New Gold starts up a mine

Article Excerpt

NEW GOLD $9.84 (Toronto symbol NGD; TSINetwork Rating: Speculative) (888-315- 9715; www.newgold.com; Shares outstanding: 461.7 million; Market cap: $4.5 billion; No dividends paid) has started up its fourth mine. The $765- million New Afton gold mine in B.C. processed the first ore through its mill on June 28, 2012. New Gold’s target for commercial production at New Afton, defined as 30 days of operation at 60% capacity (or 6,600 tonnes per day) remains August 2012. New Afton should produce an average of 85,000 ounces of gold and 75 million pounds of copper annually over its 12-year life. There is still room to expand the mine’s reserves and increase its production through exploration drilling. New Gold is still a buy. buy…