North of 60 Mining News - The mining newspaper for Alaska and Canada's North

Pebble Partnership copper gold molybdenum mine project Alaska Northern Dynasty NAK NDM

Mining Explorers 2011: New Gold Inc.


November 6, 2011


Executive Chairman: Randall Oliphant

President and CEO: Robert Gallagher

Vice President, Exploration: Mark Petersen

New Gold is an intermediate gold producer with cash flow positive operating assets in the United States, Mexico and Australia and development projects in Canada and Chile.

The company's portfolio includes the Blackwater Project in central British Columbia, which it acquired through the acquisition of Richfield Ventures Inc. in June.

Blackwater has a resource estimate including 1.8 million ounces of indicated gold resources and an additional 2.0 million ounces of inferred gold resources.

Since acquiring the project, New Gold said it has been very active in preparing for its continued exploration and development, including C$2.1 million in exploration expenditures at Blackwater in the second quarter.

On June 15, the company announced an expanded drill program that will see the company drill between 40,000 and 50,000 meters, or about 100 holes, in the second half of 2011.

New Gold successfully retained the majority of the project's geologic staff and consultants.

Site safety and environmental standards consistent with New Gold standards were established and the company commenced the implementation of a sustainability program including proposed sourcing from local communities and related discussions with local First Nations, government and regulatory officials.

A 5th drill rig was added on June 15, and more than 6,200 meters of drilling was completed in June (16 holes).

An upgrade of a 17-kilometer access road to the site was initiated, and New Gold commenced installation of a C$16 million upgraded 100-person operations camp, including associated infrastructure.

Work also continued on an environmental baseline program and tradeoff studies on potential site layouts.

In August, New Gold reported drill results including intersecting 278 meters grading 2.78 g/t gold in hole BW-179, starting at 83 meters depth.

New Gold Vice President, Exploration Mark Petersen said the drill results are a continuation of the company's efforts to identify the edges of the deposit, while also focusing on infill drilling in the core of the already established resource.

"We are excited about the results, in particular the higher grades seen in holes 176 and 179 and the extension of significant gold grades to the southwest as identified in hole 180," he added.

On Sept. 19, New Gold reported an updated NI 43-101-compliant mineral resource estimate for the Blackwater Project, including an indicated gold resource of 165 million metric tons grading 1.01 g/t containing 5.4 million ounces of gold; and an inferred gold resource of 39 million metric tons grading 0.94 g/t containing 1.2 million ounces of gold.

New Gold Oct. 17 said it agreed to acquire Silver Quest Resources Ltd. in a transaction valued at more than C$156 million.

The deal will give New Gold 100 percent interest in the Blackwater Project, including Silver Quest's 25 percent share in the northern Davidson Property, and 100 percent interest in Silver Quest's nearby Capoose gold and silver property, which covers more than 41,000 hectares (101,311 acres) about 25 kilometers (16 miles) west of the Blackwater Project.

In addition, New Gold will purchase a 9.9 percent stake, or about 3.5 million shares of a newly created Yukon Territory-focused company, McIntyre Minerals Inc. for C78 cents per share.

Silver Quest shareholders will hold the remaining 90.1 percent interest in McIntyre.

Cash and short-term deposits: C$490.4 million (June 30, 2011)

Working capital: C$483.9 million (June 30, 2011)

Market capitalization: C$5.32 billion (Sept. 23, 2011)

Suite 3110 - 666 Burrard St.

Vancouver, B.C., Canada V6C 2X8

Ph: 604 696-4100 • Fax: 604 696-4110


Reader Comments


Our Family of Publications Includes:

Powered by ROAR Online Publication Software from Lions Light Corporation
© Copyright 2019