New Gold (TSX, NYSE: NGD) is fast-tracking work on the emerging K-Zone at its New Afton gold-copper mine in British Columbia, CEO Patrick Godinand says.
An initial integrated resource and a feasibility study are targeted for release next year to support an investment decision in 2027, Godin said last month during the Mining Forum Americas. The zone, discovered late last year, would push the mine’s life “beyond 2040,” the CEO said.
“The best investment to create value for our shareholders is to explore,” Godin told The Northern Miner’s Western Editor, Henry Lazenby. The executive called K-Zone “an excellent investment” that can piggyback on New Afton’s existing crushing, milling and tailings infrastructure.
As production in the C-Zone ramps, management expects New Afton to lift copper output above 100 million lb. a year with gold around 100,000 oz., helping to reduce the cost profile and funding growth.
At the company’s other producing asset, Rainy River in Ontario, New Gold has completed drilling on the northwest trend beside the Phase 5 development to add a year of open-pit feed and keep the mill processing about 24,000 tonnes per day to 2030. Underground output continues to grow.
Together with the K-Zone investment, the program outlines a self-funded path to higher copper exposure, longer mine lives and stronger free cash flow without major new tailings builds, Godin said – key in a high-price metals market.
Watch the full chat below:
Be the first to comment on "Video: New Gold eyes K-Zone study to extend New Afton"