Can you give us an update regarding the Rainy River mine and its production plans?

In 2021, we took the time to reassess the operation’s unique characteristics. The evaluation process produced a new NI 43-101 that was released in March 2022, which we have been focused on executing. The updated report extended Rainy River’s mine life to 2031 with the conversion of an additional 569,000 gold ounces in the underground main zones to Mineral Reserves. Currently, Rainy River is entering the next phase, which focuses on optimization, free cash flow and profitability. The mine is to transition from open pit to underground, and in the fourth quarter of this year we will start mining from the Intrepid underground zone. When the open-pit is depleted in 2026, the mine will transition to a full underground operation. Beginning in 2029, a cost-effective batch processing approach is expected to be implemented to mill the underground material.  In the meantime, Rainy River will be one of the few mines in Canada that combines both open-pit and underground mining. The updated technical report leads to both a smoother and sustainable mill grade and gold production profile.

What is your strategy to decrease all-sustaining costs and increase gold production over the next few years at Rainy River?

We have invested a lot of time and resources in the last few years with a focus on waste stripping to optimize the mine plan and provide better access to the ore. As a result, we are now in an excellent position to reap the benefits of this work. Between 2022 and 2026, we expect better access to open-pit ore until depletion. In addition, incorporating some underground mining set to commence in late-2022 will lead to an improved grade profile compared to an open-pit only mining scenario. The combination of both, results in a systematic increase of grade year over year, ultimately leading to higher production. Simultaneously, the need for stripping of the pit will no longer be needed, allowing capital to be allocated elsewhere. As we deplete the pit, we will also transition equipment. This will lower all-in sustaining costs at the mine meaningfully, from 2024 through the rest of the mine life. Looking beyond the current mine life, exploration remains key. Over the next few years, while we continue to mine the open-pit, we will continue our exploration program in order to identify satellite deposits to further extend the existing life of mine.

What are New Gold’s plans for New Afton?

The New Afton mine is located west of Kamloops in British Columbia and it is a high-quality copper-gold asset. It is also one of the few block-caving assets in North America, putting New Gold at the helm when it comes to block caving. The mine’s life extends to at least 2030 and we are actively exploring with the goal of extending that. It is in close proximity to the city, which brings a lot of stability. We have been block-caving there for 10 years and have a high level of expertise and talent at the mine. This is an asset that has generated over US$800 million of free cash flow since it’s start-up in 2012. In late-2019, it was time to urgently address the asset’s future, so in 2020 it was decided that the asset’s cash flow would be reinvested back into the mine between 2022 to 2024 in order to extend the mine life through the development of the C-Zone. The investment in C-Zone is approximately US$500 million, with more than half of this has already been incurred, and the remaining portion to be funded through New Afton’s cash flow. This investment on average increases gold and copper production by over 125% and 75%, respectively, when compared to our 2022 guidance. New Afton is a block cave mine and New Gold will be the first to conduct in-pit tailings disposal, starting this year. In fact, commissioning is already underway.

We continue to build on our relationships with the community. Late last year, a new co-operative agreement was signed with the SSN community around the mine and we look forward to continuing this relationship as we look for additional ways to add value to New Afton.

How are you navigating ongoing inflationary pressures?

Inflation has challenged many of us in the industry, and we're no exception. We felt the same pressure as our peers, mainly on diesel, consumables, but also electricity at Rainy River. But I've been able to partially offset these higher prices with the benefit of having two Canadian assets in a period of a weakening Canadian dollar. New Gold continues to evaluate potential optimization and assess cost reduction initiatives in an effort to mitigate these pressures. We remain committed to delivering on our guidance.The labor supply challenges concern me more than inflation. Ontario is developing large mines and the industry is stretched in terms of availability of skills.

What do you foresee for the gold mining sector in Ontario? / Do you have a final message for our audience?

2021 saw a number of mergers in the industry. In particular, Kirkland Lake and Agnico Eagle was a great step in creating and solidifying a Canadian focused mining company. The industry must be open-minded to attract the technical skills needed and must undergo a process of consolidation to continue to perform. As we look to the future, the advancements with First Nations and equal opportunities are crucial to the success to both the industry and our Company. Inclusion and diversity should drive businesses, primarily mining. It should not be approached as an obligation, but as the right thing to do. If commodity prices remain strong over the coming years, then mining in Canada will truly channel its growth and play a leading role on the global stage. Our vision is to have New Gold contribute to that leading role.