New Gold Provides New Afton C-zone Exploration Update

VANCOUVER, Sept. 11, 2014 /CNW/ - New Gold Inc. ("New Gold") (TSX:NGD) and (NYSE MKT:NGD) today provides an update on the exploration results received from the New Afton C-zone since the company's previously announced June 2014 mineral resource estimate. The C-zone is a continuation of the New Afton copper-gold deposit that extends along strike and below the B-zone block cave reserve that is currently being mined. An update of the C-zone mineral resource estimate was provided on July 7, 2014 which included exploration results through the beginning of June from 88 holes totaling 56,321 metres. Since the early-June data cut-off date for the mineral resource estimate, assays have been received for an additional 20 holes totaling 13,449 metres from drilling through mid-August 2014. The additional holes have focused both on upgrading the C-zone resource classification and expanding it as it extends laterally to the west.


New Afton C-zone Highlights post June 2014 Mineral Resource Update














Drill Hole


From
(metres)


To

(metres)


Interval

(metres)


Estimated

true width

(metres)


Gold

(g/t)


Copper

(%)

EA-115


706


786


80


55


1.07


1.40

  includes


728


752


24




1.82


2.51

EA-116


494


568


74


52


0.95


0.94

  includes


494


534


40




1.49


1.50

EA-118


534


660


126


72


1.47


1.80

  includes


534


612


78




1.96


2.36

EA-121


430


640


210


121


1.20


0.89

  includes


448


524


76




1.92


1.01

EA-122


384


478


94


91


1.65


1.67

  includes


394


444


50




2.39


2.30

EA-123


502


600


98


87


1.49


1.97

  includes


532


574


42




2.04


2.56

EA-125


392


502


110


78


1.35


1.73

  includes


392


428


36




2.26


3.34

EA-128


382


476


94


86


1.78


1.96

  includes


384


444


60




2.49


2.69

EA-129A


658


724


66


54


1.33


1.67

  includes


660


686


26




2.07


2.72

EA-132


492


582


90


80


1.30


1.89

  includes


492


528


36




2.09


2.78














 

"We are very pleased with the continued progress of our C-zone exploration program," stated Mark Petersen, Vice President Exploration. "These latest drill results continue to demonstrate good continuity of mineralization and strong gold and copper grades throughout the C-zone."

Four underground diamond drills continue to actively explore the New Afton C-zone, with two drills dedicated to upgrading the resource and two drills focused on expanding the resource to the west. The previously announced June 2014 mineral resource estimate will be updated at the end of 2014 to include the results of the 20 holes announced today as well as the assay results from drilling through early November 2014. In total, the 2014 year-end mineral resource estimate is expected to include data from 35 to 40 additional holes totaling approximately 25,000 metres when compared to the June 2014 mineral resource estimate shown below.  

New Afton C-zone Mineral Resource Estimate


June 2014 Mineral Resource


Tonnes
(000s)

Gold
(g/t)

Silver
(g/t)

Copper
(%)

Gold
(Koz)

Silver
(Koz)

Copper
(Mlbs)

Measured

931

0.94

1.7

1.06

28

51

22

Indicated

33,941

0.76

1.9

0.86

832

2,084

646

Total Measured & Indicated

34,872

0.77

1.9

0.87

860

2,135

668

Inferred

7,979

0.50

1.5

0.56

128

387

98

 

New Gold's project team is also furthering its engineering work on the C-zone. The results of the additional 20 holes announced today have been provided to the project team to support the continued preliminary design work. New Gold plans to provide both an updated mineral resource estimate and its preliminary engineering scoping analysis for the C-zone in early 2015.

Quality Assurance

New Gold maintains a Quality Assurance / Quality Control ("QA/QC") program at the New Afton project using industry best practices and is consistent with the QA/QC protocols in use at all of the company's exploration and development projects. Key elements of New Gold's QA/QC program include chain of custody of samples, regular insertion of certified reference standards and blanks, and duplicate check assays. Drill core is halved and shipped in sealed bags to Actlabs Laboratories in Kamloops, British Columbia. Check analyses are completed by SGS Minerals Services, Vancouver, British Columbia. Additional information regarding the company's quality assurance processes is set out in the New Afton NI 43-101 Technical Report available at www.sedar.com.

