMA). Upon further examination over
the ensuing days, it was determined that approximately 700,000 m3
of excess water was stored in the TMA, driven by the rapid spring
melt and large snow pack this year in northern Ontario. To manage
the excess water, the Company is transferring water from the TMA to
the Water Management Pond (WMP). Extra pumping capacity has been
installed and more pumping capacity is being added to expedite the
water transfer. It is expected that the mill will be fully
operational within 5 days, depending on precipitation levels during
this period. The Company is working with the relevant regulators to
expedite the deposition of tailings into Cell 3, which would
significantly improve overall TMA water management. The Company has
taken advantage of the mill shutdown to accelerate maintenance
activities that had been planned for later in May.
Mining and crushing operations have not been impacted and
continue at planned levels, with ore being stockpiled and
segregated for processing when the mill restarts. Management
anticipates that any production delays will be offset so that the
Company will still be in a position to achieve its annual
production guidance.
“Management is addressing the issue of excess water
appropriately and in a manner that is consistent with our
commitment to protecting our environment. We remain focused on
executing our current mine plan and are confident that the mill
will resume normal operations soon,” stated Renaud Adams, CEO.
About New Gold Inc.
New Gold is a Canadian-focused intermediate gold mining company.
The Company has a portfolio of two core producing assets in
top-rated jurisdictions, the Rainy River and New Afton Mines in
Canada. The Company also operates the Cerro San Pedro Mine in
Mexico (which transitioned to residual leaching in 2016). In
addition, New Gold owns 100% of the Blackwater project located in
Canada. New Gold’s objective is to be a 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 timing of
resumption of mill operations and deposition of tailings into TMA
Cell 3, and the impact of the shutdown on production and annual
guidance.
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
Gold’s latest annual management’s discussion and analysis
(“MD&A”), Annual Information Form and Technical Reports filed
at www.sedar.com 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; (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; (4) the exchange
rate between the Canadian dollar and U.S. dollar, and to a lesser
extent, the Mexican Peso, being approximately consistent with
current levels; (5) prices for diesel, natural gas, fuel oil,
electricity and other key supplies being approximately consistent
with current levels; (6) equipment, labour and materials costs
increasing on a basis consistent with New Gold’s current
expectations; (7) arrangements with First Nations and other
Aboriginal groups in respect of the Rainy River mine and Blackwater
project being consistent with New Gold’s current expectations; (8)
all required permits, licenses and authorizations being obtained
from the relevant governments and other relevant stakeholders
within the expected timelines and the absence of material negative
comments during the applicable regulatory processes; and (9) water
pumps at Rainy River performing in line with expectations..
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: significant capital requirements and the availability
and management of capital resources; additional funding
requirements; price volatility in the spot and forward markets for
metals and other commodities; fluctuations in the international
currency markets and in the rates of exchange of the currencies of
Canada, the United States and, to a lesser extent, Mexico;
discrepancies between actual and estimated production, between
actual and estimated mineral reserves and mineral resources and
between actual and estimated metallurgical recoveries; 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; fluctuation in
treatment and refining charges; changes in national and local
government legislation in Canada, the United States and, to a
lesser extent, Mexico or any other country in which New Gold
currently or may in the future carry on business; taxation;
controls, regulations and political or economic developments in the
countries in which New Gold does or may carry on business; 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, the lack of certainty with respect to foreign legal
systems, which may not be immune from the influence of political
pressure, corruption or other factors that are inconsistent with
the rule of law; the uncertainties inherent to current and future
legal challenges New Gold is or may become a party to; diminishing
quantities or grades of mineral reserves and mineral resources;
competition; loss of key employees; rising costs of labour,
supplies, fuel and equipment; actual results of current exploration
or reclamation activities; uncertainties inherent to mining
economic studies; changes in project parameters as plans continue
to be refined; accidents; labour disputes; defective title to
mineral claims or property or contests over claims to mineral
properties; unexpected delays and costs inherent to consulting and
accommodating rights of Indigenous groups; risks, uncertainties and
unanticipated delays associated with obtaining and maintaining
necessary licenses, permits and authorizations and complying with
permitting requirements. In addition, there are risks and hazards
associated with the business of mineral exploration, development
and mining, including environmental events and hazards, industrial
accidents, unusual or unexpected formations, pressures, cave-ins,
excess water, flooding and gold bullion losses and risks associated
with the start of production of a mine, such as Rainy River, (and
the risk of inadequate insurance or inability to obtain insurance
to cover these risks) as well as “Risk Factors” included in New
Gold’s Annual Information Form, MD&A and other disclosure
documents filed on and available at www.sedar.com and on EDGAR at
www.sec.gov. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190501005547/en/
Anne DayVice President, Investor RelationsDirect: +1
(416) 324-6003Email: anne.day@newgold.com
Julie TaylorDirector, Corporate Communications and
Investor RelationsDirect: +1 (416) 324-6015Toll free: +1 (888)
315-9715Email: info@newgold.com
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