New Gold expects stronger finish to year at Rainy River
The third quarter had its challenges for Canadian miner New Gold, particularly around grade reconciliation at its cornerstone Rainy River mine, but CEO Renaud Adams said on Wednesday that the mine should see a stronger finish to the year.
The Rainy River mine, in Ontario, encountered lower-than-modelled gold grades in July and August resulting in New Gold last month slashing the mine’s guidance to between 240 000 and 250 000 gold-equivalent ounces (GEOs) and the group’s guidance to between 405 000 and 450 000 GEOs.
Adams expressed confidence that New Gold would achieve the new target.
Rainy River’s third-quarter gold grade was up 10% compared with the first half and the East Lobe, where the lower-than-expected grades were encountered, would contribute less to planned production than previous quarters.
The East Lobe would represent about 25% of planned production in the fourth quarter. Mining would focus on the ODM Center and ODM North zones and the gold grade was expected to increase in the quarter.
Rainy River’s third-quarter production was 60 785 GEO, a decrease compared with the prior-year period owing to lower tonnes milled.
The New Afton mine, in British Columbia, produced 44 843 GEOs in the quarter, also a decrease on the prior-year period, owing to lower tonnes milled.
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