The El Morro copper-gold project is owned by New Gold (30%) and Goldcorp (70%).
New Gold’s share of proven and probable reserves is 2.5 million ounces of gold and 1.8 billion pounds of copper with an additional 1.3 million ounces of gold and 0.6 billion pounds of copper in the inferred resource category.
Goldcorp will conduct condemnation drilling, focussing on in-fill drilling and sampling for metallurgical and geo-technical data.
An updated feasibility study is expected in the third quarter this year, along with revised capital and operating cost estimates and refinements to the mine plan and equipment requirements.
New Gold president and CEO Robert Gallagher said the El Morro project in Chile was a world-class project that had the potential for significant positive impact on the firm’s cash flow.