FORT FRANCES, ON — New Gold Inc. has decided to examine alternative mining methods before proceeding with underground mining at its Rainy River gold mine, 65 kilometres northwest of Fort Frances.
The announcement was made Tuesday as the company reported strong fourth quarter operating results from the mine.
New Gold said production in the last quarter totalled over 72,000 ounces, a 39 per cent increase from the previous quarter.
The company the results shows that the mine's "stronger operational performance" achieved in September continued into the fourth quarter, resulting in the last four months of the year contributing 45 per cent of total production for the year.
"This marks a pivotal turning point for Rainy River as we reposition the asset for long-term success," stated CEO Renaud Adams.
New Gold currently operates an open pit at the Rainy River mine, and it had begun work to expand ore extraction underground.
However, the company said it has decided to defer the 2019 underground development plan to 2020.
"Consistent with the renewed vision of repositioning the Rainy River Mine for long-term success...during 2019 the company will launch a comprehensive review that includes alternative underground mining scenarios with the overall objective of reducing capital," the statement said.
New Gold said the review is also aimed at improving the return on investment for the underground portion.
The Rainy River mine started commercial production in November 2017.
