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o c t o b e r / n o v e m b e r 2 0 1 6 www.resourceworld.com 39 With a development price tag of $885 mil- lion, the Rainy River Project is an advanced stage gold project located 65 km northwest of Fort Frances, northwestern Ontario. New Gold Inc. [NGD-TSX] is planning to build the mine in keeping with a strategic objective to become a leading intermediate gold producer. It is part of a portfolio that includes four producing assets and two significant development projects. They include the New Afton Mine in British Columbia, the Mesquite Mine in the US, the Peak Mines in Australia and Cerro San Pedro Mine in Mexico. New Gold owns both the Rainy River and Blackwater projects, located in Ontario and British Columbia respectively as well as a 4% gold stream from the El Morro Project in Chile. Having produced 190,234 ounces of gold in the first six months of 2016, New Gold is on track to meet its full year pro- duction guidance of 360,000-400,000 ounces. The company also produced a higher than expected 51.1 million pounds of copper in the first six months of this year. As a result, it now expects to produce up to 93 million ounces of copper for the year as well as up to 1.8 million ounces of silver. The Rainy River property's proximity to vital infrastructure and local communities is a key factor in the company's decision to build and operate an underground and open pit gold and silver mine. The project is expected to produce 325,000 ounces of gold and almost 500,000 ounces of silver annually at below industry average costs. Proven and probable reserves are estimated at 4 million ounces of gold and 10 million ounces of silver. New Gold has estimated the project will provide 400 jobs during construction and 600 once the mine is operating. The mine is also expected to create indirect employ- ment for up to 3,000 people. As the company looks ahead to start- up next year, officials say they have made a big effort to engage local First Nations and Metis community members in the planning process. More than 30% of the current work force of 180 is comprised of Aboriginal workers. "The construction of the processing facilities and initial mining activities are both going very well and we are making good progress in resolving the challenge we encountered earlier this year related to the ground conditions at the water and tailings management facilities,'' Randall Oliphant, the company's Executive Chairman said recently. The focus of 2016 development activi- ties is the construction of the processing facilities and supporting infrastructure as well as the initial stripping of the open pit. Production from Rainy River is expected to offset the decrease in output and cash flow arising from the transition of Cerro San Pedro to residual leaching. During the second quarter, the installation of the mechanical, piping and electrical and instrumentation started in both in the grinding building and primary crusher. The first ball mill shell was also installed. The mine operations team moved approxi- mately 5 million tonnes of waste and overburden during the quarter, bringing the total material moved at the close of the second quarter to 7 million tonnes. n ONTariO MCKINNON-HAWKINS GOLD PROJECT – FINDING THE NEXT HEMLO • Includes the McKinnon Property, staked by Don McKinnon Sr. of Hemlo fame, with a current, recent (May 2016) 43-101 compliant Inferred Resource, based on an open pit application, estimate of 4,957,000 tonnes at a grade of 1.50 g/t Au for a total of 239,100 ounces of gold • Current team includes Don Mckinnon Jr., Robert Weicker, a past chief geologist at Hemlo (Williams Mine) and Mr. Victor Bradley – currently director of Osisko Gold Royalties Ltd., past Chairman of Osisko Mining and Founder of Yamana Gold Inc. • Excellent potential to grow the resource • Fully permitted drill targets SSS – TSX CONTACT INFORMATION: Mike England, CEO, 604-683-3995, email: mike@engcom.ca www.sunvestminerals.com New Gold's Rainy River mine development underway by Peter Kennedy