New Gold

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New Gold Inc.
Traded asTSXNGD
Key people
Ian Pearce, Chair
Hannes Portmann, President and CEO
Brian W. Penny, CFO
Cory Atiyeh, VP of Operations
ProductsGold Silver Copper
Revenue$695.939 mil (2011)Increase31.2%[1]
$179.028 mil (2011)Increase277%[1]
Total assets$3,221.402 mil Increase32.6%
Total equity$2,282,369 mil Increase50%
Number of employees
1720 (Dec 2012)
DivisionsMinera San Xavier
Peak Gold Mines
Western Mesquite Mines
New Afton

New Gold Inc. is a multinational mining company with gold, silver and copper containing assets. It engages in both exploratory and production activity in North America (produces in the US, Mexico, development and exploration in Canada), South America (Chile, Brazil) and Australia. Regionally based subsidiaries manage business locally (Minera San Xavier in Mexico, Peak Gold Mines in Australia).

Many of its mines are polymetallic meaning they hold significant resources in more than one base metal; New Afton contains tens of millions of pounds and ounces of copper and gold respectively while Cerro San Pedro produces a significant amount of gold and silver. Its newest mine to enter operation, New Afton located near Kamloops, British Columbia, began producing gold and copper in 2012. New Gold has made deals with local First Nations groups (Tk’emlups and Skeetchestn) centered on resource sharing and job recruitment.[2] The New Afton mine raises total production to between 405,000 and 445,000 ounces. The company also produces about 2 million ounces of silver and 12.7 billion pounds of copper.[3]


The company with the New Gold Inc. name goes back to 1980 however the bulk of the company as it exists today is the result of a $1.6 billion 2008 merger between Metallica Resources, Peak Gold Ltd. and New Gold Inc. Peak Gold's CEO Bob Gallagher was the first CEO of the new company.[4] It acquired Western Goldfields in March 2009 for Cdn $285 million.[5][6][7]


2011- New Gold output was 387,155 ounces at an average cash cost of $448 an ounce. That's 4,300 ounces more than the previous year. Silver production was 1.983 million ounces and copper 12.7 billion pounds, down 9.0% and 17.0% respectively.[3] New Gold also sells gold, 391,890 ounces up 6.2%.

2010 - New Gold produced 382,911 ounces of gold 26.9% more than the previous year and sold 369,077 ounces at a total cash cost 8% lower (down to $428/oz). Mesquite produced 44% of the gold (169,023 ounces), Cerro San Pedro 31.0% (118,708 ounces) with the rest coming from Peak Mines (95,180 ounces); For 2011 nearly all of the new production is expected to come from Cerro San Pedro.[8] Total production could surpass 400,000 ounces by 2012.[6]

2016 - New Gold produced 381,663 ounces of gold and 102 million pounds of copper. Year-end cash and cash equivalents of $186 million. Development of Rainy River remained on track to achieve initial production by September 2017. [9]

In Q1 2017 New Gold produced 89,327 ounces of gold and 23.8 million pounds of copper. [10]

Operating mines[edit]

Mesquite Mine (gold) is located in Imperial County, California near the Algodones Dunes, it was acquired when New Gold merged with Western Goldfields Inc. The mine contributes about 45% of total production.

Cerro San Pedro (gold and silver) mine is located in the Mexican state of San Luis Potosí uses the process of heap leaching to recover minerals. It holds 52 million ounces of silver and 1.4 million ounces of gold; Gold production was 9% higher in 2009.[11] The property is made up of Cretaceous limestone and Tertiary diorite porphyry. This operation has faced heated opposition from local residents, and was deemed illegal in 2005 by Mexican courts.[12] The mine has been operating without a valid permit ever since. Until 2016 when the mine was partially closed.[13]

Peak Gold Mines (gold, copper, lead) is in the Cobar Gold Field of NSW Australia (production 15+ million oz cu, 90,000+ oz gold). Began operations in 1992.

New Afton (gold, silver, copper) located 10 km. west of Kamloops, British Columbia, Canada, the mine is located on the site of the previous Afton Mine, which had been inactive for a number of years. The New Afton copper-gold mine is located approximately 350 kilometres northeast of Vancouver in the south-central interior of British Columbia. The property is only 10 kilometres from the regional hub of Kamloops and is easily accessible by paved road. The project includes an open pit, underground workings, historic support facilities, a new concentrator and recently constructed tailings facility. The New Afton deposit extends to the southwest from immediately beneath the Afton Mine open pit. New Afton began production in June 2012 and began commercial production ahead of schedule in July 2012. The underground operation is expected to produce, on average, 85,000 ounces of gold and 75 million pounds of copper per year over a 12-year mine life.

In February 2017 New Gold announced the sale of its El Morro gold stream to Goldcorp for $65 million to further fund construction of the Rainy River gold project. [14]


Currently, New Gold Inc. has two development / exploration projects:

Blackwater, an exploration / development project located in south-central British Columbia, Canada. Since acquiring the project in June 2011, New Gold Inc. has been actively drilling to extend the limits of the Blackwater mineral resource and expand its mineral rights through the acquisitions of Silver Quest Resources Ltd. and Geo Minerals Inc., which includes the addition of the Capoose gold-silver deposit to the Blackwater mineral resource inventory, and is advancing the project toward completion of a feasibility study in 2014.

Rainy River, a recently acquired advanced exploration gold project, located in northwestern Ontario. In May 2013, New Gold Inc. and Rainy River Resources Ltd. jointly announced that in a friendly take-over bid, New Gold Inc. would acquire all outstanding common shares of Rainy River Resources Ltd., and became the registered owner of 100% of the outstanding shares of Rainy River. Currently completing the Environmental Assessment phase of development, the project could eventually add over 8 million ounces of gold to the New Gold reserves.


  1. ^ a b "New Gold 2011 Report" (PDF). 2012-03-01.
  2. ^ "Untapped resource; mining First Nations to fill labour shortage". Kamloops The Daily News. 2010-06-15.
  3. ^ a b "New Gold announces record gold production in 2011". 2012-02-02.
  4. ^ Wright, Lisa (2008-04-01). "New mid-tier gold producer in the making". The Star. Toronto.
  5. ^ "#4 fastest growing B.C. company, New Gold". 2010-10-27.
  6. ^ a b "New Gold to acquire Western Goldfields". The Star. Toronto. 2009-03-04.
  7. ^ "New Gold 2010 Third Quarter Results" (PDF). 2010-11-04.
  8. ^ "New Gold 2010 Annual Review". May 4, 2011. Archived from the original on July 5, 2011.
  9. ^ "New Gold Achieves 2016 Production Guidance at Lower Costs, Provides Rainy River Update, 2017 Guidance and Announces Board and Management Changes". Retrieved 2017-01-30.
  10. ^ "New Gold Announces 2017 Q1 Results; Provides Rainy River Project Update". Retrieved 2017-04-26.
  11. ^ "Cerro San Pedro Mine, San Luis Petosi". Retrieved 2010-11-13.
  12. ^ "Mexico Rules Canadian Mine Illegal - The McGill Daily". Archived from the original on 2010-11-27. Retrieved 2010-12-05.
  13. ^ "Canadian Mining Company's Operation Shut down in Mexico - Portal for North America". Archived from the original on 2010-12-06. Retrieved 2010-12-05.
  14. ^ "New Gold Announces Sale of El Morro Gold Stream to Goldcorp for $65 Million". Retrieved 2017-02-08.