Notes to Mineral Resource Statements

1) Mineral resources are classified as Measured, Indicated and Inferred resources and are effective as of June 27, 2014 and reported based on the technical and economic parameters consistent with the methods most suitable for their potential commercial exploitation. Measured and Indicated mineral resources do not have demonstrated economic viability. Inferred mineral resources have a greater amount of uncertainty as to their existence and potential economic and legal feasibility, do not have demonstrated economic viability, and are exclusive of mineral reserves.

2) Mineral resources for New Afton are based on the following estimation parameters and are reported at a lower cut-off of 0.40% copper equivalent:

New Afton

Gold

Silver

Copper

Metal price

US$1,400 per ounce

US$24.00 per ounce

US$3.25 per pound

Metal recovery

87.7%

73.5%

86.4%

Net payable

97%

90%

96%

Refining costs

US$6.00 per ounce

US$0.50 per ounce

US$0.075 per pound

 

3) Additional details regarding mineral resource estimation, classification, reporting parameters, key assumptions and associated risks are provided in the company's July 7, 2014 news release, New Afton NI 43-101 Technical Report and its latest Annual Information Form which are available at www.sedar.com.

About New Gold Inc.

New Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and three significant development projects. The New Afton Mine in Canada, the Mesquite Mine in the United States, the Peak Mines in Australia and the Cerro San Pedro Mine in Mexico, provide the company with its current production base. In addition, New Gold owns 100% of the Blackwater and Rainy River projects, both in Canada, as well as 30% of the El Morro project located in Chile. New Gold's objective is to be the leading intermediate gold producer, focused on the environment and social responsibility. For further information on the company, please visit www.newgold.com.

Cautionary Note Regarding Forward-Looking Statements

Certain information contained in this news release, including any information relating to New Gold's future financial or operating performance are "forward looking". All statements in this news release, other than statements of historical fact, which address events or developments that New Gold expects to occur are "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the use of forward-looking terminology such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "projects", "potential", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur" or "be achieved" or the negative connotation of such terms. Forward-looking statements in this news release include, among others, statements with respect to: planned activities for 2014 and 2015 related to the C-zone exploration and project evaluation; the timing, outcomes and expected completion date of such activities; the potential to block cave the C-zone and extend New Afton's mine life; and estimation of mineral reserves and resources and the realization of such estimates.

All forward-looking statements in this news release are based on the opinions and estimates of management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond New Gold's ability to control or predict. Certain material assumptions regarding our forward-looking statements are discussed in this news release, New Gold's MD&As, its Annual Information Form and the New Afton NI 43-101 Technical Report filed at www.sedar.com. In addition to, and subject to, such assumptions discussed in more detail elsewhere, the forward-looking statements in this news release are also subject to the following assumptions: (1) there being no signification disruptions affecting New Gold's exploration activities; (2) political and legal developments in Canada being consistent with New Gold's current expectations; and (3) the accuracy of New Gold's current mineral reserve and resource estimates.

Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: significant capital requirements; price volatility in the spot and forward markets for commodities; fluctuations in the rates of exchange of the currencies of Canada and the United States; changes in national and local government legislation in Canada; controls, regulations and political or economic developments in Canada; the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with permitting requirements; unexpected delays or costs associated with consulting and accommodating the rights of First Nations and other Aboriginal groups; the uncertainties inherent to current and future legal challenges New Gold is or may become a party to; diminishing quantities or grades of reserves and resources; loss of key employees; actual results of current exploration; labour disputes; and defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental events and hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance to cover these risks) as well as "Risk Factors" included in New Gold's disclosure documents filed on and available at www.sedar.com.

Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this news release are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.  

