Benzinga | Jul 15, 2021 05:02PM EDT

New Gold Reports Q2 Total Production 105.705K Gold Equivalent Oz.

New Gold Inc. ("New Gold" or the "Company") (TSX:NGD) and (NYSE:NGD) reports second quarter operational results for the Company as of June 30, 2021. The Company is also providing notice that it will release its second quarter 2021 financial results before market on Wednesday, August 11, 2021. A conference call and webcast will follow at 8:30 am Eastern Time (details are provided at the end of this news release).

"Our operations continued to advance their primary objectives during the quarter. Rainy River had another solid operational quarter and is positioned to have a stronger second half of production. As we start the third quarter, the mine has now successfully transitioned from focusing on stripping, and we are now seeing a marked improvement in grades through the first half of July. At New Afton, mining rates were up more than 30% over the first quarter as underground operations returned to pre-incident levels. With the B3 permit now in hand, the focus shifts to a safe execution of the extraction of the B3 zone during the second half of the year," stated Renaud Adams, President & CEO. "Lastly, I would like to highlight the publication of our 2020 Sustainability Report in the quarter. Sustainability and our approach to pressing ESG issues remain central to our success, and I am very proud of the work our team has done to deliver this report."

Second Quarter Highlights

* Total production was 105,705 gold equivalent1 ("gold eq.") ounces (66,989 ounces of gold, 240,029 ounces of silver and 18.2 million pounds of copper)

* The Rainy River Mine produced 55,163 gold eq.1 ounces (52,901 ounces of gold and 162,879 ounces of silver)

* The New Afton Mine produced 50,542 gold eq.1 ounces (14,088 ounces of gold and 18.2 million pounds of copper)

* During the quarter, the Company announced that the Mines Act permit enabling mining of the B3 zone was issued by the Ministry of Energy, Mines and Low Carbon innovation (refer to the Company's May 25, 2021 news release for further information)

* The Company's 2020 Sustainability Report was published on June 4, 2021, and can be found on the New Gold website

* At the end of the quarter, the Company had a cash position of $138 million and a strong liquidity position of $464 million

Consolidated Operational Highlights

Q2 2021Q2 2020H1 2021H1 2020

Gold eq. production (ounces)1105,70598,079 201,731201,514

Gold production (ounces) 66,989 64,294 133,639131,084

Copper production (Mlbs) 18.2 16.9 32.0 35.4

Rainy River Mine

Operational Highlights

Rainy River Mine Q2 2021Q2 2020H1 2021H1 2020

Gold eq. production (ounces)155,163 49,633 111,676100,739

Gold eq. sold (ounces)1 57,304 47,873 110,881101,411

Gold production (ounces) 52,901 48,800 107,55799,181

Gold sold (ounces) 55,062 47,064 106,85799,846

Operating Key Performance Indicators

Rainy River Mine (Open Pit Mine only)Q2 2020Q3 2020Q4 2020Q1 2021Q2 2021

Tonnes mined per day (ore and waste) 126,512145,701158,638150,767158,556

Ore tonnes mined per day 23,101 36,515 42,918 35,681 36,256

Operating waste tonnes per day 72,575 62,818 73,921 65,643 71,124

Capitalized waste tonnes per day 30,836 46,368 41,799 49,442 51,176

Total waste tonnes per day 103,411109,186115,720115,085122,300

Strip ratio (waste:ore) 4.48 2.99 2.70 3.23 3.37

Tonnes milled per calendar day 23,880 26,998 26,999 26,301 25,349

Gold grade milled (g/t) 0.78 0.88 0.93 0.80 0.82

Gold recovery (%) 89 89 90 89 87

Mill availability (%) 90 90 94 89 88

Gold production (ounces) 48,800 63,004 66,734 54,656 52,901

Gold eq. production (ounces)1 49,633 64,221 68,241 56,513 55,163



* Second quarter gold eq.1 production was 55,163 ounces (52,901 ounces of gold and 162,879 ounces of silver). Lower gold grades were expected during the first half of the year as mining operations were focused on stripping to bring pit walls to the final pit limit. During the second half of the year, grades are expected to increase as the mine returns to higher-grade areas of the pit. The 11% increase compared to the prior-year period is due to higher tonnes processed and higher gold grades.

* The open pit mine achieved 158,556 tonnes per day, a 5% increase over the prior quarter, and exceeding the 2021 target of ~151,000 tonnes per day. Approximately 3.3 million ore tonnes and 11.1 million waste tonnes (including 4.7 million capitalized waste tonnes) were mined from the open pit at an average strip ratio of 3.37:1. As planned, during the second half of the year, the strip ratio is expected to decrease.

