At December 31, 2009, New Gold's attributable Proven and Probable gold reserves increased to 8.2 million ounces from 7.4 million ounces, including gold reserves at the Mesquite Mine, at December 31, 2008. Total Measured and Indicated gold resources, inclusive of reserves, increased to 13.5 million ounces from 12.1 million ounces over the same period.
Highlights of the reserves and resources update include:
DETAILED RESERVES AND RESOURCES SUMMARY
| MINERAL RESERVES AND RESOURCES SUMMARY AS OF DECEMBER 31, 2009 | |||||
|---|---|---|---|---|---|
| Contained Metals | |||||
| Gold (Koz) | Silver (Koz) | Copper (Mlbs) | Zinc (Mlbs) | Lead (Mlbs) | |
| Reserves | |||||
| Proven | 3,463 | 31,200 | 930 | - | - |
| Probable | 4,716 | 25,012 | 1,844 | - | - |
| Total P&P | 8,179 | 56,212 | 2,774 | - | - |
| Resources | |||||
| Measured | 5,694 | 44,774 | 1,935 | 332 | 79 |
| Indicated | 7,841 | 39,823 | 1,746 | 660 | 123 |
| Total M&I | 13,536 | 84,597 | 3,680 | 992 | 203 |
| Inferred | 6,817 | 102,713 | 541 | 3,245 | 500 |
See Notes to mineral reserves & resources statements for further detail on reserves and resources calculations.
| MINERAL RESERVES STATEMENT AS OF DECEMBER 31, 2009 | |||||||
|---|---|---|---|---|---|---|---|
| Metal Grade | Contained Metal | ||||||
| Tonnes 000's |
Gold g/t |
Silver g/t |
Copper % |
Gold Koz |
Silver Koz |
Copper Koz |
|
| Mesquite | |||||||
| Proven | 73,522 | 0.60 | - | - | 1,411 | - | - |
| Probable | 93,287 | 0.58 | - | - | 1,725 | - | - |
| Mesquite P&P | 166,809 | 0.58 | - | - | 3,137 | - | - |
| Cerro San Pedro | |||||||
| Proven | 42,709 | 0.61 | 22.41 | - | 838 | 30,772 | - |
| Probable | 35,452 | 0.50 | 18.79 | - | 570 | 21,417 | - |
| CSP P&P | 78,161 | 0.56 | 20.77 | - | 1,408 | 52,189 | - |
| Peak | |||||||
| Proven | 1,212 | 3.92 | 11.00 | 0.79 | 153 | 417 | 21 |
| Probable | 2,598 | 5.00 | 6.00 | 0.80 | 418 | 501 | 46 |
| Peak P&P | 3,810 | 4.66 | 7.59 | 0.80 | 570 | 918 | 67 |
| New Afton | |||||||
| Proven | - | - | - | - | - | - | - |
| Probable | 47,400 | 0.69 | 2.03 | 0.95 | 1,052 | 3,094 | 993 |
| New Afton P&P | 47,400 | 0.69 | 2.03 | 0.95 | 1,052 | 3,094 | 993 |
| El Morro | 100% Basis | 30% Basis | |||||
| Proven | 208,473 | 0.53 | - | 0.66 | 1,062 | - | 909 |
| Probable | 241,761 | 0.41 | - | 0.50 | 951 | - | 806 |
| El Morro P&P | 450,234 | 0.46 | - | 0.58 | 2,013 | - | 1,715 |
See Notes to mineral reserves & resources statements for further detail on reserves and resources calculations.
