New Gold (TSX: NGD | NYSE American: NGD) hit some golden production milestones at its wholly owned New Afton copper-gold mine in British Columbia, and its Rainy River gold mine in Ontario.
At New Afton, the C-Zone, the mine’s fourth block cave, began commercial production earlier than planned. The materials handling system was activated in October, and the cave footprint achieved the necessary hydraulic radius for self-caving. The gyratory crusher and conveyor system were also installed ahead of schedule, ensuring efficient, low-cost, and low-emission ore transport throughout the mine’s lifespan. Furthermore, the construction of the C-Zone cave footprint has successfully reached the goal of 18 draw bells for hydraulic radius.
“New Afton delivered a strong operating quarter and completed critical C-Zone milestones ahead of schedule, while Rainy River delivered costs as planned, with all-in sustaining costs 29% lower quarter-over-quarter,” stated Patrick Godin, President and CEO. “The company continues to expect the fourth quarter of 2024 to be its strongest quarter of the year, concluding a successful year that has seen New Gold reach its free cash flow inflection point and deliver on key project milestones in pursuit of our objective to target a sustainable production platform of approximately 600,000oz Au per year until at least 2030.”
These achievements are anticipated to immediately reduce unit operating costs and enable the C-Zone to ramp up to over 14,500tpd by 2026.
In late September, New Afton extracted its first underground ore from the Rainy River gold mine. Production is projected to increase to 5,500tof underground ore daily by 2027. A second access portal was created on the east side of the open pit, and the ramp connecting the underground workings to the pit is expected to be completed by early 2025. This will provide an additional exit and significantly shorten the haulage distance.
The main ventilation raise was finished in the third quarter. The installation of the main fans and heaters is scheduled for next summer, completing the primary fresh air system for the mine’s lifespan.
In September, underground mining at the Intrepid zone averaged over 1,000tpd with grades aligning positively with the block model.
With these key milestones achieved, New Gold’s president and CEO, Patrick Godin, announced that technical studies are in progress at both mines to replace depleted reserves.
“Financially, the third quarter was excellent for New Gold, highlighted by record quarterly free cash flow generation of C$57M,” added Mr. Godin. “Similarly, financial discipline allowed the company to maintain an excellent liquidity position and strong balance sheet while making the C$43M payment to Ontario Teachers and repaying $50 million on the credit facility.”
