VANCOUVER, March 3 /PRNewswire-FirstCall/ -- New Gold Inc. ("New
Gold") (TSX and NYSE Alternext US: NGD) today reports consolidated
mineral reserve and resource statements for its mines and
development projects as of December 31, 2008. These include updated
mineral reserve and resource statements for the Peak and Cerro San
Pedro mines, an updated mineral resource statement for the Amapari
mine, and previously reported mineral reserve and resource
statements for the New Afton development project and the 30% owned
El Morro development project. A consolidated summary of total gold,
silver and copper contained within New Gold's global mineral
reserves and resources is provided in the table below.
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New Gold Mineral Reserves & Resources Summary as of December
31, 2008
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Contained Metal ---------------------------------- Gold Silver
Copper M oz M oz M lbs
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Reserves(1)(3)-(6) Proven 2,427 49,929 931 Probable 2,394 4,753
1,819 -------- -------- -------- Total P&P 4,821 54,682 2,750
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Resources(2)(7)-(13) Measured 4,437 63,284 2,025 Indicated 3,528
5,574 1,612 -------- -------- -------- Total M&I 7,965 68,858
3,637 Inferred 1,793 1,679 361
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Notes to the mineral reserve and resource statements are provided
in a separate table below.
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Further details of New Gold's mineral reserves and resources for
its mines and development projects are provided below and are also
available in the respective NI 43-101 Technical Reports referenced
below. Mineral Reserves The updated mineral reserve statements for
the Peak and Cerro San Pedro mines have been calculated based on
long-term metal prices of US$750/oz for gold, US$10.00/oz for
silver and US$2.00/lb for copper and updated costs for mining and
processing at the respective mine operations. The Peak Mines
operation is located in New South Wales, Australia and the Cerro
San Pedro mine is located in San Luis Potosi, Mexico. Updated
mineral reserve statements for the Peak and Cerro San Pedro mines
are presented in the table below:
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Mineral Reserve Statement - Peak and Cerro San Pedro Mines as of
December 31, 2008
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Metal Grade Contained Metal
------------------------------------------------------- Tonnes Gold
Silver Copper Gold Silver Copper 000's g/t g/t % Koz Koz M lbs
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Peak Mine(1)(3)(13) Proven 1,048 3.96 - 0.95 133 - 22 Probable
2,557 4.60 - 0.96 380 - 54 ------- ------- ------- ------- -------
Peak P&P 3,605 4.41 - 0.96 514 - 76
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Cerro San Pedro (1)(4)(13) Proven 69,640 0.55 22.3 - 1,231 49,929 -
Probable 2,054 0.52 22.9 - 34 1,512 - ------- ------- -------
------- ------- CSP P&P 71,694 0.55 22.3 - 1,266 51,441 -
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Notes to the mineral reserve statements are provided in a separate
table below.
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The updated mineral reserve statement for the Peak Mines represents
a 40% increase in total contained gold and a 175% increase in total
contained copper over mineral reserves reported previously in a
March 2007 NI 43-101 Technical Report. These positive increases
effectively offset reserve depletion due to mine production during
2007 and 2008 and are due largely to delineation drilling and
improved mine design to convert mineral resources to mineral
reserves as well as the application of higher metals prices. An
updated NI 43-101 Technical Report for the Peak Mines will be filed
within 45 days of this press release. The updated mineral reserve
statement for the Cerro San Pedro mine represents a 17% decrease in
both contained gold and silver over mineral reserves reported
previously in a March 2007 NI 43-101 Technical Report. These
decreases are due entirely to reserve depletion from mining since
commercial production commenced in May 2007, consistent with the
Cerro San Pedro life-of-mine plan. Mineral reserve statements for
the company's 100% owned New Afton and 30% owned El Morro
development projects are presented in the tables below.
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Mineral Reserve Statement - New Afton and El Morro Projects
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Metal Grade Contained Metal
------------------------------------------------------- Tonnes Gold
Silver Copper Gold Silver Copper 000's g/t g/t % Koz Koz M lbs
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New Afton(1)(5)(13) Proven - - - - - - - Probable 44,400 0.72 2.30
0.98 1,028 3,240 959 ------- ------- ------- ------- -------
------- ------- New Afton P&P 44,400 0.72 2.30 0.98 1,028 3,420
959
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El Morro(1)(6)(13) 100% basis 30% basis
------------------------------------------------------- Proven
62,542 0.53 - 0.66 1,062 - 909 Probable 72,528 0.41 - 0.50 951 -
806 ------- ------- ------- ------- ------- El Morro P&P
135,070 0.46 - 0.58 2,013 - 1,715
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Notes to the mineral reserve statements are provided in a separate
table below.
