Vancouver-based New Gold released its feasibility study for its Rainy River gold project near Fort Frances in northwestern Ontario.
The company is projecting 325,000 ounces of annual gold production during the first nine years of operation.
The overall 14-year mine life involves direct processing of open pit and underground ore, at a rate of 21,000 tonnes per day for first nine years and processing of a combination of stockpile and underground ore after that.
With development capital costs of (US) $885 million, targeted commissioning is set for late 2016 with the first year of production in 2017.
"The project team has done a great job advancing Rainy River to this stage," said Robert Gallagher, New Gold’s president and CEO, in a Jan. 16 statement. The project’s environmental assessment report is finished and will be released shortly for regulatory agency and public review.
New Gold basically acquired a turn-key gold project when it finalized its acquisition of Rainy River Resources in October. This feasibility study was done to confirm an earlier study filed by Rainy River Resources last May.