BRITISH COLUMBIA — Vancouver-based New Gold has decided not to fast track development of its New Afton project due to “the volatility and uncertainty of today’s capital markets” and the company’s current cash position. The project is located west of Kamloops.
The company is going to shut down surface construction but continue underground development at a reduced rate until the bottom of the orebody is reached. The fast-track schedule planned production to begin in late 2009 and ramp up to full production in Q2 2011. Under the revised plan, surface construction will not resume until the end of 2010 with full production to be reached in the second half of 2012.
New Afton said that capital requirements for the New Afton project will be $83 million in 2009, rather than $320 million that would have been needed to fast-track the project.
New Afton has also announced a $256.6-million write down of its investment in the Amapari heap leach gold mine in Brazil to $10.6 million. The company’s website is at www.NewGold.com.