Underground Copper-Gold Mine Worth $115 Million in British Columbia Moving Forward

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Researched by Industrial Info Resources (Sugar Land, Texas)-- New Gold Incorporated (NYSE:NGD ) (Vancouver, British Columbia) has reached a milestone with new mine permits being issued for its Kamloops New Afton underground copper-gold mine west of Kamloops, British Columbia. The mine is expected to have a 12 year life span and production should average 82,000 ounces of gold per year and 78 million pounds of copper. The ore extracted from the mine will be approximately 4 million tons per year. It has been less than a year since the company applied for the construction, operation and reclamation permits for the Copper-Gold mine. The underground development of the mine has been underway for several months in anticipation of the final permits, and the company has already invested millions of dollars on this phase of the project.

Cementation Canada (North Bay, Ontario), a mine-contracting and engineering group that develops and builds underground hard-rock mines, is developing about 30,000 feet of underground access and ventilation drifts required to reach the ore deposit that is beneath the former open pit mine. The $115 million project calls for the construction of the new underground panel mine in the footprint of that former mine. Included in the project are the refurbishment of the existing mill and concentrator.

The New Afton feasibility study team was selected in December 2005. With so much at stake, an impressive team of professionals was assembled to complete the study. Hatch Limited was responsible for the processing and engineering components of the study. Mining methods and reserves were handled by AMC Consulting and Roscoe Postle Associates Incorporated completed the geology and resource sections. Environmental services and permitting was handed over to Rescan Environmental Services Limited. BGC Engineering Incorporated was responsible for tailings-disposal analysis, and Rockland Limited administered the rock-mechanics study.

With the permits in place and the announcement that it had completed the surface rights to more than 4,000 acres of land for the New Afton project from Teck Cominco Limited in October of this year, the company appears to have the project on track for production as early as 2009. Part of the agreement reached was to honor all pre-existing accords made between Teck Cominco and Abacus Mining and Exploration regarding access and rights of way over this land, between the old Afton mill site and the previous Afton tailings facility. New Gold owns 100% of the mineral rights for the project.

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