Peak results highlight of New Gold report
Wednesday March 25, 2009
Peak Gold Mines’ record mill throughput is one of the highlights of the yearly report released by New Gold last week.
The report detailed the performance of the company’s mines including Peak Mines, as well as Cerro San Pedro (Mexico), Amapari (Brazil) and the company’s New Afton development in Canada.
New Gold president and chief executive officer Robert Gallagher said the Peak Mines’ figures were pleasing for the company.
“Peak Mines achieved gold sales of 28,815 ounces in the fourth quarter at a realised gold price of $788 per ounce sold and 102,928 ounces at a realised gold price of $877 per ounce for the full year.
“Record mill throughput of 768,727 tonnes in 2008 reflected New Gold’s commitment to constant improvement at its operations and demonstrates the high level of competency of the Peak Mines’ operating team,” Mr Gallagher said.
He said the fourth quarter figures for the Peak Mines showed a higher cash cost than the rest of the year.
“Higher cash cost is solely due to decreasing copper price through the latter half of the year with re-pricing of concentrate in process,” Mr Gallagher said.
“Direct operating costs for 2008, in Australian dollar terms, were only 10 per cent higher than those of 2007, with the cost per tonne milled unchanged year on year.”
Mr Gallagher said overall New Gold had a strong year.
“Despite the unprecedented economic challenges which unfolded in 2008, New Gold made excellent progress on its strategic objectives while exceeding production targets by nine per cent,” he said.
In 2009 approximately $24.5 million of capital expenditure is earmarked for Peak Mines.
“New Gold is forecasting 2009 gold production of between 190,000 and 210,000 ounces at a cash cost of between $465 and $485 per ounce, net of by-product sales.
“As we look forward to 2009, we are committed to delivering on our operational targets,” Mr Gallagher said.
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