Cautionary Note to U.S. Readers Concerning Estimates of Mineral Reserves and Mineral Resources

Information concerning the properties and operations of New Gold has been prepared in accordance with Canadian standards under applicable Canadian securities laws, and may not be comparable to similar information for United States companies. The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" used in this news release are Canadian mining terms as defined in the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Definition Standards for Mineral Resources and Mineral Reserves adopted by CIM Council on May 10, 2014 and incorporated by reference in National Instrument 43-101 ("NI 43-101").  While the terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" are recognized and required by Canadian securities regulations, they are not defined terms under standards of the United States Securities and Exchange Commission.  As such, certain information contained in this news release concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the United States Securities and Exchange Commission.

An "Inferred Mineral Resource" has a great amount of uncertainty as to its existence and as to its economic and legal feasibility.  Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility of pre-feasibility studies.  It cannot be assumed that all or any part of an "Inferred Mineral Resource" will ever be upgraded to a higher confidence category.   Readers are cautioned not to assume that all or any part of an "Inferred Mineral Resource" exists or is economically or legally mineable.

Under United States standards, mineralization may not be classified as a "Reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the Reserve estimation is made.  Readers are cautioned not to assume that all or any part of the Measured or Indicated Mineral Resources that are not Mineral Reserves will ever be converted into Mineral Reserves. In addition, the definitions of "Proven Mineral Reserves" and "Probable Mineral Reserves" under CIM standards differ in certain respects from the standards of the United States Securities and Exchange Commission.

Technical Information

The scientific and technical information in this news release has been reviewed and approved by Mark A. Petersen, Vice President, Exploration of New Gold. Mr. Petersen is an AIPG Certified Professional Geologist and a "Qualified Person" under National Instrument 43-101.  

Complete Drill Assay Summary


Drill Assay Summary








Drill Hole

From

(metres)

To

(metres)

Interval

(metres)

Estimated True

Width (metres)

Gold

(g/t)

Copper

(%)

EA14-114

0

150

150



No assays


150

707

557


0.08

0.02

EA14-115

0

300

300



No assays


300

706

406


0.13

0.03

C-zone

706

786

80

55

1.07

1.40

Includes

728

752

24


1.82

2.51


786

819

33


0.17

0.14

EA14-116

0

100

100



No assays


100

494

394


0.13

0.03

C-zone

494

568

74

52

0.95

0.94

Includes

494

534

40


1.49

1.50


568

601

33


0.14

0.12

EA14-117

0

2

2



No assays


2

630

628


0.08

0.04

C-zone

630

672

42

21

0.81

0.55


672

743

71


0.13

0.07

EA14-118

0

150

150



No assays


150

534

384


0.23

0.04

C-zone

534

660

126

72

1.47

1.80

Includes

534

612

78


1.96

2.36


660

679

19


0.13

0.03

EA14-119

0

100

100



No assays


100

418

318


0.11

0.03

C-zone

418

534

116

89

0.59

0.71


534

587

53


0.19

0.14

EA14-120

0

300

300



No assays


300

612

312


0.10

0.02

C-zone

612

684

72

61

0.81

0.98


684

721

37


0.26

0.16

EA14-121

0

2

2



No assays


2

430

428


0.15

0.04

C-zone

430

640

210

121

1.20

0.89

Includes

448

524

76


1.92

1.01

EA14-122

0

100

100



No assays


100

384

284


0.08

0.03

C-zone

384

478

94

91

1.65

1.67

Includes

394

444

50


2.39

2.30


478

528

50


0.31

0.25


528

538

10


0.08

0.04

EA14-123

0

50

50



No assays


50

502

452


0.16

0.07

C-zone

502

600

98

87

1.49

1.97

Includes

532

574

42


2.04

2.56





























Drill Hole

From

(metres)

To

(metres)

Interval

(metres)

Estimated True

Width (metres)

Gold

(g/t)

Copper

(%)

