Life of New Gold mine could be extended with new exploration

Staff

New exploration opportunities, and freed up cash to explore them, may enable New Gold to continue production longer than expected.

New Gold’s Rainy River’s mine is currently expected to last until 2031. The company has been busy expanding into the underground portion of the project. But with that complete, the company has the time and resources to resume exploration, according to a three-year operational forecast, released earlier this month.

It is investing US $5 million to extend its current zones, and investigate potential new ones. Mining has also begun underground in the “Intrepid Zone”, located east of the pit.

The company said there’s gold potential near the surface, which could be extracted by open-pit methods, and mineralization deeper down in a gap between the Intrepid and Main Zones.

New Gold president-CEO Patrick Godin stated in the forecast that the company is poised to “unlock the long-term value of our operations.”