#Canada #Toronto #New Gold Inc #New Afton #Rainy River

New Gold's Mine Life Extension Announcement

New Gold Inc., a leading mining company, has made significant announcements regarding its operations at the New Afton and Rainy River mines. The company is thrilled to share a comprehensive three-year operational outlook along with updated technical reports for both sites. These reports, prepared in accordance with the National Instrument 43-101 standards, provide valuable insights for investors and stakeholders.

Extended Mine Life and Production Outlook

President and CEO Patrick Godin expressed optimism about the extended mine lives due to a combination of successful exploration efforts and strategic planning. New Afton has seen a 15% increase in copper reserves and a 13% increase in gold reserves, while the C-Zone's draw height extension has further secured its mine life until 2031 without additional capital costs. The introduction of the East Extension project adds high-grade material to improve production efficiency during the C-Zone operation.

At Rainy River, a strategic push is in place for the open pit extension through a Phase 5 expansion. This new plan will maintain mill capacity until the end of 2029 and allows low-grade stockpile processing well into the future. The overarching theme for both mines is robust cash flow generation and asset value enhancement, which signals significant upward trends in production and safety measures.

Financial Projections and Cost Management

New Gold's financial forecasts indicate a significant free cash flow generation through 2025, following a successful inflection point reached in 2024. Consolidated gold production is expected to rise by approximately 16% to between 325,000 and 365,000 ounces, predominantly driven by Rainy River’s increased output. Cost management strategies are in place to lower all-in sustaining costs substantially and maintain competitive operational margins.

Both mines are set to reap the rewards from strategic capital investments, with a projected reduction in unit costs and overall operational expenditures across the next three years. According to Godin, the emphasis on optimization of existing reserves will continue to unlock value for stakeholders.

Robust Exploration Initiatives

In addition to the promising operational outlook, New Gold's exploration budget of approximately $30 million for 2025 highlights the company’s commitment to organic growth. There is a strong focus on the K-Zone development, with existing operations expanding to uncover new copper-gold zones. Exploration success from recent campaigns has been promising, and the new underground exploration drift expected in 2025 will further facilitate these efforts.

Overall, the updated life-of-mine plans present a solid foundation for New Gold. With ongoing explorations and the implementation of cost-effective measures, the company is confident in achieving its production targets while ensuring environmental sustainability and community engagement.

For more details on operational forecasts and operational changes, stakeholders can participate in a conference call hosted by the company on February 13, 2025. Registration is available via New Gold’s website or through designated conference call lines.