The Rainy River mine is well positioned for a strong finish to the year and to deliver on its updated guidance, dual-listed New Gold said on Thursday.
The company in July lowered its guidance after heavy rainfall and flooding around the Fort Frances area, in Ontario, adversely impacted on Rainy River’s production during the second quarter. Flooding in the pit reduced the mining rate, impacted on the mine sequencing and affected access to the higher grade ore that was planned for the second half of the year.
"The team at Rainy River responded very well following the heavy rainfall and flooding during the second quarter," stated president and CEO Renaud Adams.
"Over the past month, efforts continued on dewatering the pit along with additional operational improvements to position the openpit to its optimal conditions,” he said.
In July and August, Rainy River produced a total of 41 000 gold-equivalent ounces (GEOs).
The updated guidance for Rainy River is to produce between 230 000 GEO and 250 000 GEO, compared with the initially planned 265 000 GEO to 295 000 GEO. All-in sustaining costs will increase to between $1 620/oz and $1 720/oz.