BRITISH COLUMBIA – Vancouver-based NEW GOLD has released a new resource estimate and mining study of its New Afton copper-gold project 10 km west of Kamloops, B.C. The midrange figure for measured and indicated resources is 50.5 million tonnes averaging 1.20% Cu, 0.988 g/t Au and 2.87 g/t Ag or 1.33 billion lb of copper and 1.45 million oz of Au contained in the deposit. These numbers were calculated using US$1.20/lb for the price of copper, US$450/oz for gold, and US$5.25/oz for silver. Approximately 70% of the mineralization is classified as measured.
New Gold studied seven different mining methods. Early on, it was apparent that caving would support the highest production rate at the lowest cost. Ultimately, it was concluded that the feasibility study should be completed using the assumption that the majority of the mineralization would be mined using block caving, and that the areas of mineralization with the smaller dimensions would be extracted using sublevel caving.
A discussion of the increased geological understanding of the New Afton deposit is posted at www.NewGoldInc.com.