Rainy River’s near-term guidance reduced
Canadian miner New Gold has lowered its consolidated gold-equivalent production outlook for 2021, following a reduction in the guidance of the Rainy River mine, in Ontario, where lower-than-modelled gold grades were encountered in July and August.
Rainy River’s gold-equivalent production for 2021 has been reduced to a range of between 240 000 oz and 255 000 oz and the group’s consolidated outlook has been lowered to a 405 000 to 450 000 oz range.
The company previously targeted gold-equivalent production of 440 000 oz to 490 000 oz.
All-in sustaining costs for each gold-equivalent ounce will increase to between $1 415 and $1 495, compared with the original guidance of $1 230 to $1 330.
“While the reduction in our near-term guidance at Rainy River is unfortunate, I remain confident that the mine has reached an inflection point, as evidenced by the free cash flow generated in the second quarter and the mine is on track to deliver an improved second half of the year,” stated president and CEO Renaud Adams on Monday.
New Gold is continuing with reverse circulation drilling in the East Lobe of Rainy River to gain a better understanding of the mineralisation. However, the company stated that additional drilling would be needed to refine the block model and to improve its predictability.
New Gold is advancing an underground optimisation study for Rainy River, with completion anticipated by year-end.
Consolidated copper production guidance remains unchanged at 56-million to 66-million pounds.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Sulzer South Africa, established in 1922, partners with critical industries like power, oil & gas, water, mining, and chemicals to boost...
VISIT SHOWROOM
The Aluminium Federation of South Africa (AFSA), is the voice of the South African aluminium industry.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
