JOHANNESBURG (miningweekly.com) – Production at TSX-listed New Gold’s New Afton mine, in, has started with the first ore having been processed through the mill circuit on June 28.
The miner said the June production start met its originally stated timeline and that the commissioning of the mill circuit had also been consistent with its expectations.
The mill circuit had been running on a continuous basis since it received the first ore, with progressively more volume being added.
New Gold anticipated that the daily milling rate would continue to increase over the coming weeks. The company's target for commercial production at New Afton, defined as 30 days of operation at 60% of capacity, or 6 600 t/d, remained August. hot sale beneficiation equipment
In addition to the recent mill production start, New Afton's underground mining operations, which began in the fourth quarter of 2011, continued to perform well. The daily mining rate and the growth in the surface ore stockpile were tracking at or ahead of targeted levels.
hot sale magnetic separator price"We are proud to be in a position to deliver this project on schedule and to see it become the fourth operating mine in our portfolio.
"New Afton is an important part of the history of our company and we look forward to this mine becoming our most significant cash flow generator," president and CEO Robert Gallagher stated.
New Afton's total development cost remained about C$765-million, which was net of revenue from gold and copper sales between the start of production and the commencement of commercial production in August.
New Afton was forecast to produce 35 000 oz to 45 000 oz of gold and 30-million to 35-million pounds of copper at total cash cost, net of by-product credits, of $1 200/oz to $1 300/oz in 2012.
On a coproduct basis, the total cash cost in 2012 was expected to be $630/oz to $650/oz of gold and $1.35/lb to $1.45/lb of copper.
New Gold said the by-product and coproduct costs at New Afton were expected to decrease significantly in 2013 and beyond, as the mine hits its full capacity.
Further, New Afton's production forecast included gold and copper produced between mill hot sale spiral classifier start-up and commercial production. The revenue from this precommercial production would be offset against capital costs.
New Afton gold and copper sales from commercial production for 2012 were anticipated to be 20 000 oz to 30 000 oz of gold and 20-million to 25-million pounds of copper.
Over its currently estimated 12-year mine life, New Afton was expected to produce an average of 85 000 oz of gold and 75-million pounds of copper every year, at a total cash cost, net of by-product credits, of about $1 750/oz.
The total coproduct cash cost was anticipated to reach $525/oz of gold and $1.15/lb of copper.
New Gold's exploration team could now also drill the C-zone block of mineralisation that lay below and to the side of the New Afton reserve block in an effort to add to the mine's base 12-year life.
The company had budgeted $5-million for exploration at New Afton in the second half of 2012 to further explore and delineate the C-zone.