* The mill processed 25,349 tonnes per day for the quarter, lower than the prior period due to unplanned maintenance activities performed at the mill during the quarter impacting mill availability and operating time. The mill is expected to operate at 27,000 tonnes per day in the second half of the year. The mill continued to process ore directly supplied by the open pit combined with ore from the medium grade stockpile and processed an average grade of 0.82 grams per tonne at a gold recovery of 87%. Mill availability for the quarter averaged 88%.

* Rainy River is currently on-track to meet the low end of the production guidance range.

* There are currently no active cases of COVID-19 at the Rainy River Mine. Rainy River has implemented measures to mitigate and limit the spread of COVID-19 to protect the well-being of its employees, contractors, their families, local communities, and other stakeholders. For more information see: http://newgold.com/covid-19/.

New Afton Mine

Operational Highlights

New Afton Mine Q2 2021Q2 2020H1 2021H1 2020

Gold eq. production (ounces)150,542 48,446 90,055 100,775

Gold eq. sold (ounces)1 46,917 43,517 85,157 93,915

Gold production (ounces) 14,088 15,494 26,082 31,903

Gold sold (ounces) 13,122 13,789 24,866 29,780

Copper production (Mlbs) 18.2 16.9 32.0 35.4

Copper sold (Mlbs) 16.9 15.3 30.2 33.0

Operating Key Performance Indicators

New Afton Mine Q2 2020Q3 2020Q4 2020Q1 2021Q2 2021

Tonnes mined per day (ore and waste)15,358 17,249 17,259 11,395 15,104

Tonnes milled per calendar day 14,240 15,483 15,358 13,564 13,795

Gold grade milled (g/t) 0.46 0.44 0.46 0.39 0.43

Gold recovery (%) 81 80 79 79 80

Gold production (ounces) 15,494 15,955 16,362 11,994 14,088

Copper grade milled (%) 0.72 0.71 0.73 0.64 0.79

Copper recovery (%) 83 82 81 80 83

Copper production (Mlbs) 16.9 18.2 18.5 13.8 18.2

Mill availability (%) 92 98 99 96 98

Gold eq. production (ounces)1 48,446 51,315 52,326 39,512 50,542



* Second quarter gold eq.1 production was 50,542 ounces (14,088 ounces of gold, and 18.2 million pounds of copper). The increase compared to the prior-year period is due to higher copper production as a result of higher copper grades.

* The underground mine averaged 15,104 tonnes per day for the quarter, higher than the previous quarter, as the mine initiated a safe and secure ramp up of Lift 1, including the West Cave, East Cave and Pillar, to return to pre-incident mining rates.

* The mill averaged 13,795 tonnes per day, slightly below prior-year period, but in-line with plan to optimize metal recoveries while processing higher grade supergene ore. The mill processed gold grades of 0.43 grams per tonne and higher than expected copper grades of 0.79%, with gold and copper recoveries of 80% and 83%, respectively.

* B3 production commenced in June following receipt of the Mines Act Permit on May 25, 2021 and will advance through the second half of the year. With the permit being received later than anticipated, ore extraction transitioning from Lift 1 to B3, and with current metal prices significantly above reserve pricing, New Afton is looking for ways to optimize its current mine plan.

* C-Zone development advanced by approximately 919 metres and the project remains on track.

* There are currently no active cases of COVID-19 at the New Afton Mine. New Afton has implemented measures to mitigate and limit the spread of COVID-19 to protect the well-being of its employees, contractors, their families, local communities, and other stakeholders. For more information see: http://newgold.com/covid-19/.

Second Quarter 2021 Conference Call and Webcast

* The Company will release its second quarter 2021 financial results before market on Wednesday, August 11, 2021. A conference call and webcast will follow at 8:30 am Eastern Time.

* Participants may listen to the webcast by registering on our website at www.newgold.com or via the following link https://produceredition.webcasts.com/starthere.jsp?ei=1479944&tp_key=e9367fef15

* Participants may also listen to the conference call by calling North American toll free 1-888-664-6383, or 1-416-764-8650 outside of the U.S. and Canada, passcode 26663480.

* A recorded playback of the conference call will be available until September 11, 2021, by calling North American toll free 1-888-390-0541, or 1-416-764-8677 outside of the U.S. and Canada, passcode 663480. An archived webcast will also be available at www.newgold.com.