Increased Gold Resources At Blackwater Project

 

VANCOUVER - New Gold Inc. reported a Mineral Resource update at its Blackwater Project in Canada. The Blackwater resource, which will be used for the project's Feasibility Study, has been updated to include: 89 additional holes including further infill drilling and more refined geologic and geostatistical modeling.

Blackwater Mineral Resource Update Highlights: Measured and Indicated gold resources for direct processing increased to 8.6 million ounces at higher grade; and Measured gold resources increased by 44% to 3.9 million ounces at 1.04 grams per tonne.

"We are very pleased to now have the Blackwater resource finalized for our Feasibility Study, which remains on target for completion in late 2013," stated Randall Oliphant , Executive Chairman. "It is particularly gratifying to see that the classification of the resource has been further upgraded and the grades have increased."

The current Blackwater Mineral Resource estimate includes 1,002 holes totaling 309,509 metres. As previously disclosed, New Gold is segregating the portion of mineralized material that should be processed directly versus that which the company plans to stockpile and process toward the end of the project's mine life. The company has utilized a dual cut-off strategy to outline this segregation. Consistent with the previous Blackwater Mineral Resource estimate, all material with a gold-equivalent cut-off of greater than 0.4 grams per tonne is considered for direct processing, while all material with a gold-equivalent cut-off between 0.3 and 0.4 grams per tonne is planned to be stockpiled.