New Gold Inc. (“New Gold” or the “Company”) (TSX and NYSE
American: NGD) reports that its Rainy River Mine, which is
close to the United States border, has temporarily suspended
operations for a period of two weeks so that its local workforce
can follow the fourteen day period of self-isolation as recommended
by federal and provincial authorities relating to travel outside
Canada as frequent border crossing is a common practice in the
region. The requirement to self-isolate is consistent with our
company-wide policy currently in place for all New Gold operations
and projects.
Approximately 70% of the workforce of the Rainy River Mine is
made up of local residents and making frequent short trips across
the border to the local Minnesota communities is a common practice
in the region. A significant number of employees have voluntarily
indicated that they have recently made such trips and are now in
self-isolation, following the guidance of the Canadian and Ontario
governments with respect to COVID-19. Accordingly, the Company has
made the decision to temporarily suspend operations at the Rainy
River Mine, for precautionary reasons for a period of fourteen
days, consistent with this recommended period of self-isolation.
The closure of Canada - United States border to all non-essential
travel is imminent, so no additional members of the workforce are
expected to be required to self-isolate. The suspension will
continue to be assessed over the fourteen day period to determine
when full or partial operations can be resumed in the safest
possible environment for our employees. The Company does not
anticipate making any adjustments to annual guidance for Rainy
River.
During the next two weeks, the Rainy River Mine will maintain a
minimum crew to monitor and maintain essential activities, ensure
there is no impact to the environment and fully sanitize the mine
site, camp, and mobile and fixed equipment to ensure the safest
possible environment for our employees when operations resume. We
will also continue to work on optimizing our plans for transport
and employee accommodation to reflect the principals of social
distancing and other guidance to prevent COVID-19.
The New Afton Mine continues to operate at normal levels with a
minimal proportion of their workforce currently in self-isolation.
The Company will continue to monitor this situation to ensure the
ongoing safety of our New Afton team.
The Company has a comprehensive COVID-19 response plan in place
and is monitoring the situation closely. Currently there are no
suspected or confirmed cases of COVID-19 at any of our sites. The
health and safety of our workforce and our communities remains our
number one concern and we will support all initiatives that align
with that objective.
About New Gold Inc.
New Gold is a Canadian-focused intermediate gold mining company
with a portfolio of two core producing assets in Canada, the Rainy
River and New Afton Mines as well as the 100% owned Blackwater
development project. The Company also operates the Cerro San Pedro
Mine in Mexico (in reclamation). New Gold’s vision is to build a
leading diversified intermediate gold company based in Canada that
is committed to environment and social responsibility. For further
information on the Company, 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 length of
the suspension of operations at the Rainy River Mine and the
anticipated timing for the resumption of full or partial
operations; the Company completing full sanitation of the mine
site, building, camps, mobile and fixed equipment prior to
operations being restarted; statements with respect to the
Company’s annual guidance for Rainy River; the continued operations
at the New Afton Mine; the Company’s anticipated course of action
at the Rainy River Mine during the suspension of operations; and
the Company’s expectation that no additional members of the
workforce are expected to be required to self-isolate due to
cross-border travel to the United States.
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”), its most recent annual information form and technical
reports on the Rainy River Mine and New Afton Mine 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 other than
as set out herein; (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 New Afton
Mine, Rainy River Mine and Blackwater project being consistent with
New Gold’s current expectations, particularly in the context of the
outbreak of COVID-19; (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; (9) there being no new cases of COVID-19 in
the Company’s workforce at either the Rainy River or New Afton Mine
and the assumption that no additional members of the workforce are
expected to be required to self-isolate due to cross-border travel
to the United States or any other country; (10) the responses of
the relevant governments to the COVID-19 outbreak being sufficient
to contain the impact of the COVID-19 outbreak; and (11) with
respect to the Company’s annual guidance for Rainy River, the
temporary suspension of operations at the Rainy River Mine ending
within several weeks.
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; there being cases of COVID-19 in the
Company’s workforce at either the Rainy River or New Afton Mine, or
both; the Company’s workforce at either the Rainy River Mine or the
New Afton Mine, or both, being required to self-isolate due to
cross-border travel to the United States or any other country; the
responses of the relevant governments to the COVID-19 outbreak not
being sufficient to contain the impact of the COVID-19 outbreak;
with respect to the Company’s annual guidance for Rainy River, the
temporary suspension of operations at the Rainy River Mine lasting
longer than several weeks; and risks inherent to a mine facility
during shut down; and difficulties in demobilization or restart of
operations due to various factors, including lack of availability
of manpower or equipment. 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,
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/20200320005089/en/
Anne Day Vice President, Investor Relations Direct: +1
(416) 324-6003 Email: anne.day@newgold.com
New Gold (AMEX:NGD)
Historical Stock Chart
From Mar 2024 to Apr 2024
New Gold (AMEX:NGD)
Historical Stock Chart
From Apr 2023 to Apr 2024