Image Credit: CFJC Today

By James Peters

New Afton Mine

New Gold announces New Afton mine life extension to 2030, more drilling toward Cherry Creek

Feb 13, 2020 | 11:19 AM

KAMLOOPS — New Gold, the international mining company that runs the New Afton copper-gold mine just west of Kamloops, has firmed up plans to extend the mine’s life to 2030.

In a webcast Thursday (Feb. 13), New Gold President and CEO Renaud Adams updated the public and shareholders about plans for New Afton, as well as the Rainy River mine in northwest Ontario.

Adams says over the next five years, the company plans to put $460 million into developing the New Afton C-zone, deeper and to the east of the current caves. The development will be self-funded by the company.

“(2020 to) 2024 remains very attractive in terms of production and cost and cash load, which could be reinjected into the growth capital that we’ve estimated at $460 million for the C-zone over that period, with some sustaining capital,” said Adams.

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New Afton C-zone (Image Credit: New Gold)

The company says all told, the mine is projected to produce nearly three million ounces of gold between now and the end of 2029.

It would deposit thickened and amended tailings (TAT) into the former New Afton mining pit.

In addition to the C-zone development, New Gold plans to ramp up exploration drilling to the west toward Cherry Creek in 2020.

In Tuesday’s presentation, Adams said test drilling has found “significant near-surface” gold deposits in an area about three kilometres from the current New Afton mill.

“The plan is very sound and, very interesting… we believe that we have pretty interesting exploration upside as we return to [drilling],” said Adams.

The exploration drilling is pending approval from the Ministry of Energy and Mines.

The New Afton mine employs about 500 people.