New Gold Announces Results for 22 Holes at Blackwater Project - Further Extends Mineralization
VANCOUVER, June 27 /PRNewswire/ - New Gold Inc. ("New Gold") (TSX:NGD)(NYSEAMEX:NGD) today announces the drill results for 22 additional holes on its Blackwater Project in central British Columbia. The results demonstrate the continuity of mineralization to both the northwest and northeast, with strong grades over solid widths. These results include infill and step-out holes drilled within and around the currently defined mineral resource. Highlights include:
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Northwest Sector
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Hole From To Interval Weighted
ID (metres) (metres) (metres) Average
Gold
Grade
(g/t)
-----------------------------------------------------
BW-149 205 435 230 1.41
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BW-158 104 263 159 1.29
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BW-162 44 362 318 1.39
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BW-170 93 270 177 1.10
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Northeast Sector
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Hole From To Interval Weighted
ID (metres) (metres) (metres) Average
Gold
Grade
(g/t)
-----------------------------------------------------
BW-153 132 304 172 0.91
-----------------------------------------------------
BW-157 77 217 140 1.27
-----------------------------------------------------
BW-163 265 330 65 1.45
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BW-167 196 246 50 1.11
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"The latest results continue to demonstrate good continuity of gold mineralization within the deposit and excellent potential to expand the mineral resource beyond its currently known limits," stated Mark Petersen, Vice President, Exploration. "As we have significantly increased the Blackwater exploration program for the second half of 2011, we look forward to further results."
These most recent results comprise drilling that was completed between the announcement (April 4, 2011) and closing (June 1, 2011) of New Gold's acquisition of Richfield Ventures Corp., that previously held the Blackwater Project. As previously announced, New Gold has increased the drill program for the project and plans to drill 40,000 to 50,000 metres, or approximately 100 holes, in the second half of 2011. The company is budgeting $20 million for this program. New Gold's exploration program will target both the 100%-owned southern portion of the project and the 75%-owned northern portion, where Silver Quest Resources Ltd. owns the remaining 25%. All 22 holes released today were drilled on the northern portion of the Blackwater property.
New Gold looks forward to providing further updates on the company's exploration efforts at its Blackwater Project. A Preliminary Economic Assessment is expected by mid-2012.
Drill Hole Data
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Drill Hole From To Interval Au g/t
------------------------------------------------------------------------
BW-149 0 31.5 31.5 NA
31.5 56 24.5 0.17
56 66 10.0 0.92
66 143 77.0 0.21
143 151 8.0 0.82
151 205 54.0 0.19
-----------------------------------------------------
205 434.6 229.6 1.41
Includes 205 210 5.0 2.33
210 233 23.0 0.34
233 234 1.0 8.55
234 278 44.0 0.29
278 331 53.0 0.61
331 337 6.0 15.13
337 348 11.0 1.41
348 368 20.0 0.38
368 397 29.0 0.79
397 407 10.0 2.93
407 423 16.0 0.91
423 434.6 11.6 5.53
------------------------------------------------------------------------
BW-150 0 3 3.0 NA
3 127 124.0 0.08
127 128 1.0 5.55
128 261 133.0 0.17
261 271 10.0 0.62
271 332 61.0 0.08
332 334 2.0 0.88
334 340.4 6.4 0.10
------------------------------------------------------------------------
BW-151 0 1 1.0 NA
1 159 158.0 0.10
159 172 13.0 0.34
172 208 36.0 0.75
208 244 36.0 0.36
244 245 1.0 4.11
245 339 94.0 0.28
339 340 1.0 13.60
340 353.3 13.3 0.20
------------------------------------------------------------------------
BW-152 0 3 3.0 NA
3 86 83.0 0.19
