New Gold’s Rainy River project gets key environmental approval
Canadian company, New Gold is closer than it’s ever been to developing its Rainy River mine in Ontario as the intermediate bullion producer has just received two key environmental approvals for the project.
The Rainy River project is an advanced-stage gold project situated in Richardson Township, approximately 65 kilometers northwest of Fort Frances in Northwestern Ontario. The property has excellent infrastructure, with year-round road access and power lines in close proximity. The project contemplates 21,000 tons per day processing rate from a combination of open pit, underground and stockpiled ore. The project is expected to produce over 225,000 ounces of gold annually.
At least two stages of gold mineralization exist in the Rainy River Gold Project:
Early (low to moderate grade) gold mineralization associated with sulphide (Pyrite-Sphalerite-Chalcopyrite-Galena) stringers and veins and disseminated pyrite in quartz-phyric volcaniclastic rocks and conglomerate; and Late (high-grade) gold mineralization associated with Quartz-Pyrite-Cchalcopyrite-Gold veins and veinlet.
Both styles of gold mineralization have been progressively overprinted by deformation. The gold mineralization is interpreted as a hybrid deposit type consisting of an early gold-rich volcanogenic sulphide mineralization overprinted by shear-hosted mesothermal gold mineralization.
In addition to the gold mineralization, the project also contains nickel, copper and platinum group metals sulphide mineralization associated with a differentiated ultramafic-mafic intrusion. That magmatic-hydrothermal mineralization occurs within the main auriferous zones and crosscuts the volcanogenic sulphide mineralization and the later mesothermal gold mineralization associated with the regional deformation.
The Canadian Environmental Assessment Agency and the Ontario Ministry of Environment and Climate Change separately completed their detailed assessments of the Rainy River project, giving the project their thumbs up, the Vancouver-based company said Friday.
Canada’s Federal government gave its okay earlier this month for the proposed open-pit and underground gold mine, as well as an on-site metal mill.
Rainy River is expected to produce about 325,000 ounces of gold a year, at all-in sustaining costs of $736/ounces over the first nine years, starting in 2017.