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The mineral reserve statements for the New Afton and El Morro
projects have been reported previously in NI 43-101 Technical
Reports completed in May 2007 and May 2008, respectively. The New
Afton project is located in British Columbia, Canada. The El Morro
project is located in Region III, Chile. New Gold holds a 30%
interest in the El Morro project, with project operator Xstrata plc
holding the remaining 70% interest. Mineral Resources Updated
mineral resource statements for the Peak, Cerro San Pedro and
Amapari mines and the New Afton and El Morro development projects,
inclusive of mineral reserves, as of December 31, 2008, are
presented in the table below:
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Mineral Resource Statement as of December 31, 2008
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Metal Grade Contained Metal
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Measured & Indicated Tonnes Gold Silver Copper Gold Silver
Copper Resources 000's g/t g/t % Koz Koz M lbs
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Peak(2)(7)(13) Measured 2,405 3.75 - 1.02 290 - 54 Indicated 3,694
4.71 - 1.00 559 - 82 ------- ------- ------- ------- ------- Peak
M&I 6,099 4.33 - 1.01 849 - 136 Cerro San Pedro (2)(8)(13)
Measured 90,160 0.55 20.6 - 1,597 59,557 - Indicated 6,370 0.46
18.7 - 94 3,830 - ------- ------- ------- ------- ------- CSP
M&I 96,530 0.54 20.4 - 1,691 63,387 - Amapari(2)(9)(13)
Measured 8,700 1.03 - - 288 - - Indicated 14,249 1.85 - - 848 - -
------- ------- ------- Amapari M&I 22,949 1.54 - - 1,136 - -
New Afton(2)(10)(13) Measured 43,250 0.83 2.68 1.12 1,154 3,727
1,068 Indicated 22,410 0.66 2.42 0.84 476 1,744 415 ------- -------
------- ------- ------- ------- ------- New Afton M&I 65,660
0.77 2.59 1.02 1,630 5,471 1,483
------------------------------------------------------- El
Morro(2)(11)(13) 100% basis 30% basis
------------------------------------------------------- Measured
211,164 0.54 - 0.65 1,108 - 903 Indicated 347,242 0.46 - 0.49 1,551
- 1,115 ------- ------- ------- ------- ------- El Morro M&I
558,406 0.49 - 0.55 2,659 - 2,018
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Inferred Tonnes Gold Silver Copper Gold Silver Copper Resources(12)
000's g/t g/t % Koz Koz M lbs
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Peak Mines 2,713 4.50 - 0.90 388 - 52 Cerro San Pedro 1,658 0.47
24.1 - 25 1,283 - Amapari 13,716 2.37 - - 1,045 - - New Afton 7,940
0.88 1.6 0.96 225 396 168 El Morro 62,335 0.18 - 0.34 110 - 141
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Notes to the mineral resource statements are provided in a separate
table below.
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The updated measured and indicated mineral resource statement for
the Peak Mines represents an approximate 3 to 5 % increase in total
contained gold and an approximate 15 to 20% increase in total
contained copper over mineral resources reported previously in a
March 2007 NI 43-101 Technical Report. These percentage estimates
are an approximation as the previous mineral resource statement for
the Peak Mines was presented exclusive of mineral reserves. These
increases in contained gold and copper are due largely to
exploration and delineation drilling to develop additional
resources and upgrade inferred resources to measured and/or
indicated status and to the application of higher metal prices used
to constrain the mineral resource estimate. The updated measured
and indicated mineral resource statement for the Cerro San Pedro
mine represents an approximate 17% decrease in both contained gold
and silver over mineral resources reported previously in a March
2007 NI 43-101 Technical Report. As noted in the reserves section
above, these decreases are due entirely to resource depletion from
mining since commercial production commenced in May 2007,
consistent with the Cerro San Pedro life-of-mine plan. The updated
measured and indicated mineral resource statement for the Amapari
mine represents an approximate 11% increase in total contained gold
over mineral resources reported previously in a September 2007 NI
43-101 Technical Report. This increase is due largely to a
combination of remodeling of the deposit and the addition of a
significant amount of new delineation drilling information to the
mineral resource estimate. No mineral reserves are reported for the
Amapari mine following its placement on care and maintenance in
January 2009. The mineral resource statements for the New Afton and
El Morro projects have been reported previously in NI 43-101
Technical Reports completed in May 2007 and May 2008 respectively.