-----------------------------------------------------
86 152 66.0 0.71
Includes 85 140 55.0 0.50
140 141 1.0 8.30
141 152 11.0 1.03
-----------------------------------------------------
152 180 28.0 0.14
180 186 6.0 1.17
186 244 58.0 0.15
244 254 10.0 1.75
254 383 129.0 0.12
------------------------------------------------------------------------
------------------------------------------------------------------------
Drill Hole From To Interval Au g/t
------------------------------------------------------------------------
BW-153 0 9 9 NA
9 50 41.0 0.11
50 52 2.0 6.12
52 87 35.0 0.17
87 89 2.0 4.48
89 132 43.0 0.11
-----------------------------------------------------
132 304 172.0 0.91
Includes 132 179 47.0 0.79
179 181 2.0 6.98
181 227 46.0 0.80
227 237 10.0 2.14
237 278 41.0 0.23
278 291 13.0 2.27
291 304 13.0 0.70
-----------------------------------------------------
304 407.8 103.8 0.08
------------------------------------------------------------------------
BW-154 0 9 9.0 NA
-----------------------------------------------------
9 226 217.0 0.61
Includes 9 25 16.0 0.34
25 28 3.0 8.70
28 70 42.0 0.30
70 110 40.0 0.87
110 133 23.0 0.31
133 161 28.0 0.75
161 174 13.0 0.32
174 186 12.0 0.08
186 226 40.0 0.51
-----------------------------------------------------
226 377.3 151.3 0.10
------------------------------------------------------------------------
BW-155 0 1 1.0 NA
1 147 146.0 0.16
147 175 28.0 0.53
175 201 26.0 0.38
201 221 20.0 0.18
221 222 1.0 3.37
222 248 26 0.38
248 375.5 127.5 0.16
------------------------------------------------------------------------
BW-156 0 27 27.0 NA
27 46 19.0 0.39
46 89 43.0 0.12
89 100 11.0 0.47
100 101 1.0 15.00
101 113 12.0 0.57
113 135 22.0 0.07
135 139 4.0 165.38
139 149 10.0 0.98
149 211 62.0 0.12
211 226 15.0 0.53
226 253 27.0 0.07
253 273 20.0 0.58
273 339.4 66.4 0.09
------------------------------------------------------------------------
------------------------------------------------------------------------
Drill Hole From To Interval Au g/t
------------------------------------------------------------------------
BW-157 0 10 10.0 NA
10 19 9.0 1.57
19 42 23.0 0.17
42 45 3.0 2.67
45 77 32.0 0.22
-----------------------------------------------------
77 217 140.0 1.27
Includes 77 81 4.0 0.74
81 82 1.0 9.15
82 91 9.0 0.39
91 142 51.0 1.22
142 147 5.0 7.49
147 172 25.0 0.84
172 189 17.0 0.31
189 217 28.0 1.31
-----------------------------------------------------
217 249 32.0 0.21
249 254 5.0 0.84
254 303 49.0 0.18
303 310 7.0 0.85
310 375.8 65.8 0.11
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BW-158 0 1 1.0 NA
1 104 103.0 0.08
-----------------------------------------------------
104 263 159.0 1.29
Includes 104 124 20.0 1.16
124 125 1.0 46.00
125 129 4.0 2.28
129 159 30.0 0.55
159 160 1.0 27.40
160 164 4.0 1.07
164 182 18.0 1.04
182 204 22.0 0.34
204 263 59.0 0.75
-----------------------------------------------------
263 326 63.0 0.27
326 371.5 45.5 0.14
------------------------------------------------------------------------
BW-159 0 19 19.0 NA
19 69 50.0 0.19
69 79 10.0 1.00
79 161 82.0 0.11
-----------------------------------------------------
161 341 180.0 0.85
Includes 161 169 8.0 0.75
169 170 1.0 25.70
170 194 24.0 1.29
194 232 38.0 0.38
232 233 1.0 9.85
233 257 24.0 0.76
257 274 17.0 0.32
274 284 10.0 0.98
284 293 9.0 0.27
293 296 3.0 2.83
296 311 15.0 0.27
311 331 20.0 0.69
-----------------------------------------------------
331 366.7 35.7 0.17
------------------------------------------------------------------------
BW-160 0 11 11.0 NA
11 58 47.0 0.06
58 111 53.0 0.28
111 114 3.0 1.93
114 144 30.0 0.33
144 395.6 251.6 0.13
------------------------------------------------------------------------
------------------------------------------------------------------------
Drill Hole From To Interval Au g/t
------------------------------------------------------------------------
BW-161 0 4 4.0 NA
4 269 265.0 0.04
-----------------------------------------------------
269 338 69.0 0.64
Includes 269 317 48.0 0.51
317 338 21.0 0.94
-----------------------------------------------------
