New Gold Inc. (NGD)

[JohnCM]

Feasibility Study Highlights

First nine years - average annual gold production of 325,000 ounces at total cash costs(1) of $613 per ounce and all-in sustaining costs(2) of $736 per ounce
First nine years - average mill head grade of 1.44 grams per tonne gold
Life-of-mine gold and silver production of 3.4 million ounces and 6.0 million ounces at total cash costs(1) of $663 per ounce and all-in sustaining costs(2) of $765 per ounce
Base case economics - at $1,300 per ounce gold, $22.00 per ounce silver and a 0.95 US$/C$ foreign exchange rate, Rainy River has a pre-tax 5% net present value ("NPV") of $438 million, an internal rate of return ("IRR") of 13.1% and a payback period of 5.4 years
Alternative case economics - at $1,600 per ounce gold, $26.00 per ounce silver and a parity US$/C$ foreign exchange rate, Rainy River has a pre-tax 5% NPV of $1.0 billion, an IRR of 21.1% and a payback period of 3.6 years
Development capital costs of $885 million inclusive of a $70 million contingency
Targeted commissioning in late 2016 with first year of full production in 2017
14-year mine life with direct processing of open pit and underground ore, at a rate of 21,000 tonnes per day ("tpd"), for first nine years and processing of a combination of stockpile and underground ore thereafter
"We are very pleased to have completed the Feasibility Study for our Rainy River project," stated Randall Oliphant , Executive Chairman of New Gold. "The results of the study are entirely consistent with our expectations when we decided to acquire Rainy River Resources. The Project provides our company with an asset that meets all of our key criteria including: solid returns with strong leverage to higher gold prices, manageable capital costs, a robust, long-lived production base with continued regional exploration potential, below industry average costs, and located in a great mining jurisdiction."

- See more at: http://www.newgold.com/investors/NewGoldNews/PressReleaseDetail/2014/New-Gold-Announces-its-Rainy-River-Feasibility-Study-Results/default.aspx#sthash.vnerpGSG.hctc0TZU.dpuf