VANCOUVER (miningweekly.com) – Canadian miner New Gold on Tuesday reported that construction of its $1-billion-plus Rainy River project, in Ontario, remains on track to start operations in September, with commercial production expected to follow in November.

“Through the second quarter, our team has both successfully commenced the staged commissioning of our process facility and delivered on our mining plan. As the pit has opened up, our operations team has recently delivered further increases in the mining rate, including several days over 130 000 t/d,” president and CEO Hannes Portmann said in a press release.

New Gold reported that overall earthworks are more than 85% complete and are tracking in line with its updated plan. Rock deliveries for the starter cell of the tailings management facility are scheduled for completion in late August. All key site overhead power lines have been energised and construction of the tailings pipeline corridor has been completed.    

All the key structural components of the process facilities have been finalised and the setting of mechanical equipment and installation of piping, electrical and instrumentation services is close to completion, the company advised.

The primary crusher and conveyor system was successfully commissioned on schedule and the first crush occurred on May 11. Commissioning of the ball mill and semi-autogenous grinding mill have started with completion scheduled for August. The refining portion of the circuit should be ready to start commissioning in July. Dry and wet commissioning of the full process circuit is scheduled for August.

At full production, the mine is expected to generate an average of 325 000 oz/y of gold, during a planned 14-year mine life. In the first nine years of production, Rainy River would be mined as an openpit operation, after which operations will move underground.

New Gold has guided for full-year output of 380 000 oz to 430 000 oz of gold this year, at an all-in sustaining cost of $760/oz to $800/oz.