New Gold Inc. (USA) (NYSEMKT:NGD) Blackwater Test Results Buoys Executives

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Dallas, Texas 12/31/2013 (FINANCIALSTRENDS) – Randall Oliphant, Executive Chairman of New Gold Inc. (USA) (NYSEMKT:NGD) announced on December 12, the positive results which were borne out by the Feasibility Study it had conducted for its Blackwater Gold initiative.

Highlighting the positives from the report, Mr Oliphant has been quoted as saying, “The completion of the Blackwater Feasibility Study is an important milestone for our company. The Project has many great attributes including: its secure jurisdiction, long life, robust production potential, all-in sustaining costs well below industry average, and continued exploration potential. However, the combination of gold being down by over $500 per ounce since we completed the Preliminary Economic Assessment for Blackwater in September of 2012 and our Rainy River project having a more modest capital requirement, results in our primary objective being the advancement of Rainy River. Importantly, Rainy River shares all of Blackwater’s strong project characteristics.”

Buoyed by the positive outcome, New Gold Inc. (USA) (NYSEMKT:NGD) has announced follow up plans of initiating a more detailed study for its another under developed mining property “Rainy River” which is expected to commence in early 2014.”

Outcomes

The evaluator tests and drilling have borne out the fact that this property has a potential to mine close to 60,000 tonnes of ore per day and at this rate of extraction is expected to have a life span of 17 years.  The report also indicates 87 percent of the recoveries would be for gold and 49 percent would be for silver in the life span of the mine. At these extraction rates, it is being estimated that gold production will pan out at 7 million ounces and silver will level out at 30 million ounces. The report has also highlighted that the overall $1.86 billion would be required to operationalize this mine.

Operations

New Gold Inc. (USA) (NYSEMKT:NGD) is a Canadian gold mining firm which is HQ in Vancouver. It boasts of market cap of $2.52 billion and operates mining properties in U.S, Mexico and Australia. In addition to these fully owned firms, it is also holding joint development stakes in copper and gold mining projects in Chile, and other properties within U.S and Mexico. In the past 12 months, the stock has managed to post net sales of $832 million and has recorded net income of $187 million in the same period. It has not paid out any dividends in the past one year.

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Stock Performance

New Gold Inc. (USA) (NYSEMKT:NGD) stock has been struggling to show its investors gains at the markets in the past one year. This downward trend seen in this stock has been mirrored by most other gold mining company stock this year. In the past one month, it has managed to post net loss of 1.18 percent and this further extends to 16.22 per share loss in the past one quarter. This assumes a huge

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 54.5 percent dip in value in trading in the past one year. At close of business yesterday, the stock was trading at $5.01 per share, which translates to a 2.5 percent dip over its prior day close price. At these depreciated prices, the stock price is trading just 7 percent above its prior 52 week low price point of $11.46 per share. Readers should note that the stock has been trading range bound between $4.68 and $11.46 in the past 12 months.

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