BRITISH COLUMBIA In February 2006, NEW GOLD INC. of Vancouver raised over $75 million for exploration and a feasibility study on its New Afton project near Kamloops. The company seems to be getting results from the investment. It announced that it has intersected a new area of mineralization 1 km beneath the surface.
The new area of copper-gold mineralization was cored and assayed, returning 1.70% Cu and 1.47 g/t Au (2.70% CuEq) over a length of 112 metres. The new zone has been intersected over a vertical distance of more than 200 metres and as much as 300 metres below the existing resource. The mineralization remains open in all directions and drilling continues, says New Gold. A summary of results can be read at www.NewGoldInc.com in the press release dated May 25.
A study on the feasibility of reopening the former Afton mine is being prepared. This time it would be an underground rather than an open pit development.