New Gold
Encyclopedia
New Gold is a multinational mining company with gold, silver and copper containing assets. It engages in both exploratory and production activity in North America (produces in the US, Mexico, development and exploration in Canada), South America (Chile, Brazil) and Australia. Regionally based subsidiaries manage business locally (Minera San Xavier in Mexico, Peak Gold Mines in Australia).
Many of its mines are polymetal
lic meaning they hold significant resources in more than one base metal; New Afton contains tens of millions of pounds and ounces of copper and gold respectively while Cerro San Pedro produces a significant amount of gold and silver. When New Afton begins operations (scheduled for 2012) it will be the company's fourth operating mine; New Gold has made deals with local First Nations groups (Tk’emlups and Skeetchestn) centered around resource sharing and job recruitment. In 2010 New Gold produced 382,911 ounces of gold 26.9% more than the previous year and sold 369,077 ounces at a total cash cost 8% lower (down to $428/oz). Mesquite produced 44% of the gold (169,023 ounces), Cerro San Pedro 31.0% (118,708 ounces) with the rest coming from Peak Mines (95,180 ounces); For 2011 nearly all of the new production is expected to come from Cerro San Pedro. Total production could surpass 400,000 ounces by 2012.
, Peak Gold Ltd. and New Gold Inc. Peak Gold's ceo Bob Gallagher was the first ceo of the new company. It acquired Western Goldfields in March 2009 for Cdn $285 million.
(gold) - Located in Imperial County, California
it was acquired when New Gold merged with Western Goldfields Inc. Contributes about 45% of total production.
Cerro San Pedro (gold and silver) - The mine located in the Mexican state of San Luis Potosí
uses the process of heap leaching
to recover minerals. It holds 52 million ounces of silver and 1.4 million ounces of gold; Gold production was 9% higher in 2009. The property is made up of cretaceous limestone
tertiary diorite
porphyry.
This operation has faced heated opposition from local residents, and was deemed illegal in 2005 by Mexican courts. The mine has been operating without a valid permit ever since.
Peak Gold Mines (gold, copper, lead) - Is in the Cobar Gold Field of NSW Australia (production 15+ million oz cu, 90,000+ oz gold). Began operations in 1992.
New Afton (gold, silver, copper) - Located 10 km. west of Kamloops, British Columbia, Canada, the mine is located on the site of the previous Afton Mine, which had been inactive for a number of years. The mine is expected to begin producing ore in 2012.
Many of its mines are polymetal
Polymetal
Primarily used in chemistry or mining, polymetal or polymetallic refers to a substance composed of a combination of different metals. When the substance contains only two metals the term bimetal is sometimes preferred .* A polymetallic ore is...
lic meaning they hold significant resources in more than one base metal; New Afton contains tens of millions of pounds and ounces of copper and gold respectively while Cerro San Pedro produces a significant amount of gold and silver. When New Afton begins operations (scheduled for 2012) it will be the company's fourth operating mine; New Gold has made deals with local First Nations groups (Tk’emlups and Skeetchestn) centered around resource sharing and job recruitment. In 2010 New Gold produced 382,911 ounces of gold 26.9% more than the previous year and sold 369,077 ounces at a total cash cost 8% lower (down to $428/oz). Mesquite produced 44% of the gold (169,023 ounces), Cerro San Pedro 31.0% (118,708 ounces) with the rest coming from Peak Mines (95,180 ounces); For 2011 nearly all of the new production is expected to come from Cerro San Pedro. Total production could surpass 400,000 ounces by 2012.
History
The company with the New Gold name goes back to 1980 however the bulk of the company as it exists today is the result of a $1.6 billion 2008 merger between Metallica ResourcesMetallica Resources
Metallica Resources Inc. was a Canadian based mineral and gold mining company.Metallica Resources was a publicly held Canadian mineral exploration and development company with a geographic focus in the Americas. The Company had an ownership interest in a gold project at Cerro de San Pedro Mexico...
, Peak Gold Ltd. and New Gold Inc. Peak Gold's ceo Bob Gallagher was the first ceo of the new company. It acquired Western Goldfields in March 2009 for Cdn $285 million.
Operating Mines
Mesquite MineMesquite Mine
The Mesquite Mine, operated by New Gold, is located in Glamis, Imperial County, California. It is one of the largest gold mines in the United States...
(gold) - Located in Imperial County, California
Imperial County, California
Imperial County is a county located in the Imperial Valley, in the far southeast of the U.S. state of California, bordering both Arizona and Mexico. It is part of the El Centro Metropolitan Area, which encompasses all of Imperial County. The population as of 2000 was 142,361. The county seat is the...
it was acquired when New Gold merged with Western Goldfields Inc. Contributes about 45% of total production.
Cerro San Pedro (gold and silver) - The mine located in the Mexican state of San Luis Potosí
San Luis Potosí
San Luis Potosí officially Estado Libre y Soberano de San Luis Potosí is one of the 31 states which, with the Federal District, comprise the 32 Federal Entities of Mexico. It is divided in 58 municipalities and its capital city is San Luis Potosí....
uses the process of heap leaching
Heap leaching
Heap leaching is an industrial mining process to extract precious metals, copper, uranium, and other compounds from ore.The process has ancient origins; one of the classical methods for the manufacture of copperas was to heap up iron pyrite and collect the leachate from the heap, which was then...
to recover minerals. It holds 52 million ounces of silver and 1.4 million ounces of gold; Gold production was 9% higher in 2009. The property is made up of cretaceous limestone
Limestone
Limestone is a sedimentary rock composed largely of the minerals calcite and aragonite, which are different crystal forms of calcium carbonate . Many limestones are composed from skeletal fragments of marine organisms such as coral or foraminifera....
tertiary diorite
Diorite
Diorite is a grey to dark grey intermediate intrusive igneous rock composed principally of plagioclase feldspar , biotite, hornblende, and/or pyroxene. It may contain small amounts of quartz, microcline and olivine. Zircon, apatite, sphene, magnetite, ilmenite and sulfides occur as accessory...
porphyry.
This operation has faced heated opposition from local residents, and was deemed illegal in 2005 by Mexican courts. The mine has been operating without a valid permit ever since.
Peak Gold Mines (gold, copper, lead) - Is in the Cobar Gold Field of NSW Australia (production 15+ million oz cu, 90,000+ oz gold). Began operations in 1992.
New Afton (gold, silver, copper) - Located 10 km. west of Kamloops, British Columbia, Canada, the mine is located on the site of the previous Afton Mine, which had been inactive for a number of years. The mine is expected to begin producing ore in 2012.
Exploration
Both are polymetallic resources.- El Morro (30% interest, copper and gold) - Located in the Atacama Desert, Chile. Initially acquired by Metallica Resources, one of the companies that later merged with New Gold. A controlling interest (70%) in the mine was acquired by GoldcorpGoldcorpGoldcorp Inc. is a gold producer headquartered in Vancouver, British Columbia, Canada. Goldcorp has 16 operations and development projects in 6 countries across the Americas....
in January 2010 from New Gold Inc for a total of $513 million (purchased from Xstrata through New Gold). Barrick GoldBarrick GoldBarrick Gold Corporation is the largest pure gold mining company in the world, with its headquarters in Toronto, Ontario, Canada; and four regional business units located in Australia, Africa, North America and South America...
then sued New Gold and Goldcorp to break up the deal accusing them of violating Chilean law. - New Afton