VANCOUVER,
Aug. 28, 2013 /CNW/ - New Gold Inc.
("New Gold") (TSX and NYSE MKT:NGD) today announces that a minor
pit wall movement occurred at its Cerro San Pedro Mine in
Mexico on August 23, 2013. Approximately 800,000 tonnes of
material moved on the northeast pit wall. Importantly, no one was
injured, however, as a precautionary measure, mining in the area
below the pit wall movement has been temporarily suspended. New
Gold is working with geotechnical experts to evaluate the area and
assess the impact on the company's near-term mine plan and
production at Cerro San Pedro. The objective is to develop a plan
for the safe resumption of mining in the area below the movement,
however, if it is determined that this area will not be accessible
until the next phase of mining, scheduled to take place in 2014,
the company's preliminary estimate is that approximately 15,000
ounces of gold production would be carried forward from 2013 into
future periods. The cost to mine and recover these ounces is not
expected to increase by a material amount.
"Our primary focus is on ensuring the safety of
our team and, as a result, we have stopped mining activity below
the area of the ground movement," stated Robert Gallagher, President and Chief Executive
Officer. "We are currently assessing the ground conditions and plan
to adjust our mine plan to maximize our 2013 production, however,
any ounces that cannot be accessed this year as a result of the
slide are expected to be mined in the coming two years."
Separately, in the last month, recoveries from
the Cerro San Pedro leach pad have been below the company's
targets. New Gold is evaluating various alternatives to restore the
recovery rates to historical levels.
New Gold anticipates that Cerro San Pedro's 2013
production will be below original expectations, however, efforts to
mitigate the impact of the pit wall movement and lower recovery
rates are already underway. New Gold will provide further details
on the 2013 outlook for Cerro San Pedro, including the amount of
production that is expected to be carried forward to future
periods, as well as any potential impact on the consolidated
company as part of its third quarter results.
About New Gold Inc.
New Gold is an intermediate gold mining company. The company has a
portfolio of four producing assets and three significant
development projects. The New Afton Mine in Canada, the Cerro San
Pedro Mine in Mexico, the Mesquite Mine in the United States and
the Peak Mines in Australia provide the company with its production
base and solid foundation. In addition, New Gold owns 100% of the
Blackwater project and 97% of the Rainy River project, both in
Canada, as well as 30% of the El Morro project located in Chile.
New Gold's objective is to continue to establish itself as a
leading intermediate producer, focused on the environment,
sustainability and generating peer-leading shareholder returns. For
further information on the company, please visit
www.newgold.com. |
Cautionary Note Regarding Forward-Looking
Statements
Certain information contained in this news
release, including any information relating to New Gold's future
financial or operating performance may be deemed "forward looking".
All statements in this news release, other than statements of
historical fact, that address events or developments that New Gold
expects to occur, are "forward-looking statements". Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the use of forward-looking
terminology such as "plans", "expects", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates",
"projects", "potential", "believes" or variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "should", "might" or "will be taken",
"occur" or "be achieved" or the negative connotation. Forward
looking statements in this release include, among others,
statements regarding future production levels at Cerro San Pedro
and future costs. All forward-looking statements are based on the
opinions and estimates of management as of the date such statements
are made and are subject to important risk factors and
uncertainties, many of which are beyond New Gold's ability to
control or predict. Forward-looking statements are necessarily
based on estimates and assumptions that are inherently subject to
known and unknown risks, uncertainties and other factors that may
cause actual results, level of activity, performance or
achievements to be materially different from those expressed or
implied by such forward-looking statements. Such factors include,
without limitation: significant capital requirements; fluctuations
in the international currency markets and in the rates of exchange
of the currencies of Canada,
the United States and Mexico; price volatility in the spot and
forward markets for commodities; discrepancies between actual and
estimated production, between actual and estimated reserves and
resources and between actual and estimated metallurgical
recoveries; changes in international, national and local government
legislation in Mexico; taxation;
controls, regulations and political or economic developments in the
countries in which New Gold does or may carry on business; the
speculative nature of mineral exploration and development,
including the risks of obtaining and maintaining the validity and
enforceability of the necessary licenses and permits and complying
with the permitting requirements of each jurisdiction that New Gold
operates, including, but not limited to, in Mexico where the Cerro San Pedro mine has a
history of ongoing legal challenges related to our EIS; the lack of
certainty with respect to foreign legal systems, which may not be
immune from the influence of political pressure, corruption or
other factors that are inconsistent with the rule of law;
diminishing quantities or grades of reserves; loss of key
employees; additional funding requirements; changes in project
parameters as plans continue to be refined; accidents; labour
disputes; and defective title to mineral claims or property or
contests over claims to mineral properties. In addition, there are
risks and hazards associated with the business of mineral
exploration, development and mining, including environmental
hazards, industrial accidents, unusual or unexpected formations,
pressures, cave-ins, geotechnical failures, flooding and gold
bullion losses (and the risk of inadequate insurance or inability
to obtain insurance to cover these risks) as well as "Risk Factors"
included in New Gold's disclosure documents filed on and available
at www.sedar.com.
Forward-looking statements are not guarantees of
future performance, and actual results and future events could
materially differ from those anticipated in such statements. All of
the forward-looking statements contained in this news release are
qualified by these cautionary statements. New Gold expressly
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
events or otherwise, except in accordance with applicable
securities laws.
SOURCE New Gold Inc.