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(All figures are in US dollars unless otherwise indicated)
VANCOUVER, Jan. 25 /PRNewswire-FirstCall/ - New Gold Inc. ("New Gold") (TSX and NYSE AMEX-NGD) today announces record quarterly and annual gold production of 111,672 and 301,773 ounces, respectively, with annual production exceeding the guidance range of 270,000 to 300,000 ounces. Total cash cost(1) for 2009 was $462 per ounce sold, net of by-product sales, below the guidance range of $470 to $490 per ounce sold. The preliminary production and total cash cost(1) information provided are approximate figures and may differ slightly from the final results included in the 2009 annual audited financial statements and MD&A. New Gold is also pleased to provide guidance for 2010 with forecast gold production expected to increase further to 330,000 to 360,000 ounces at total cash cost(1) of $445 to $465 per ounce sold, net of by-product sales.
Fourth Quarter and Full Year 2009 Highlights
Results presented below are for the period of ownership for the Mesquite (June 1, 2009) and Cerro San Pedro mines (June 30, 2008).
- Highest quarterly gold production for the company in the fourth
quarter with an increase of 41% to 111,672 ounces from 78,950 ounces
in the same period in 2008
- Total cash cost(1) in the fourth quarter decreased 17% to $473 per
ounce sold, net of by-product sales, from $567 per ounce sold in the
same period in 2008
- Gold production in 2009 increased 29% to 301,773 ounces from 233,103
ounces in 2008
- Total cash cost(1) in 2009 decreased 18% to $462 per ounce sold, net
of by-product sales, from $566 per ounce sold in 2008
- New Afton achieved its highest quarterly underground advance in 2009
with 634 metres
All three of New Gold's operating mines had excellent gold production results with Cerro San Pedro and Peak Mines also producing silver and copper, respectively, above guidance. As anticipated, the Mesquite mine achieved its highest quarterly production since the mine was brought back into production in January 2008 with 61,245 ounces of gold produced during the fourth quarter. Cerro San Pedro was able to meet guidance despite the temporary shutdown of mining operations between November 19, 2009 and December 14, 2009. Peak Mines had another strong quarter of gold and copper production, and, importantly, was able to sell down a large portion of its concentrate inventory resulting in increased sales and cash flow for New Gold. Across its operations, New Gold's total cash cost(1) for 2009 was $462 per ounce sold, net of by-product sales, below the guidance range of $470 to $490 per ounce of gold sold and considerably below the $566 per ounce of gold sold in 2008.
"We are extremely pleased with the company's operating performance in 2009; our operations bettered production and cash cost guidance and New Afton continues on its steady path toward production," stated Robert Gallagher, President and Chief Executive Officer. "With our successful operational performance, New Gold is well positioned for even better results in 2010."
Fourth quarter and full year results for 2009 are presented in the table below, for the period of ownership for the Mesquite (June 1, 2009) and Cerro San Pedro (June 30, 2008) mines.
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