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New Gold lifts 2012 production as BC mine operates first full year

6th February 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Midtier Canadian gold miner New Gold has lifted its 2012 gold production by 6% to 411 892 oz, up from 387 155 oz produced in 2011, mainly as a result of the successful start-up of the New Afton mine, in British Columbia (BC).

The company said that despite a 12% increase during the year in gold production at the Peak mines, in Australia, owing to improved grades and recoveries, and production declines at Mesquite, in the US, and Cerro San Pedro, in Mexico, lower grades were being placed on the leach pads as planned, owing to mine sequencing.

Total cash costs per ounce sold declined by $25/oz to $421/oz.

New Afton mine, situated 10 km west of Kamloops and which restarted production in June 2012, produced 36 800 oz of gold and 28.5-million pounds of copper.

New Gold produced 1.9-million ounces of silver and a total of 42.7-million ounces of copper during the year.

This year the company is targeting 12% gold-production growth, to between 440 000 oz and 480 000 oz, and New Gold expects a doubling of copper production to drive costs down further to between $265/oz and $285/oz, when the New Afton mill had reached a sustainable throughput of 12 000 t/d.

The company said it expects to complete a feasibility study for its Blackwater project, also located in BC.

New Gold’s stock traded at C$10.02 apiece on the TSX on Wednesday.

Edited by Creamer Media Reporter

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