Location:
USA, California
Nearest Landmark:
YUMA
Distance from Landmark:
70 km
Direction from Landmark:
NW
Latitude:
33 Degrees 10 Minutes (North)
Longitude:
115 Degrees 9 Minutes (West)
New Gold Inc. announces 2009 third quarter gold sales increased by 16% to 77,645 ounces from 67,156 ounces in the same period in 2008 and total cash cost decreased by 17% to $470 per ounce sold, net of by-product sales, from $565 per ounce sold in the same period in 2008. Significant increase in tonnes placed on leach pads at both Cerro San Pedro and Mesquite were noted. During the period the company completed of development and initiation of production from the high copper grade Chesney ore body at Peak and completion of development of the high gold grade Perseverance Zone D.
New Gold reported results for the Mesquite Mine in California in the second quarter ended June 30, 2009. The Mesquite Mine was acquired pursuant to the business combination with Western Goldfields on May 27, 2009. The second quarter results include production and sales during the period of ownership. Mesquite produced 9,041 ounces of gold in June 2009 and had gold sales of 11,601 ounces. Cash cost per gold ounce sold was $708 in June 2009. The focus in June 2009 was on waste removal resulting in lower levels of ore mined as the revised 2009 mine plan was implemented. Gold production for the six months ended June 30, 2009 was 59,745 ounces compared to 37,670 ounces produced in the same period in 2008. The ratio of waste to ore was lower in the first six months of 2009 compared to 2008 (4.7 versus 7.0). In the first six months of 2009 tonnes of ore processed increased by 1.9 million tonnes to 4.8 million tonnes. This is due to the fact that Mesquite was in “start-up” mode in the first quarter of 2008. Total cash cost (1) per ounce of gold sold for the six months ended June 2009 was $607 compared to $667 in the same period last year. Total cash costs were higher in the first six months of 2008 as steady state production was not achieved until the end of the first quarter of 2008. Mining at Mesquite continues to be impacted by equipment availability, fewer ounces of gold than expected in an area of the Rainbow pit, and increased consumption of cyanide and lime.
Advanced or Above