New Gold Inc. (TSX and NYSE AMEX: NGD) today announces that Goldcorp Inc., its 70% joint venture partner in the El Morro project, has updated the reserves and resources for the project as of December 31, 2010.
Highlights attributable to New Gold's 30% share of the project include:
- 22% increase in Proven and Probable gold reserves to 2.5 million ounces - 8% increase in Proven and Probable copper reserves to 1.8 billion pounds - 1.2 million ounce and 0.5 billion pound increase in Inferred gold and copper resources, respectively, reflecting increased tonnes and higher gold and copper grades in the deeper portions of the La Fortuna deposit as it extends below the current reserve pit.
Combining this El Morro update with the reserves and resources at New Gold's other properties, as updated on February 2, 2011, brings the company's December 31, 2010 Proven and Probable gold reserves to 8.4 million ounces and Measured and Indicated gold resources, inclusive of reserves, to 12.9 million ounces. The 8.4 million ounces of Proven and Probable gold reserves represents a 0.8 million ounce increase over the year end 2009 balance of 8.2 million ounces when taking into account the approximately 0.6 million ounces that were mined during 2010. Further updates to El Morro reserves and resources are anticipated as Goldcorp intends to commence drilling programs following the approval of the Environmental Impact Assessment ("EIA").
"We are pleased with the El Morro reserve and resource update and believe the significant increase in inferred resources substantiates our belief in the upside of this world-class project," stated Robert Gallagher, President and Chief Executive Officer. "We are particularly excited to have a highly motivated partner in Goldcorp who is poised to begin drilling programs in the coming months to further delineate the pit at El Morro and expand on positive results from other targets on the property."
Source: New Gold Inc.