| MINERAL RESOURCE STATEMENT (INCLUSIVE OF RESERVES) AS OF DECEMBER 31, 2009 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Metal Grade | Contained Metal | ||||||||||
| Tonnes 000's |
Gold g/t |
Silver g/t |
Copper % |
Zinc % |
Lead % |
Gold Koz |
Silver Koz |
Copper Mlbs |
Zinc Mlbs |
Lead Mlbs |
|
| Mesquite | |||||||||||
| Measured | 111,576 | 0.52 | - | - | - | - | 1,860 | - | - | - | - |
| Indicated | 185,363 | 0.50 | - | - | - | - | 3,004 | - | - | - | - |
| Mesquite M&I | 296,939 | 0.51 | - | - | - | - | 4,865 | - | - | - | - |
| Cerro San Pedro | |||||||||||
| Measured (oxide) | 48,254 | 0.52 | 19.72 | - | - | - | 799 | 30,600 | - | - | - |
| Indicated (oxide) | 43,861 | 0.39 | 14.79 | - | - | - | 556 | 20,859 | - | - | - |
| CSP M&I (oxide) | 92,115 | 0.46 | 17.38 | - | - | - | 1,355 | 51,459 | - | - | - |
| Measured (sulphide) | 18,739 | 0.53 | 17.10 | - | 0.80 | 0.19 | 320 | 10,305 | - | 332 | 79 |
| Indicated (sulphide) | 42,307 | 0.42 | 11.79 | - | 0.71 | 0.13 | 576 | 16,036 | - | 660 | 123 |
| CSP M&I (sulphide) | 61,046 | 0.46 | 13.42 | - | 0.74 | 0.15 | 897 | 26,341 | - | 992 | 203 |
| Peak | |||||||||||
| Measured | 2,453 | 3.70 | 9.00 | 1.05 | - | - | 295 | 715 | 57 | - | - |
| Indicated | 3,614 | 4.80 | 7.00 | 0.88 | - | - | 554 | 775 | 70 | - | - |
| Peak M&I | 6,067 | 4.36 | 7.81 | 0.95 | - | - | 849 | 1,490 | 127 | - | - |
| New Afton | |||||||||||
| Measured | 35,100 | 0.91 | 2.80 | 1.26 | - | - | 1,027 | 3,160 | 975 | - | - |
| Indicated | 29,900 | 0.67 | 2.20 | 0.85 | - | - | 644 | 2,115 | 560 | - | - |
| New Afton M&I | 65,000 | 0.80 | 2.52 | 1.07 | - | - | 1,671 | 5,275 | 1,535 | - | - |
| El Morro | 100% Basis | 30% Basis | |||||||||
| Measured | 211,164 | 0.54 | - | 0.65 | - | - | 1,108 | - | 903 | - | - |
| Indicated | 347,242 | 0.46 | - | 0.49 | - | - | 1,551 | - | 1,115 | - | - |
| El Morro M&I | 558,406 | 0.49 | - | 0.55 | - | - | 2,659 | - | 2,018 | - | - |
| Amapari | |||||||||||
| Measured | 8,949 | 1.00 | - | - | - | - | 288 | - | - | - | - |
| Indicated | 17,948 | 1.65 | - | - | - | - | 952 | - | - | - | - |
| Amapari M&I | 26,897 | 1.43 | - | - | - | - | 1,240 | - | - | - | - |
| INFERRED RESOURCE STATEMENT AS OF DECEMBER 31, 2009 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Metal Grade | Contained Metal | |||||||||||
| Tonnes 000's |
Gold g/t |
Silver g/t |
Copper % |
Zinc % |
Lead % |
Gold Koz |
Silver Koz |
Copper Mlbs |
Zinc Mlbs |
Lead Mlbs |
||
| Mesquite | 22,804 | 0.49 | - | - | - | - | 357 | - | - | - | - | |
| Cerro San Pedro | ||||||||||||
| Inside Mineral Resource Pit | ||||||||||||
| Oxides | 17,931 | 0.29 | 9.69 | - | - | - | 168 | 5,586 | - | - | - | |
| Sulphides | 20,964 | 0.33 | 8.54 | - | 1.22 | 0.05 | 224 | 5,758 | - | 564 | 22 | |
| Outside Mineral Resource Pit | ||||||||||||
| Oxides | 86,107 | 0.27 | 6.88 | - | - | - | 756 | 19,054 | - | - | - | |
| Sulphides | 210,669 | 0.43 | 8.00 | - | 0.45 | 0.07 | 2,945 | 54,161 | - | 2,073 | 319 | |
| 3,701 | 73,215 | 2,073 | 319 | |||||||||
| Manto Sulphides | 4,470 | 1.98 | 114.5 | - | 6.17 | 1.61 | 285 | 16,456 | - | 608 | 159 | |
| Peak | 1,999 | 4.70 | 5.00 | 0.75 | - | - | 300 | 347 | 33 | - | - | |
| New Afton | 25,200 | 0.54 | 1.70 | 0.66 | - | - | 438 | 1,377 | 367 | - | - | |
| 100% Basis | 30% Basis | |||||||||||
| El Morro | 62,335 | 0.18 | - | 0.34 | - | - | 110 | - | 141 | - | - | |
| Amapari | 17,449 | 2.20 | - | - | - | - | 1,234 | - | - | - | - | |
See Notes to mineral reserves & resources statements for further detail on reserves and resources calculations.
