New Gold on track for mid-Sept hot commissioning, budget remains steady

7th September 2017 By: Henry Lazenby - Creamer Media Deputy Editor: North America

VANCOUVER (miningweekly.com) – Project developer New Gold expects to start processing ore at the now 90%-complete Rainy River project, in Ontario, within the next two weeks, the company announced on Wednesday.

In line with the revised plan, commercial production at its $1-billion-plus project is expected to follow in November.

The Toronto-based company advised that all process facilities are mechanically complete, with the ball mill, the semi-autogenous grinding (SAG) mill and the leach carbon-in-pulp process circuits fully commissioned.

Water, tails and air systems in the plant are fully operational, and the refining portion of the process circuit will be commissioned in mid-September.

Meanwhile, construction of the tailings management area start-up cell is complete.

The mining rate during July averaged more than 125 000 t/d and accelerated to an average of more than 135 000 t/d in August. The process plant underwent a successful closed-loop mill test run with low-grade ore, and the ball mill and SAG mill were tested successfully up to nameplate capacity.

The project had been subject to significant delay and budget blowout, but the estimated development capital cost from the start of this year to the targeted November commercial production remains firm at C$515-million, the company said.

In August, the Ontario Ministry of Natural Resources and Forestry approved the design and construction of creek closures using sheet pile for its tailings management facility.