The Qualified Persons as defined under Canadian NI 43-101
responsible for the preparation of the Mineral Reserve and Resource
Statements presented herein are listed below:
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Qualified Persons for New Gold Mineral Reserve & Resource
Statements
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Peak Mines Reserves Mr. Eric Strom, P.Eng. and Technical Services
Superintendent for Peak Mines Ltd. Resources Mr. Rex Berthelsen,
Member AusIMM and Principal Geologist for New Gold Inc. Cerro San
Pedro Mine Reserves Mr. William L. Rose, P.E. and Principal Mining
Engineer for WLR Consulting, Inc. Resources Mr. William L. Rose,
P.E. and Principal Mining Engineer for WLR Consulting, Inc. Amapari
Mine Resources Mr. Rex Berthelsen, Member AusIMM and Principal
Geologist for New Gold Inc. New Afton Project Reserves Mr. Mike
Thomas, Member AusIMM and Principal Mining Consultant for AMC
Consultants Pty Ltd. Resources Mr. David Rennie, P. Eng. and
Consulting Geological Engineer for Scott Wilson Roscoe Postle
Assoc. El Morro Project Reserves Mr. Richard J. Lambert, P. E. and
Principal Mining Engineer for Pincock, Allen & Holt Inc.
Resources Mr. Barton G. Stone, P. Geo. and Chief Geologist for
Pincock, Allen & Holt Inc.
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Notes to Mineral Reserve & Resource Statements
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1) Mineral reserves are contained within measured and indicated
mineral resources. Measured and indicated mineral resources that
are not mineral reserves do not have demonstrated economic
viability.
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2) Mineral resources for all mines and development projects have
been estimated using industry standard three-dimensional
geostatistical block model estimation methods (e.g. one or a
combination of ordinary kriging, multiple indicator kriging or
inverse distance to an exponential power) constrained by geological
and metal grade domains in accordance with the standards of the
Canadian Institute of Mining, Metallurgy and Petroleum and National
Instrument 43-101, or the AusIMM JORC equivalent.
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3) Peak Mines mineral reserves have been calculated based on a gold
price of US$750/oz, a copper price of US$2.00/lb and variable lower
NSR cut-offs ranging from AUD$112/t to AUD$130/t that vary between
individual mines and their proximity to the Peak operation
processing facility.
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4) Cerro San Pedro mineral reserves have been calculated based on a
gold price of US$750/oz, a silver price of US$10.00/lb and a lower
NSR cut-off of US$2.64/t.
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5) New Afton mineral reserves have been calculated based on a gold
price of US$475/oz, a copper price of US$1.45/lb and a lower NSR
cut-off of CAD$15/t of ore.
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6) El Morro mineral reserve tonnes and grade are reported on a 100%
basis; contained metals are reported on a 30% basis to reflect New
Gold's 30% ownership interest in the project. Mineral reserves have
been calculated based on a gold price of $500/oz, a copper price of
US$1.25/lb and a lower cut-off of 0.30% copper-equivalent ("EqCu")
where EqCu(%) = Cu(%) + 0.592 x Au (g/t) and Cu(%) = percent
copper, Au (g/t) = grams per tonne gold
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7) Peak Mines mineral resources have been estimated based on a gold
price of US$750/oz, a copper price of US$2.00/lb and variable lower
NSR cut-offs ranging from AUD$85/t to AUD$95/t that vary between
individual mines and their proximity to the Peak operation
processing facility.
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8) Cerro San Pedro mineral resources have been estimated based on a
gold price of US$1000/oz, a silver price of US$21/oz and a lower
grade cut-off of 0.2 g/t gold and are constrained within an
economically constrained "mineral resource pit" that uses the same
cost and metal recovery parameters used to define mineral reserves
as of December 31, 2008.
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9) Amapari mineral resources have been estimated based on a gold
price of US$750/oz and a variable lower grade cut-offs ranging from
0.6 g/t to 0.8 g/t gold for open pit oxide and sulphide resources
and 1.7 g/t gold for underground sulphide resources that vary
between individual mineral resources and their proximity to the
Amapari operation processing facility.
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10) New Afton mineral resources have been estimated based on a gold
price of US$450/oz, a silver price of US$5.25/oz, a copper price of
US $1.20/lb and a lower NSR cut-off of CAD$10.00/t of mineralized
material.
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11) El Morro mineral resource tonnes and grade are reported on a
100% basis; contained metals are reported on a 30% basis to reflect
New Gold's 30% ownership interest in the project. El Morro mineral
resources have been estimated based on a gold price of US$500/oz, a
copper price of US$1.25/lb and a lower grade cut-off of 0.3%
copper-equivalent ("EqCu") where EqCu(%) = Cu(%) + 0.592 x Au (g/t)
and Cu(%) = percent copper, Au (g/t) = grams per tonne gold Mineral
resources are based on an economically constrained "mineral
resource pit" that uses the same cost and metal recovery parameters
used to define mineral reserves as described in the May 2008 NI
43-101 technical report for the project.