338 350.5 12.5 0.20
------------------------------------------------------------------------
BW-162 0 3 3.0 NA
3 20 17.0 0.09
20 29 9.0 0.83
29 44 15.0 0.18
-----------------------------------------------------
44 361.5 317.5 1.39
Includes 44 54 10.0 1.45
54 55 1.0 15.30
55 58 3.0 1.44
58 59 1.0 10.50
59 73 14.0 0.91
73 103 30.0 0.52
103 150 47.0 0.26
150 169 19.0 1.01
169 172 3.0 7.27
172 221 49.0 1.15
221 236 15.0 0.18
236 282 46.0 3.31
282 283 1.0 33.50
283 317 34.0 1.25
317 347 30.0 0.27
347 359 12.0 0.65
359 360 1.0 10.10
360 361.5 1.5 1.15
------------------------------------------------------------------------
BW-163 0 11 11.0 NA
11 17 6.0 0.06
17 24 7.0 1.69
24 41 17.0 0.33
41 265 224.0 0.14
-----------------------------------------------------
265 330 65.0 1.45
Includes 265 309 44.0 0.64
309 322 13.0 1.64
322 323 1.0 20.20
323 330 7.0 3.56
-----------------------------------------------------
330 381 51.0 0.16
381 389 8.0 1.05
389 412.4 23.4 0.13
------------------------------------------------------------------------
BW-164 0 8 8.0 NA
8 69 61.0 0.08
69 72 3.0 1.09
72 168 96.0 0.14
168 178 10.0 0.48
178 208 30.0 0.13
208 211 3.0 0.83
211 285 74.0 0.16
285 289 4.0 0.80
289 298 9.0 0.32
298 359 61.0 0.09
359 360 1.0 4.34
360 383.0 23.0 0.12
------------------------------------------------------------------------
------------------------------------------------------------------------
Drill Hole From To Interval Au g/t
------------------------------------------------------------------------
BW-165 0 4 4.0 NA
4 115 111.0 0.03
115 118 3.0 0.77
118 252 134.0 0.06
252 279.8 27.8 0.27
------------------------------------------------------------------------
BW-166 0 3 3.0 NA
3 130 127.0 0.04
130 167 37.0 0.44
167 197 30.0 0.76
197 217 20.0 0.41
217 228 11.0 0.19
228 235 7.0 0.78
235 252 17.0 0.23
252 263 11.0 0.65
263 307 44.0 0.24
------------------------------------------------------------------------
BW-167 0 10 10.0 NA
10 65 55.0 0.08
65 76 11.0 0.52
76 166 90.0 0.10
166 167 1.0 4.64
167 184 17.0 0.43
184 196 12.0 0.23
-----------------------------------------------------
196 246 50.0 1.11
Includes 196 238 42.0 0.88
238 241 3.0 4.13
241 246 5.0 1.27
-----------------------------------------------------
246 269.9 23.9 0.19
------------------------------------------------------------------------
BW-168 0 25 25.0 NA
25 178 153.0 0.09
178 180 2.0 1.95
180 253 73.0 0.11
253 255 2.0 4.84
255 260 5.0 0.51
260 401.1 141.1 0.12
------------------------------------------------------------------------
BW-169 0 2 2.0 NA
2 162 160.0 0.08
162 175 13.0 0.58
175 247 72.0 0.21
247 250 3.0 3.81
250 274 24.0 0.45
274 353.0 79.0 0.19
------------------------------------------------------------------------
------------------------------------------------------------------------
Drill Hole From To Interval Au g/t
------------------------------------------------------------------------
BW-170 0 20 20.0 NA
20 52 32.0 0.18
52 53 1.0 7.40
53 71 18.0 0.20
71 83 12.0 0.87
83 93 10.0 0.13
-----------------------------------------------------
93 270 177.0 1.10
Includes 93 104 11.0 1.02
104 115 11.0 0.10
115 142 27.0 1.45
142 143 1.0 17.60
143 157 14.0 0.85
157 158 1.0 7.70
158 163 5.0 0.24
163 164 1.0 8.10
164 188 24.0 1.18
188 193 5.0 4.09
193 248 55.0 0.47
248 249 1.0 8.30
249 270 21.0 0.56
-----------------------------------------------------
270 294 24.0 0.20
294 345 51.0 0.56
345 410 65.0 0.27
410 436 26.0 0.96
Includes 410 412 2.0 3.11
412 431 19.0 0.42
431 436 5.0 2.17
-----------------------------------------------------
436 449.5 13.5 0.18
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A map outlining the locations of the drill holes is available on New Gold's website at http://www.newgold.com/Properties/Projects/Blackwater/default.aspx
Quality Assurance
