New Gold Inc. has announced the results of the feasibility study for its Blackwater gold project in central British Columbia. “Completion of the Blackwater feasibility study is an important milestone for our company,” New Gold Executive Chairman Randall Oliphant said. “The project has many great attributes, including its secure jurisdiction, long life, robust production potential, all-in sustaining costs well below industry average, and continued exploration potential.
“However, the combination of gold being down by more than $500/oz since we completed the preliminary economic assessment for Blackwater in September of 2012, and our Rainy River project in western Ontario having a more modest capital requirement results in our primary objective being the advancement of Rainy River.”
“Importantly, Rainy River shares all of Blackwater’s strong project characteristics. An updated feasibility study for Rainy River remains on schedule for completion in early 2014,” he said.
New Gold will continue to move the Blackwater project through the permitting phase in 2014. The company views the potential of having a fully permitted project as an important and valuable asset. In the current market environment, where there has been significant commodity price volatility, New Gold wants to maximize its flexibility in respect of any future development decisions. The timing of Blackwater development will be driven by market conditions over the coming years.