New Gold extends construction schedule of new Canadian gold mine

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin:0in; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin;} Announcing its financial and operational results for the fourth quarter and year ended 2008, Vancouver-based mining operation New Gold Inc. also said it was delaying construction of its New Afton mine in Canada.   New Gold is an intermediate gold mining company with operating assets in Mexico and Australia and development projects in Canada and Chile. The figures announced today represent the company's first year in production.   New Afton is a project currently under construction in Western Canada. At today's gold and copper prices, the company expects New Afton to be a significant cash flow generator, but in the current economic climate the project construction schedule has been extended with start up expected in the second half of 2012.   ÔÇ£We see sizable opportunity for growth through the development of our New Afton project, and through further consolidation of junior gold producers," said president and chief executive officer Robert Gallagher.   Under the original fast track schedule, operations were to commence in late 2009, ramping up to achieve full production in the second quarter of 2011. With the revised plan, surface construction would resume at the end of 2010 with full production achieved in the second half of 2012. The company said the delayed start up provides additional time to arrange the required capital with initial production more likely being achieved in robust metal markets.   Announcing gold production of 272,046 ounces in 2008, Gallagher said: "Despite the unprecedented economic challenges which unfolded in 2008, New Gold made excellent progress on its strategic objectives while exceeding production targets by 9 percent."   New Gold is forecasting 2009 gold production of between 190,000 and 210,000 ounces. "As we look forward to 2009, we are committed to delivering on our operational targets. We will continue to demonstrate prudent financial management and take the steps necessary to maintain a strong financial position,ÔÇØ Gallagher said.   *┬á┬á┬á┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á┬á┬á┬á *