New Gold is reporting almost 53 thousand ounces of gold coming out of its Rainy River mine in the last three months.
Production was partly from an area described as the East Lobe
President Renaud Adams says, unfortunately, grades there were not as high as expected.
“If the realized gold grade continues to thrive below the expected gold grade, it will negatively impact the amount of ounces we expect to produce in the second half of 2021,” says Adams. “The extent of the impact is not yet known, but there is a risk that Rainy River may not achieve the low end of its fiscal equivalent production guidance range of 2750,00 to 295,000 ounces.”
Renaud says 50 per cent of production for the last half of the year will be in the East lobe.
Meantime, the development of underground operations continues.
Adams says they have advanced a decline at its so-called Intrepid Zone another 600 meters.
President Renaud Adams says that reached a second level of ore.
“The ramp will continue to advance in the third quarter with the objective eventually to have a full first span totally developed prior to initiating production in the latter part of 2022.”
New Gold also continues work on an economic study exploring how a stand-alone underground operation will extend the life of the mine site.
