New Gold achieves targeted production increase at New Afton ahead of schedule

Minister of Energy and Mines Bill Bennett and Whitney Nash at New Afton Gold Mine.

New Gold Inc. has announced that its New Afton Mine has successfully achieved the targeted increase in throughput to 12,000 tonnes per day, from a design capacity of 11,000 tonnes per day, three months ahead of schedule. 

The combination of the increased throughput, and higher grades and recoveries, resulted in increased production of both gold and copper during the third quarter at New Afton. As the company hosted an analyst tour to New Afton on October 22, 2013, New Gold today provides preliminary third quarter production and cost results for New Afton as well as the balance of its portfolio of operating mines. The preliminary production and cost information provided reflects approximate figures and may differ slightly from the company's third quarter earnings, which will be announced on October 29, 2013.

New Afton Update

• Average mill throughput of 12,396 tonnes per day in September 2013

Represents 13% increase over 11,000 tonne per day design capacity

• Average mill throughput of 11,967 tonnes per day during third quarter of 2013
• Gold grade continued to reconcile positively against block model
• 80% increase in gold production to 25,220 ounces from 14,014 ounces in the third quarter of 2012
• 88% increase in copper production to 20.9 million pounds from 11.1 million pounds
• Operation successfully tested over five-day period at rates of 14,000 to 15,500 tonnes per day
• Continued positive exploration results at both the C-Zone and East Cave Extension targets

Consolidated 2013 Third Quarter Production and Cost Summary

• Lowest cost quarter in the company's history
• All-in sustaining costs(1) of $779 per ounce

Total cash costs(2) of $280 per ounce compared to $443 per ounce in the prior year period

• Gold production of 94,038 ounces compared to 104,577 ounces in the third quarter of 2012

Copper production increased by 67% to 23.7 million pounds from 14.2 million pounds

• Cash and cash equivalents of $429 million at September 30, 2013

"The third quarter saw our company deliver on a number of very important objectives, however, it also brought with it certain challenges," stated Randall Oliphant , Executive Chairman. "The combination of successfully increasing New Afton's throughput and further reducing our costs positions us well going forward. At the same time, we are disappointed that the operational challenges we encountered at Cerro San Pedro and Mesquite have negatively impacted our quarterly and year-to-date production."

New Gold will provide an update on its production and cost outlook for the fourth quarter and full year 2013 as part of its third quarter earnings announcement on October 29, 2013.