Mineral reserves are contained within measured and indicated mineral resources. Measured and indicated mineral resources that are not mineral reserves do not have demonstrated economic viability. Inferred mineral resources are not known with the same degree of certainty as measured and indicated resources, do not have demonstrated economic viability, and are exclusive of mineral reserves.
1. MINERAL RESERVES
Mineral reserves for the company's mining operations and development projects have been calculated based on the following metal prices and lower cut-off criteria:
| MINERAL PROPERTY | GOLD | SILVER | COPPER | LOWER CUT-OFF |
|---|---|---|---|---|
| $/oz | $/oz | $/lb | ||
| Mesquite | $ 800 |
- | - | 0.21 g/t Au - Oxide reserves |
| 0.41 g/t Au - Sulphide reserves | ||||
| Cerro San Pedro | $ 800 |
$ 12.00 |
- | US$2.58/t NSR |
| Peak | $ 800 |
$ 12.00 |
$ 2.00 |
AU$118 - 152/t NSR |
| New Afton | $ 800 |
$ 12.00 |
$ 2.00 |
US$19/t NSR |
| El Morro | $ 500 |
- | $ 1.25 |
0.30% CuEq |
Mineral reserves have been estimated and reported in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101, or the AusIMM JORC equivalent.
2. MINERAL RESOURCES
Mineral resources for the company's mining operations and development projects have been calculated based on the following metal prices and lower cut-off criteria:
| MINERAL PROPERTY | GOLD | SILVER | COPPER | ZINC | LEAD | LOWER CUT-OFF |
|---|---|---|---|---|---|---|
| $/oz | $/oz | $/lb | $/lb | $/lb | ||
| Mesquite | $ 900 |
- | - | - | - | 0.09 g/t Au - Oxide resources |
| 0.19 g/t Au - Sulphide resources | ||||||
| Cerro San Pedro | $ 900 |
$ 15.00 |
- | $ 1.00 |
$ 0.75 |
0.1 g/t Au - Oxide resources |
| 0.4 g/t AuEq - Sulphide resources | ||||||
| 2.5 g/t AuEq - Manto Sulphide resources | ||||||
| Peak | $ 800 |
$ 12.00 |
$ 2.00 |
$ 0.80 |
$ 0.60 |
A$95/t NSR |
| New Afton | $ 900 |
$ 15.00 |
$ 2.00 |
- | - | 0.4% CuEq - All resources |
| El Morro | $ 500 |
- | $ 1.25 |
- | - | 0.3% CuEq - All resources |
| Amapari | $ 900 |
- | - | - | - | 0.5 - 0.7 g/t Au - Open pit resources |
| 1.4 g/t Au - Underground resources | ||||||
Mineral reserves have been estimated and reported in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101, or the AusIMM JORC equivalent.
3.