EA14-124A

0

300

300



No assays


300

714

414


0.15

0.03

C-zone

714

792

78

58

1.07

1.25


792

825

33


0.08

0.12

EA14-125

0

100

100



No assays


100

392

292


0.08

0.03

C-zone

392

502

110

78

1.35

1.73

Includes

392

428

36


2.26

3.34


502

561

59


0.10

0.04

EA14-126

0

456

456


0.17

0.06

C-zone

456

650

194

98

0.85

0.75

Includes

490

556

66


1.47

0.93

Includes

624

650

26


0.96

1.53


650

654

4


0.11

0.05

EA14-127

0

150

150



No assays


150

526

376


0.13

0.03

       C-zone

526

648

122

72

0.98

1.28

Includes

570

596

26


1.61

1.78

Includes

620

648

28


1.22

1.63

EA14-128

0

100

100



No assays


100

382

282


0.05

0.03

C-zone

382

476

94

86

1.78

1.96

Includes

384

444

60


2.49

2.69


476

522

46


0.26

0.32


444

548

104


0.07

0.09

EA14-129A

0

300

300



No assays


300

658

358


0.09

0.03

C-zone

658

724

66

54

1.33

1.67

Includes

660

686

26


2.07

2.72


724

759

35


0.40

0.08

EA14-130

1

266

265


0.17

0.04

C-zone

520

632

112

76

0.76

0.95

Includes

550

584

34


1.60

1.62


632

718

86


0.15

0.05

EA14-131

0

100

100



No assays


100

660

560


0.16

0.03

C-zone

660

728

68

52

1.15

1.24

Includes

660

684

24


2.08

2.12


728

758

30


0.05

0.07

EA14-132

0

150

150



No assays


150

492

342


0.17

0.05

C-zone

492

582

90

80

1.30

1.89

Includes

492

528

36


2.09

2.78


582

630

48


0.09

0.05

EA14-133

0

300

300



No assays


300

540

240


0.29

0.04

C-zone

540

658

118

57

1.01

1.28

Includes

594

630

36


1.99

2.27


658

712

54


0.06

0.04

 

 








Drill Hole ID

UTM_North
(m)

UTM_East
(m)

Elevation
(masl)

Total Depth
(m)

Azimuth
(degrees)

Inclination
(degrees)

EA14-114

5614591

674921

116.1

707

169.0

-62.7

EA14-115

5614808

674985

67.3

819

150.9

-55.8

EA14-116

5614715

675055

56.6

601

129.9

-52.9

EA14-117

5614602

675001

102.0

743

143.1

-65.8

EA14-118

5614593

674921

118.7

679

157.1

-57.0

EA14-119

5614715

675055

56.6

587

136.1

-51.2

EA14-120

5614808

674985

68.0

721

135.9

-49.9

EA14-121

5614602

675001

102.8

640

147.8

-60.4

EA14-122

5614715

675054

57.3

538

135.6

-46.1

EA14-123

5614592

674921

117.0

600

162.0

-53.8

EA14-124A

5614807

674986

66.7

825

150.4

-55.8

EA14-125

5614715

675055

56.7

561

146.1

-48.1

EA14-126

5614602

675001

102.6

654

159.0

-59.0

EA14-127

5614592

674921

116.9

648

154.1

-57.0

EA14-128

5614715

675055

56.8

548

153.1

-45.1

EA14-129A

5614806

674985

66.7

759

138.1

-52.1

EA14-130

5614602

675001

102.2

719

161.1

-65.1

EA14-131

5614715

675055

56.9

758

143.0

-64.2

EA14-132

5614593

674921

117.5

630

167.8

-53.1

EA14-133

5614806

674984

67.3

712

151.1

-45.9

Note: Drill hole collar coordinates refer to UTM NAD 83-Zone 10 map datum.

PDF available at: http://stream1.newswire.ca/media/2014/09/11/20140911_C2767_PDF_EN_5524.pdf

SOURCE: New Gold Inc.

For further information: Hannes Portmann, Vice President, Corporate Development, Direct: +1 (416) 324-6014, Email: info@newgold.com

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