KAMLOOPS — A feasibility study released by New Gold today suggests the New Afton mine just outside Kamloops might have more life in it than first thought.
While the operation is currently extracting ore from the so-called B-zone of its property, the feasibility study looked into going deeper – into the C-zone.
Executive Vice President of Business Development Hannes Portmann says the study found there is plenty of ore in that zone, and the economics make sense for the company as well.
Portmann says if New Gold decides to go forward with mining the C-zone, it would extend the mine’s life.
“Assuming prevailing economic conditions are such that moving forward the C-zone makes sense for New Gold as a business, this could all dovetail quite nicely such that when the B-zone reserves are completed you basically have your C-zone developed and ready to go such that you continue mining that area,” said Portmann.
The estimated closure date for the B-zone currently being mined is 2022.
Portmann says he expects New Gold will make an investment decision in mid-2017.