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12) Inferred mineral resources are not known with the same degree
of certainty as measured and indicated resources, do not have
demonstrated economic viability, and are exclusive of mineral
reserves.
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13) Numbers may not add due to rounding.
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New Gold is an intermediate gold mining company with operating
assets in Mexico and Australia and two development projects in
Canada and Chile. For further information on New Gold, please visit
our website at http://www.newgold.com/. CAUTIONARY NOTE REGARDING
FORWARD-LOOKING STATEMENTS Certain information contained in this
press release, including any information relating to New Gold's
future financial or operating performance, may be deemed "forward
looking". All statements in this press 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 words
"expects", "does not expect", "plans", "anticipates", "does not
anticipate", "believes", "intends", "estimates", "projects",
"potential", "scheduled", "forecast", "budget" and similar
expressions, or that events or conditions "will", "would", "may",
"could", "should" or "might" occur. All such forward looking
statements 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 New Gold's 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: the results of the preliminary economic assessment
assessing the viability of a new process facility at Amapari; New
Gold's operations are subject to significant capital requirements;
fluctuations in the international currency markets and in the rates
of exchange of the currencies of Canada, the United States,
Australia, Brazil, Mexico and Chile; price volatility in the spot
and forward markets for commodities; impact of any hedging
activities, including margin limits and margin calls; discrepancies
between actual and estimated production, between actual and
estimated reserves and resources and between actual and estimated
metallurgical recoveries; changes in national and local government
legislation in Canada, the United States, Australia, Brazil, Mexico
and Chile or any other country in which New Gold currently or may
in the future carry on business; 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 necessary licenses and permits; diminishing quantities or
grades of reserves; competition; loss of key employees; additional
funding requirements; actual results of current exploration or
reclamation activities; changes in project parameters as plans
continue to be refined; accidents; labour disputes; 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, flooding and gold
bullion losses (and the risk of inadequate insurance or inability
to obtain insurance, to cover these risks) as well as "Risks and
Uncertainties" included in New Gold's MD&A filed on November
12, 2008, and available at http://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 press 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. CAUTIONARY NOTE TO
U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND
INFERRED MINERAL RESOURCES Information concerning the properties
and operations of New Gold has been prepared in accordance with
Canadian standards under applicable Canadian securities laws, and
may not be comparable to similar information for United States
companies. The terms "Mineral Resource", "Measured Mineral
Resource", "Indicated Mineral Resource" and "Inferred Mineral
Resource" used in this press release are Canadian mining terms as
defined in accordance with NI 43-101 under guidelines set out in
the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM")
Standards on Mineral Resources and Mineral Reserves adopted by the
CIM Council on December 11, 2005. While the terms "Mineral
Resource", "Measured Mineral Resource", "Indicated Mineral
Resource" and "Inferred Mineral Resource" are recognized and
required by Canadian regulations, they are not defined terms under
standards of the United States Securities and Exchange Commission.
Under United States standards, mineralization may not be classified
as a "reserve" unless the determination has been made that the
mineralization could be economically and legally produced or
extracted at the time the reserve calculation is made. As such,
certain information contained in this press release concerning
descriptions of mineralization and resources under Canadian
standards is not comparable to similar information made public by
United States companies subject to the reporting and disclosure
requirements of the United States Securities and Exchange
Commission. An "Inferred Mineral Resource" has a great amount of
uncertainty as to its existence and as to its economic and legal
feasibility. It cannot be assumed that all or any part of an
"Inferred Mineral Resource" will ever be upgraded to a higher
category. Under Canadian rules, estimates of Inferred Mineral
Resources may not form the basis of feasibility or other economic
studies. Readers are cautioned not to assume that all or any part
of Measured or Indicated Resources will ever be converted into
Mineral Reserves. Readers are also cautioned not to assume that all
or any part of an "Inferred Mineral Resource" exists, or is
economically or legally mineable. In addition, the definitions of
"Proven Mineral Reserves" and "Probable Mineral Reserves" under CIM
standards differ in certain respects from the standards of the
United States Securities and Exchange Commission. DATASOURCE: New
Gold Inc. CONTACT: Melanie Hennessey, Vice President Investor
Relations, New Gold Inc., Direct: (604) 639-0022, Toll-free:
1-888-315-9715, Email: , Website: http://www.newgold.com/
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