Projects are Expected to Drive Significant Production Growth and Cost Reduction

New Gold Inc. (TSX: NGD) (NYSE American: NGD) is pleased to announce the completion of significant production milestones at the New Afton copper-gold mine in British Columbia and the Rainy River gold mine in Ontario.

C-Zone, New Afton’s fourth block cave, achieved commercial production ahead of schedule with the materials handling system coming online in October and the cave footprint reaching the targeted hydraulic radius for self-cave propagation. Installation of the gyratory crusher and conveyor system was completed ahead of schedule and C-Zone is now set up for high capacity, low-cost, low-emission ore transportation for the life-of-mine. Additionally, construction of the C-Zone cave footprint has reached the targeted 18 draw bells for hydraulic radius. These two milestones are expected to have an immediate positive impact on unit operating costs and ultimately facilitate a ramp-up to previously achieved processing rates of more than 14,500 tonnes per day by 2026.

At Rainy River, first development ore was mined from Underground Main, ahead of schedule. Underground Main contains the majority of underground mineral reserves at Rainy River and will be an important source of higher-grade production in the coming years to supplement mill feed from the open pit and the Intrepid underground zone. Mining of first ore follows the completion of the main fresh air raise and in-pit portal in the third quarter. With these important milestones completed, the Underground Main project is on track to commence stoping in the first half of 2025 and ramp up to an underground production rate of approximately 5,500 tonnes per day by 2027.

“Today’s announcement highlights delivery of critical milestones at both of our growth projects, ahead of schedule.” stated 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, accessing first development ore from Underground Main marks a key milestone and the underground mine remains well positioned to achieve the 5,500 tonnes per day production target by 2027. Furthermore, technical studies are underway at both operations with the objective of replacing depletion of mineral reserves and unlocking additional value.”

New Afton Achieves Commercial Production at C-Zone, Completes Installation of the Crusher-Conveyor System

• Installation of the C-Zone gyratory crusher was completed in October, approximately two months ahead of schedule. All other components of the materials handling system, including the reclaim apron feeder, conveyors, and transfer stations were previously completed. With installation of the crusher, the materials handling system is fully operational and performing as expected. The materials handling system has a design capacity approximately 24,000 tonnes per day.
• To date, 18 of a total 91 draw bells have been constructed at C-Zone, reaching the targeted cave footprint to achieve steady state self-cave propagation. This marks a transition point in the cave ramp-up schedule which allows New Afton to safely increase the draw rate from C-Zone while closely monitoring cave growth through the extensive instrumentation system.
• C-Zone is on-track to achieve the planned production ramp-up through the remainder of 2024 and 2025 while the B3 cave continues to perform as expected at a current mining rate of approximately 9,000 tonnes per day.
• C-Zone will be one of the most technologically advanced, low-emission underground mines in Canada. The Integrated Operation Centre on surface is now complete and automation of production scoops at B3 is operational during shift-change. The automation system for C-Zone production is on track for completion in the first half of 2025, providing significant safety and productivity benefits.
• The tailings stabilization project is trending ahead of the target completion date of year-end 2025. The piezometer network is showing a positive response to dewatering well operation and the performance of evaporators throughout the summer has reduced pond volumes by approximately 45% from the start of the year.

Rainy River Achieves First Ore from Underground Main and Completes Key Project Milestones

• In late September, Rainy River advanced the first ore development rounds in Underground Main, marking a key milestone as the Company continues to establish additional mining zones and complete key infrastructure in preparation for the production ramp-up to approximately 5,500 tonnes per day from underground by 2027.
• As previously reported, the main ventilation raise was completed on time in the third quarter, providing increased airflow to accommodate additional development headings at the 17 East and ODM East zones of Underground Main. Main fans and heaters are scheduled to be installed at the ventilation raise by summer 2025, completing the main fresh air infrastructure for the life-of-mine.
• The second access portal to the underground mine, at the eastern side of the open pit, was established in the third quarter. The ramp from the underground workings to the pit is expected to be connected by early 2025, providing a second means of egress from the underground mine and significantly reducing underground haulage distances.
• Underground mining at Intrepid continues to perform well, averaging more than 1,000 tonnes per day in September and with grades reconciling positively with the block model.

Technical Studies and Upcoming Catalysts

• The Company continues to make progress on value-adding technical studies at Rainy River and New Afton, following successful exploration results at both operations throughout the year. The objective is to convert a portion of the significant mineral resources at each operation to mineral reserves and continue to expand the pipeline of mineral resources and exploration targets to establish an ongoing cycle of mineral reserves replacement.
• At Rainy River, following the addition of Phase 5 to open pit mineral reserves at the end of 2023, the Company continues to evaluate strategic opportunities to maximize value at Rainy River and further extend open pit mining. Following the positive near-surface exploration results this year, and considering the higher gold price environment, the Company is evaluating the potential for further open pit pushbacks and/or satellite pits to further leverage the existing processing capacity and open pit mining fleet.
• At New Afton, the Company continues to optimize the C-Zone cave draw plan, with the potential to increase mineral reserves at no additional capital expenditure, and advance the East Extension technical study, with the objective of adding a new high-grade zone to the east of the C-Zone block cave. East Extension has the potential to not only improve the New Afton copper and gold production profiles, but also to unlock other high-grade zones in the eastern sector of the mine, including K-Zone and HW Zone.
• The Company will report year-end 2024 mineral reserves and mineral resources in February 2025.
• An updated 3-year operational outlook will also be provided in February, supported by an investor and analyst technical session.
• Technical information for both operations will be provided in updated NI 43-101 Technical Reports in the first quarter of 2025.

About New Gold 

New Gold is a Canadian-focused intermediate mining Company with a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New Afton copper-gold mine. New Gold’s vision is to build a leading diversified intermediate gold company based in Canada that is committed to the environment and social responsibility.