New Gold Mining (TSE: NGD) (NYSEAMERICAN: NGD) completed all of its production milestones at its New Afton copper-gold mine in British Columbia and the Rainy River gold mine in Ontario.
The company said on Tuesday that its massive C-zone block cave at New Afton is in commercial production ahead of schedule.
The cave footprint achieved the targeted hydraulic radius for self-cave propagation, and the team completed installation of the gyratory crusher and conveyor system ahead of plan.
Additionally, construction of the C-Zone cave footprint met its goal of 18 draw bells for hydraulic radius. These milestones are anticipated to immediately reduce unit operating costs and help drive a ramp-up to processing rates above 14,500 tonnes per day by 2026.
Furthermore, when the company announced C-Zone development four years ago, it planned to invest nearly half a billion dollars to prepare the cave for production. The province approved the development in 2022, allowing the company to extend the mine’s life to 2030.
At Rainy River, crews mined the first development ore from underground main ahead of schedule.
Also, underground main holds the majority of Rainy River’s underground mineral reserves and will serve as a key source of higher-grade production over the coming years, supplementing mill feed from both the open pit and the Intrepid underground zone.
Mining of the first ore followed the completion of the main fresh air raise and in-pit portal in the third quarter. Further, the underground main project remains on track to begin stoping in the first half of 2025 and to ramp up to an underground production rate of approximately 5,500 tonnes per day by 2027.
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C-Zone remains on track for its production-ramp up through 2025
The materials handling system is now fully operational with a design capacity of about 24,000 tonnes per day. So far, New Afton has constructed 18 of the planned 91 draw bells, reaching the cave footprint necessary for self-cave propagation, which marks a critical transition in the cave ramp-up schedule.
This progress allows New Afton to safely increase the draw rate from C-Zone while monitoring cave growth via an extensive instrumentation system. C-Zone remains on track to meet its planned production ramp-up through 2024 and 2025, while the B3 cave maintains steady production at approximately 9,000 tonnes per day.
“Today’s announcement highlights delivery of critical milestones at both of our growth projects, ahead of schedule.” said Patrick Godin, president and CEO.
“At New Afton, safely achieving commercial production at C-Zone and commissioning of the crusher and conveyor system will have a meaningful and immediate impact on costs, which will translate to ongoing and annual sustained free cash flow generation.”
At Rainy River, the first development ore rounds in Underground Main were advanced in late September, marking a significant milestone as the company establishes new mining zones and completes vital infrastructure for the upcoming production ramp-up to roughly 5,500 tonnes per day by 2027.
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Canada ranks as one of world’s top gold producers
Gold mining in Canada is a key sector, attracting miners due to the country’s abundant gold reserves, favourable geology, and stable regulatory environment.
Canada ranks as one of the world’s top gold producers, with extensive deposits across provinces like Ontario, Quebec, and British Columbia, each offering a range of mining-friendly policies and infrastructure.
The draw is Canada’s predictable legal framework, skilled workforce, and established mining industry make it an ideal location for both domestic and international miners. Additionally, government incentives and support for responsible mining practices provide an added layer of appeal for companies focused on sustainable operations.
Several prominent gold mining companies currently operate across Canada.
Calibre Mining Corp. (TSE: CXB) (OTCMKTS: CXBMF), for instance, is advancing its Valentine Mine in Newfoundland, a significant project that promises to add to Canada’s gold output while benefiting from the province’s mining-friendly environment. Furthermore, other players include Barrick Gold Corp (TSX: ABX) (NYSE: GOLD), which has established operations throughout Canada, and Agnico Eagle Mines Ltd (TSE: AGM) (NYSE: AEM) which focuses on mines in Quebec and Nunavut.
These companies not only contribute to Canada’s strong mining economy but also prioritize sustainable practices, making Canada a leader in responsible gold production.
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