The Blackwater openpit gold and silver mine that TSX-listed New Gold is planning to build south-west of Prince George, British Columbia, has received the thumbs up from federal Environment and Climate Change Minister Catherine McKenna.
The Minister concluded, following an environmental assessment process, that the project would not cause significant adverse environmental effects when mitigation measures were taken into account and gave New Gold the green light to proceed with obtaining any additional permits from federal departments.
The Canadian Environmental Assessment Agency reported on Monday that the decision statement established 172 conditions that New Gold had to fulfil throughout the life of the project. These conditions would reduce or eliminate the potential effects on the environment and include measures to protect wetlands, fish and fish habitat, migratory birds, the current use of lands and resources by indigenous peoples, physical and cultural heritage and structures, and wildlife and species at risk.
"The Government of Canada is protecting the environment and growing the economy. By evaluating this project based on science and Indigenous knowledge, and putting in place legally-binding measures that will protect the environment, we are helping create economic growth and nearly 2 000 jobs for the community," McKenna said in a statement.
The proposed $1.8-billion project could create up to 1 500 jobs during construction and 495 during operations over the life of the project, according to a statement from the environmental agency.
The Blackwater technical report states that the mine will operate for 16 years. Over the first nine years of operation, the average feed grade will be 0.85 g/t gold and the average gold production will be 485 000 oz/y.
Total life-of-mine (LoM) metal production, including lower-grade stockpiles will be seven-million ounces of gold and 29.6-million ounces of silver. The average LoM cash costs, net of royalties and silver credits, is $670/oz.
New Gold also owns the Rainy River and New Afton mines in Canada, as well as the Cerro San Pedro mine, in Mexico.