TORONTO, Sept. 15, 2022 /CNW/ - New Gold Inc. ("New Gold" or the "Company") (TSX: NGD) (NYSE American: NGD) is pleased to provide an update on its Rainy River Mine following the heavy rainfall and flooding experienced around the Fort Frances area in northwestern Ontario during the second quarter of 2022. The Company is also providing an update on the advancement of the Intrepid underground zone.
"The team at Rainy River responded very well following the heavy rainfall and flooding during the second quarter," stated Renaud Adams, President & CEO. "Over the past month, efforts continued on dewatering the pit along with additional operational improvements to position the open pit to its optimal conditions. In July and August, Rainy River produced a total of approximately 41,000 gold equivalent ounces1 and the mine is well positioned to have a strong finish to 2022 and deliver on its updated guidance. In addition, we had our first stope blasted in the Intrepid zone, a significant milestone for the mine, and we look forward to the continued ramp-up in underground production over the coming months."
Open Pit Update
Significant progress was made on dewatering the open pit during the summer months, and as a result mining at the bottom of the pit is back on track. As of the beginning of September, mining from the Main ODM zone has commenced and will continue to ramp up in the coming months.
Open pit tonnes mined in July and August averaged approximately 21,000 ore tonnes mined per day, a 70% increase compared to the 12,295 tonnes mined per day during the second quarter. In July and August, the strip ratio materially decreased, averaging approximately 4:1 compared to 7.96:1 during the second quarter. The strip ratio is expected to average below 3:1 for the remainder of the year. Steps were taken over the summer to better position the open pit operations, and substantially complete all of the remaining glacial till waste stripping, with only approximately 2.4 million tonnes left to be mined beginning in the fourth quarter.
In July and August, tonnes milled averaged approximately 24,100 tonnes per calendar day, with efforts focused on improving the reliability of the mill while managing the harder ore material from the North Lobe. Gold equivalent1 production during July and August totaled approximately 41,000 ounces, and the operation remains on track to meet its updated annual gold equivalent guidance of 230,000 to 250,000 ounces.
Underground development advanced an additional 548 metres during July and August, with the main decline ramp reaching the 200 metre level ahead of plan. Underground production has commenced from the Intrepid zone with the first stope blasted on September 13th. Production from the Intrepid zone will continue to ramp-up over the coming months.
About New Gold
New Gold is a Canadian-focused intermediate mining Company with a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New Afton copper-gold mine. The Company also holds a 5% equity stake in Artemis Gold Inc., and other Canadian-focused investments. New Gold's vision is to build a leading diversified intermediate gold company based in Canada that is committed to the environment and social responsibility. For further information on the Company, visit www.newgold.com.
Total gold eq. ounces include silver produced converted to a gold equivalent. Gold eq. ounces are converted to a gold eq. based on a ratio of US$1,800 per gold ounce and US$24.00 per silver ounce for 2022 guidance estimates.