Blackwater Gold Project

Blackwater is one of New Gold’s two exciting future growth projects and is located approximately 160 km southwest of the City of Prince George and 110 km southwest of the District of Vanderhoof. The proposed Blackwater project footprint consists of a mine site, a mine access road, and a transmission line.


About This Project

New Gold is an intermediate gold mining company, and currently has a portfolio of four producing mines and three significant development projects. New Gold became 100% owner of the Blackwater project by acquiring Richfield and Silver Quest in June and December 2011 respectively.

The proposed project is located 160 kilometres southwest of Prince George and 110 kilometres southwest of Vanderhoof in an area that has seen active exploration since 1973.

The main physical activities associated with the proposed project include the construction, operation, and closure of an open pit mine and ore processing facilities with a nominal milling rate of 60,000 tonnes per day (tpd). The project is expected to have a nominal ore production capacity of 22 million tonnes per year over its 17-year mine life.

The mine is well connected by an access road from Vanderhoof and a railway line adjacent to Vanderhoof. In addition, Vanderhoof, Quesnel and Prince George are located less than 500km from the mine and have bases that can provide helicopter access to the project area.

The proposed project would peak during a two-year construction period with up to 1,500 employees. Once the project reaches the production stage, New Gold expects to have approximately 500 permanent employees. The project is estimated to be mostly self financed with total estimated development capital cost of $1.86 million inclusive of a $190 million contingency.

A Preliminary Economic Assessment was done on the property in September 2012. During the fourth quarter of 2013, New Gold completed a feasibility study for the Blackwater project, which showcased positive results. Provincial and federal approvals are expected during 2014.

New Gold has consulted with various Aboriginal groups and will continue to consult with First Nations located in the vicinity of the proposed project area including the Carrier Chilcotin Tribal Council, the Carrier Sekani Tribal Council, the Tsilhqot'in National Government and the Métis Nation of B.C. New Gold has two Exploration Cooperation Agreements with First Nations and has also partnered with the B.C. Aboriginal Mine Training Association, Northwest College and the College of New Caledonia to support local hiring.

The deposit contains Measured and Indicated mineral resources suitable for direct processing and stockpile materials of 9.5 million ounces of gold and 70.13 million ounces of silver using conventional truck and shovel open pit methods during its 17-year mine life.

New Gold anticipates that Blackwater's total cash costs of $555 per ounce and all-in sustaining costs of $685 per ounce.

In December 2013, New Gold announced that the Blackwater project is not their primary focus at the moment. The company will turn their priorities to their Rainy River project, located in Ontario. New Gold anticipates having the Blackwater project to a construction ready status by late 2014 and will then make a decision to move ahead based on project economics and market conditions.

New Gold Incorporated is traded on the Toronto Venture Stock Exchange under the symbol NGD.

More Information Online

For more information on this project, visit:
http://www.newgold.com/properties/projects/blackwater/default.aspx

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