April 3, 2020 – New Gold Inc. (“New Gold” or the “Company”)
(TSX and NYSE American: NGD) reports that the Rainy River mine
has begun a systematic ramp-up of operations following the
completion of a voluntary 14-day suspension to adhere to provincial
and federal COVID-19 guidelines related to out-of-country travel
that impacted a significant portion of the local workforce. As the
health and safety of our employees and communities remains our
number one priority, operations will steadily ramp-up over the
coming weeks with the overarching priority of ensuring we provide
the safest possible environment for our employees.
Rainy River Mine management will continue to work with
surrounding Indigenous and local communities to implement and
coordinate actions that will reduce the risk of the spread of
COVID-19. Enhanced precautionary measures relating to COVID-19 have
been implemented throughout the operation. For further information
see www.newgold.com/covid-19/Rainy-River-Mine/.
The Company will initially utilize the local workforce during a
progressive ramp-up of operations. This initial phase will be
followed by the gradual reintroduction of the rotational workforce.
To ensure the safety of our workforce and our local communities,
extra measures have been implemented in accordance with the
recommendations of the Ontario Department of Public Health and will
be overseen by our onsite Nurse Practitioner. Throughout this
period, we remain in constant contact with the Northwestern Health
Unit, a division of the Ontario Department of Public Health, to
ensure our ongoing compliance with all provincial regulations and
measures related to COVID-19.
Additional details of the ramp-up and an update on our mid-term
operational plans will be provided along with our first quarter
operational update expected to be released in mid-April.
During the 14-day suspension a minimum crew was retained to
monitor and maintain essential activities, ensure there was no
impact on the environment and fully implement sanitization
practices throughout the mine site, camp, and mobile and fixed
equipment to ensure a safe working environment for our employees.
During this period, the team also advanced preventative maintenance
work at the mill facility, stockpiled ore for the ramp-up period,
supplied NAG material for the tailings management area and
monitored water levels.
New Gold’s Response to COVID-19
New Gold has taken numerous steps to contain and reduce the
spread of COVID-19. We are implementing shared action plans and
preventative measures, while seeking and considering input from our
employees, contractors, and local communities to deliver responsive
actions consistent with the broader efforts of minimizing the
impact of the COVID-19 virus. For further details of New Gold’s
response to COVID-19, please refer to
https://www.newgold.com/covid-19/.
The health and safety of our workforce and our communities
remains our number one concern and we will support all initiatives
that align with that objective.
About New Gold Inc.
New Gold is a Canadian-focused intermediate gold mining company
with a portfolio of two core producing assets in Canada, the Rainy
River and New Afton Mines as well as the 100% owned Blackwater
development project. The Company also operates the Cerro San Pedro
Mine in Mexico (in reclamation). New Gold’s vision is to build a
leading diversified intermediate gold company based in Canada that
is committed to environment and social responsibility. For further
information on the Company, visit www.newgold.com.
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this news release, including
any information relating to New Gold’s future financial or
operating performance are “forward looking”. All statements in this
news release, other than statements of historical fact, which
address events, results, outcomes or developments that New Gold
expects to occur are “forward-looking statements”. Forward-looking
statements are statements that are not historical facts and are
generally, but not always, identified by the use of forward-looking
terminology such as “plans”, “expects”, “is expected”, “budget”,
“scheduled”, “targeted”, “estimates”, “forecasts”, “intends”,
“anticipates”, “projects”, “potential”, “believes” or variations of
such words and phrases or statements that certain actions, events
or results “may”, “could”, “would”, “should”, “might” or “will be
taken”, “occur” or “be achieved” or the negative connotation of
such terms. Forward-looking statements in this news release
include, among others, statements with respect to: the Company’s
anticipated course of action at the Rainy River mine and the
systematic ramp-up of operations; the Company’s ability to reduce
the risk of the spread of COVID-19; the timing of the Company’s
expected release of additional details of the ramp-up, an update on
our mid-term operational plans and our first quarter operational
update.
