The developer of one of the newest gold mines in the world says the start of production will be delayed by about three months.
Toronto-based New Gold Inc. announced yesterday that the first production from its Rainy River mine northwest of Fort Frances is now scheduled to occur in November.
The mine, which will initially be an open-pit operation, had been expected to start producing this summer.
New Gold also announced that the final cost of building the mine has gone up by $195 million from the previous estimate.
"The key driver of this increase," the company states in a news release, "is the slower than planned ramp-up in mining rates, resulting in a three-month delay in commercial production relative to the company's original target."
The statement said that although the northwestern Ontario project has presented challenges, "New Gold continues to look forward to the expected growth in the company's production and cash flow once Rainy River transitions into operation."
It cited the project's multiple assets including "its great jurisdiction, significant annual production potential, long estimated reserve life and continued exploration potential."
