MEASURED AND INDICATED RESOURCES (INCLUSIVE OF RESERVES):
Gold: 6.2 million ounces
Silver: 14.6 million ounces
ESTIMATED PRODUCTION AND COSTS:
For first nine years, 325,000 ounces of gold per year
All-in sustaining costs ($ per ounce): $736
Total cash costs per ounce (net of by-product sales): $613
Rainy River is an exciting new project in New Gold’s robust growth pipeline. Acquired in 2013 at an advantageous price, the Rainy River project provides New Gold with an asset that meets all of our key criteria including: solid returns with strong leverage to higher gold prices, manageable capital costs, a robust, long-lived production base with continued regional exploration potential, below industry average costs, and location in a great mining jurisdiction. New Gold has designated Rainy River the next project to be developed.
Located 50 kilometres northwest of the town of Fort Frances in Northwestern Ontario, the project is potentially the centre of a whole new gold district. Ideally located, it benefits from its proximity to existing infrastructure, including hydroelectric power, a railway line and a network of all-weather roads that branch off from well-maintained Trans-Canada Highways.
Slated as the next New Gold project for development, Rainy River is a natural fit for the Company, in that it is located in a politically secure, mining friendly jurisdiction, offers tax synergies with New Gold's other Canadian assets, and has compelling economics.
The Feasibility Study completed in early 2014 has attractive economics and targets commissioning in late 2016, with full production in 2017. Conventional open pit mining has been chosen as the primary method to mine the Rainy River deposit given the proximity of mineralization to the surface. Deeper, higher-grade portions of the deposit will be mined from underground thus leading to a higher average milled grade. The plan estimates a base 14-year mine life, with the underground mine scheduled to be developed once the open pit begins production. There will be direct processing of open pit and underground ore, at a rate of 21,000 tpd, for the first nine years, and processing of a combination of stockpile and underground ore thereafter. The 21,000 tpd process plant would use conventional crushing, grinding, leaching, carbon-in-pulp, and gold recovery technology to produce gold-silver doré.
In 2014, the team is moving forward with detailed engineering studies and environmental monitoring and permitting, with a view to getting all permits in place by late 2014 or early 2015. The project has submitted an Environmental Assessment (EA) report for review by federal and provincial agencies as well as local First Nations and Métis groups, who were already consulted extensively on a draft EA in 2013. During the year, the team will also begin ordering long-lead equipment and continue the exploration of the broader prospective region.
Exploration will complete condemnation drilling on future facility locations, and test the potential to expand the main open pit resources to the west. The program will explore prospective trends to the south of the main mine area and extending from the Intrepid Zone.
Once in full operation, Rainy River is expected to create approximately 600 permanent jobs. The construction workforce would be approximately 450 people. New Gold is committed to maximizing local employment and contracting opportunities. The Company plans to work collaboratively with community partners to prepare local workers and establish programs for specific training where necessary.
Already, New Gold is an active member of the local community with offices in both Emo and Thunder Bay, Ontario, that offer residents easily accessible locations to learn about the Rainy River project. Importantly, the Company is engaging local communities, including local First Nations and Métis members, in its project planning activities.
|Feasibility Study||Early 2014|
|First Nations & Public Consultation||2014–2015 (ongoing)|
|Permitting||Late 2014/Early 2015|
|Construction||2015–2016, with final construction in late 2016 during commissioning|
|Production||Late 2016, with full production in 2017|