File photo (Image Credit: CFJC Today)

By Aaron Schulze

C-Zone Project

New Gold laying off 85 employees at New Afton mine

Feb 17, 2026 | 11:07 AM

KAMLOOPS — Eighty-five employees at the New Afton gold and copper mine west of Kamloops will be out of work. 

In a news release issued Tuesday (Feb. 17) morning, New Gold announced most of the work on the New Afton mine’s C-Zone block cave project is complete and is transitioning to a “planned production-focused period.” The mine’s C-Zone began commercial production in late 2024. 

The layoffs come nearly three weeks after New Gold shareholders voted overwhelmingly to sell the Canadian mining company that operates the New Afton mine to Coeur Mining, a U.S.-based precious metals producer. 

However, New Gold says the layoffs are part of the New Afton C-Zone project cycle and they are unrelated to Coeur Mining’s planned acquisition. 

“We recognize the impact on our employees, their families and the community, and remain dedicated to supporting those employees who are impacted,” New Gold states. “Production growth at New Afton Mine is expected to increase year-over-year for the next three years with C-Zone in production.” 

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New Gold adds it continues to explore opportunities to extend the New Afton mine’s life beyond 2031. 

In 2025, New Gold announced its plans to increase its exploration budget for the New Afton mine west of Kamloops by $5 million as its K-Zone has more than doubled in size. 

New Gold says the goal of the 2025 budget increase is to report a maiden mineral resource for New Afton’s K-Zone in the year-end estimates and advance a feasibility study for K-Zone later in 2026. 

Meantime, the company says the 85 employees who are impacted by the layoffs will be informed one-on-one on Tuesday and Wednesday (Feb. 18).