FORT FRANCES, ON — New Gold Inc. has updated the life expectancy of its Rainy River mine.
The company now says the gold mine 65 kilometres northwest of Fort Frances has enough ore to operate until 2031.
That's three years longer than the previous estimate.
The news comes in a recently filed technical report that provides an update on the open pit and expanded underground mine plans.
New Gold president and CEO Renaud Adams called the report "another positive milestone towards delivering sustainable production."
He said he's confident the updated approach for mining the remaining open pit will lead to "a smoother, more consistent grade and production profile."
Adams also said the operation will require low upfront underground development capital.
"Further, all-in sustaining costs continue to remain attractive and [will] decrease significantly after 2023, providing for strong margins and free cash flow over the next decade."
The company had indicated two years ago that there was potential to extend the underground mine life beyond 2028, depending on the prevailing gold price and new ore discoveries.
The Rainy River mine employs about 800 people and is the mainstay of the economy of the Rainy River district.