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New Gold Provides Rainy River Project Update; Schedule and Capital Cost Remain on Track

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Overig advies 06/09/2017 16:49
All dollar figures are in US dollars unless otherwise indicated)

TORONTO, Sept. 6, 2017 /CNW/ - New Gold Inc. ("New Gold") (TSX:NGD) (NYSE American:NGD) today provides an update on the construction of the company's Rainy River project, located in northwestern Ontario. Both the project schedule and capital cost estimate remain in line with New Gold's current plan (announced in late January 2017).

Rainy River August Highlights

The process plant underwent a successful closed loop mill test run with low grade ore
Ball mill and SAG mill tested successfully up to nameplate capacity
The mining rate during July averaged over 125,000 tonnes per day and accelerated to an average of over 135,000 tonnes per day in August
Water management pond is complete
All process facilities are mechanically complete
Ball mill, SAG mill and the leach carbon-in-pulp process circuits are fully commissioned
Water, tails and air systems in the plant are fully operational
The refining portion of the process circuit is to be commissioned in mid-September
Construction of the tailings management area (TMA) start-up cell is complete
Earthworks are 90% complete
Approval for design and construction of creek closures using sheet pile was received from the Ontario Ministry of Natural Resources and Forestry in August 2017

"We are very much looking forward to Rainy River's targeted start-up in the coming weeks," stated Hannes Portmann, President and Chief Executive Officer. "We made significant progress in August. Our mining rate increased to over 135,000 tonnes per day, we completed construction of the TMA start-up cell, and all process facilities are mechanically complete and in testing."

Consistent with New Gold's plan, the company should begin processing ore in mid-September. The estimated development capital cost from the beginning of this year to the targeted November 2017 commercial production remains $515 million.

Rainy River Project Photos
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