Cerro San Pedro mineral resources include measured, indicated and a portion of inferred resources that are contained within a "Mineral Resource Pit" based on metal prices of $900/oz gold, $15.00/oz silver, $1.00/lb zinc and $0.75/lb lead at lower cut-offs of 0.1 g/t Au for oxide mineralization and 0.4 g/t AuEq for sulphide mineralization. Inferred resources also include potentially economic mineralization extending outside the limits of the "Mineral Resource Pit" which is delimited by lower cut-off grade shells of 0.1 g/t Au for oxide mineralization and 0.4 g/t AuEq for sulphide mineralization.
4.
El Morro mineral reserves and resources tonnes and grade are reported on a 100% basis; contained metals are reported on a 30% basis to reflect New Gold's 30% ownership interest in the project.
El Morro mineral reserves and resources have been reported based on a lower grade cut-off of 0.3% copper-equivalent ("EqCu") where EqCu(%) = Cu(%) + 0.592 x Au (g/t) and Cu(%) = % copper, Au(g/t) = grams per tonne gold, and 0.592 represents a constant based on metal prices of $1.25/lb copper and $500/oz gold and average metal recoveries for the deposit.
5.
Figures may not add due to rounding.
QUALIFIED PERSONS
The following table sets out the individuals who are the Qualifed Persons as defned by Canadian National Instrument 43-101 in connection with New Gold's Mineral Reserves and Mineral Resources Statements as of December 31, 2009.
| MINERAL PROPERTY | QUALIFIED PERSON |
|---|---|
| Mesquite | |
| Reserves | Mr. Wayne Valliant, P. Geo., and Principal Geologist for Scott Wilson Roscoe Postle Assoc. |
| Resources | Mr. Richard J. Lambert, P.E. and Principal Mining Consultant for Scott Wilson Roscoe Postle Assoc. |
| Cerro San Pedro | |
| Reserves | Mr. Christopher Moreton, PhD. and P. Geo., and Senior Consulting Geologist for Scott Wilson Roscoe Postle Assoc. |
| Resources | Mr. Richard J. Lambert, P.E., and Principal Mining Consultant for Scott Wilson Roscoe Postle Assoc. |
| Peak | |
| Reserves | Mr. Rex Berthelsen, FAusIMM, CPGeo and Principal Geologist for New Gold Inc. |
| Resources | Mr. Sean Pearce, Member AusIMM, and Manager of Mining for Peak Mine |
| New Afton | |
| Reserves | Mr. Dennis Bergen, P. Eng. and Associate Principal Mining Engineer for Scott Wilson Roscoe Postle Assoc. |
| Resources | Mr. David Rennie, P. Eng. and Principal Geologist for Scott Wilson Roscoe Postle Assoc. |
| El Morro | |
| Reserves | Mr. Richard J. Lambert, P.E. and Principal Mining Consultant for Scott Wilson Roscoe Postle Assoc. |
| Resources | Mr. Barton G. Stone, P. Geo. and Chief Geologist for Pincock, Allen & Holt Inc. |
| Amapari | |
| Resources | Mr. Rex Berthelsen, FAusIMM, CPGeo and Principal Geologist for New Gold Inc. |
CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES
Information concerning the properties and operations of New Gold has been prepared in accordance with Canadian standards under applicable Canadian securities laws, and may not be comparable to similar information for United States companies. The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" used in this presentation are Canadian mining terms as defined in accordance with NI 43-101 under guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, 2005. While the terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" are recognized and required by Canadian regulations, they are not defined terms under standards of the United States Securities and Exchange Commission. Under United States standards, mineralization may not be classified as a "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve calculation is made. As such, certain information contained in this presentation concerning descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the United States Securities and Exchange Commission. An "Inferred Mineral Resource" has a great amount of uncertainty as to its existence and as to its economic and legal feasibility. It cannot be assumed that all or any part of an "Inferred Mineral Resource" will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of Measured or Indicated Resources will ever be converted into Mineral Reserves. Readers are also cautioned not to assume that all or any part of an "Inferred Mineral Resource" exists, or is economically or legally mineable. In addition, the definitions of "Proven Mineral Reserves" and "Probable Mineral Reserves" under CIM standards differ in certain respects from the standards of the United States Securities and Exchange Commission.