All forward-looking statements in this news release are based on
the opinions and estimates of management as of the date such
statements are made and are subject to important risk factors and
uncertainties, many of which are beyond New Gold’s ability to
control or predict. Certain material assumptions regarding such
forward-looking statements are discussed in this news release, New
Gold’s latest annual management’s discussion and analysis
(“MD&A”), its most recent annual information form and technical
reports on the Rainy River Mine and New Afton Mine filed at
www.sedar.com and on EDGAR at www.sec.gov. In addition to, and
subject to, such assumptions discussed in more detail elsewhere,
the forward-looking statements in this news release are also
subject to the following assumptions: (1) there being no
significant disruptions affecting New Gold’s operations other than
as set out herein; (2) political and legal developments in
jurisdictions where New Gold operates, or may in the future
operate, being consistent with New Gold’s current expectations; (3)
the accuracy of New Gold’s current mineral reserve and mineral
resource estimates; (4) the exchange rate between the Canadian
dollar and U.S. dollar, and to a lesser extent, the Mexican Peso,
being approximately consistent with current levels; (5) prices for
diesel, natural gas, fuel oil, electricity and other key supplies
being approximately consistent with current levels; (6) equipment,
labour and materials costs increasing on a basis consistent with
New Gold’s current expectations; (7) arrangements with First
Nations and other Aboriginal groups in respect of the New Afton
Mine, Rainy River Mine and Blackwater project being consistent with
New Gold’s current expectations, particularly in the context of the
outbreak of COVID-19; (8) all required permits, licenses and
authorizations being obtained from the relevant governments and
other relevant stakeholders within the expected timelines and the
absence of material negative comments during the applicable
regulatory processes; (9) there being no new cases of COVID-19 in
the Company’s workforce at either the Rainy River or New Afton Mine
and the assumption that no additional members of the workforce are
expected to be required to self-isolate due to cross-border travel
to the United States or any other country; (10) the responses of
the relevant governments to the COVID-19 outbreak being sufficient
to contain the impact of the COVID-19 outbreak; (11) there being no
material disruption to the Company’s supply chains and workforce
that would interfere with the Company’s anticipated course of
action at the Rainy River mine and the systematic ramp-up of
operations; and (12) the Company being able to release of
additional details of the ramp-up, an update on our mid-term
operational plans and our first quarter operational update on the
timing described herein.
Forward-looking statements are necessarily based on estimates
and assumptions that are inherently subject to known and unknown
risks, uncertainties and other factors that may cause actual
results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking statements. Such factors include, without
limitation: significant capital requirements and the availability
and management of capital resources; additional funding
requirements; price volatility in the spot and forward markets for
metals and other commodities; fluctuations in the international
currency markets and in the rates of exchange of the currencies of
Canada, the United States and, to a lesser extent, Mexico;
discrepancies between actual and estimated production, between
actual and estimated mineral reserves and mineral resources and
between actual and estimated metallurgical recoveries; risks
related to early production at the Rainy River Mine, including
failure of equipment, machinery, the process circuit or other
processes to perform as designed or intended; fluctuation in
treatment and refining charges; changes in national and local
government legislation in Canada, the United States and, to a
lesser extent, Mexico or any other country in which New Gold
currently or may in the future carry on business; taxation;
controls, regulations and political or economic developments in the
countries in which New Gold does or may carry on business; the
speculative nature of mineral exploration and development,
including the risks of obtaining and maintaining the validity and
enforceability of the necessary licenses and permits and complying
with the permitting requirements of each jurisdiction in which New
Gold operates, the lack of certainty with respect to foreign legal
systems, which may not be immune from the influence of political
pressure, corruption or other factors that are inconsistent with
the rule of law; the uncertainties inherent to current and future
legal challenges New Gold is or may become a party to; diminishing
quantities or grades of mineral reserves and mineral resources;
competition; loss of key employees; rising costs of labour,
supplies, fuel and equipment; actual results of current exploration
or reclamation activities; uncertainties inherent to mining
economic studies; changes in project parameters as plans continue
to be refined; accidents; labour disputes; defective title to
mineral claims or property or contests over claims to mineral
properties; unexpected delays and costs inherent to consulting and
accommodating rights of Indigenous groups; risks, uncertainties and
unanticipated delays associated with obtaining and maintaining
necessary licenses, permits and authorizations and complying with
permitting requirements; there being cases of COVID-19 in the
Company’s workforce at either the Rainy River or New Afton Mine, or
both; the Company’s workforce at either the Rainy River Mine or the
New Afton Mine, or both, being required to self-isolate due to
cross-border travel to the United States or any other country; the
responses of the relevant governments to the COVID-19 outbreak not
being sufficient to contain the impact of the COVID-19 outbreak;
disruptions to the Company’s supply chain and workforce due to the
COVID-19 outbreak; a material economic recession or downturn as a
result of the COVID-19 outbreak; the Company not being able to
release additional details of the ramp-up, an update on our
mid-term operational plans and our first quarter operational update
on the timing described herein or at all; difficulties in
demobilization or restart of operations due to various factors,
including lack of availability of manpower or equipment. In
addition, there are risks and hazards associated with the business
of mineral exploration, development and mining, including
environmental events and hazards, industrial accidents, unusual or
unexpected formations, pressures, cave-ins, flooding and gold
bullion losses and risks associated with the start of production of
a mine, such as Rainy River, (and the risk of inadequate insurance
or inability to obtain insurance to cover these risks) as well as
“Risk Factors” included in New Gold’s Annual Information Form,
MD&A and other disclosure documents filed on and available at
www.sedar.com and on EDGAR at www.sec.gov. Forward-looking
statements are not guarantees of future performance, and actual
results and future events could materially differ from those
anticipated in such statements. All of the forward-looking
statements contained in this news release are qualified by these
cautionary statements. New Gold expressly disclaims any intention
or obligation to update or revise any forward-looking statements
whether as a result of new information, events or otherwise, except
in accordance with applicable securities laws.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200403005192/en/
Anne Day Vice President, Investor Relations Direct: +1
(416) 324-6003 Email: anne.day@newgold.com
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