New Gold maintains a Quality Assurance / Quality Control ("QA/QC") program at the Blackwater Project using industry best practices that are consistent with the QA/QC protocols in use at all of its exploration and development projects. Key elements of New Gold's QA/QC program include chain of custody of samples, regular insertion of certified reference standards and blanks, and duplicate check assays. Drill core is halved and shipped in sealed bags to Eco Tech Laboratories in Kamloops, British Columbia. Check analyses are completed by ALS Chemex Laboratories, Vancouver, British Columbia.
About New Gold Inc.
New Gold is an intermediate gold mining company. The company has a portfolio of three producing assets and three significant development projects. The Mesquite Mine in the United States, the Cerro San Pedro Mine in Mexico and Peak Gold Mines in Australia are expected to produce between 380,000 and 400,000 ounces of gold in 2011. The fully-funded New Afton project in Canada is scheduled to add further growth in 2012. In addition, New Gold owns 30% of the world-class El Morro project located in Chile and, in June 2011, New Gold acquired the exciting Blackwater project in Canada. For further information on the company, please visit www.newgold.com.
Cautionary Note Regarding Forward-Looking Statements
Certain information contained in this news release, including any information relating to New Gold's future financial or operating performance may be deemed "forward looking". All statements in this news release, other than statements of historical fact, that address events or developments that New Gold expects to occur, are "forward-looking statements". Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "does not expect", "plans", "anticipates", "does not anticipate", "believes", "intends", "estimates", "projects", "potential", "scheduled", "forecast", "budget" and similar expressions, or that events or conditions "will", "would", "may", "could", "should" or "might" occur. All such forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are subject to important risk factors and uncertainties, many of which are beyond New Gold's ability to control or predict. Forward-looking statements are necessarily based on estimates and assumptions (including that the business of Richfield will be integrated successfully in the New Gold organization) that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: significant capital requirements; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Mexico and Chile; price volatility in the spot and forward markets for commodities; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local government legislation in Canada, the United States, Australia, Mexico and Chile or any other country in which New Gold currently or may in the future carry on business; taxation; controls, regulations and political or economic developments in the countries in which New Gold does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction that New Gold operates, including, but not limited to, Mexico, where New Gold is involved with ongoing challenges relating to its environmental impact statement for the Cerro San Pedro Mine; the lack of certainty with respect to the Mexican and other foreign legal systems, which may not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law; the uncertainties inherent to current and future legal challenges the company is or may become a party to, including the third party claim related to the El Morro transaction with respect to New Gold's exercise of its right of first refusal on the El Morro copper-gold project in Chile and its partnership with Goldcorp Inc., which transaction and third party claim were announced by New Gold in January 2010; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance to cover these risks) as well as "Risk Factors" included in New Gold's disclosure documents filed on and available at www.sedar.com. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this news release are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws.
Technical Information
The scientific and technical information in this news release has been reviewed by Mark Petersen, a Qualified Person under National Instrument 43-101 and employee of New Gold.
SOURCE New Gold Inc.
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