Located in the politically secure jurisdiction of south-central British Columbia, Blackwater is a long-lived, large-scale project that is planned as a conventional truck and shovel open pit mine. The project benefits from our great relationships with Indigenous communities, other stakeholders and regulators – building on the excellent relations established at our New Afton mining operation.

During 2014, work focused on continued advancement of the environmental assessment process, and related environmental and engineering studies. During 2015, New Gold’s focus will be on advancing the project through the permitting phase.

The project has solid economics at current commodity prices. As well as the tax synergies with our other Canadian operations, the project benefits from depreciation of the Canadian dollar relative to the U.S. dollar. This impacts Blackwater’s development and operating costs as well as the project’s overall economics.

There is also significant regional exploration potential on this 1,100 square kilometre land package, which is shaping up to be an exciting new gold district. In 2015, exploration will focus on following up the mineralization that was identified in the area immediately south of the Blackwater deposit in 2014.

In the current commodity price environment, New Gold plans to sequence the development of its projects with the near-term focus on the advancement of the lower capital cost Rainy River project. Thereafter, the timing of Blackwater’s development will be driven by prevailing market conditions over the coming years.