New Gold has posted a 62% increase in production for the second quarter of the year.

Production for the quarter stood at 89,919oz compared with 55,633oz produced in the same period in 2009.

New Gold said its sales increased by 56% to 82,402oz from 52,890oz produced in the corresponding period in 2009.

The increase in gold production has been attributed to strong production from its Mesquite mine in the US and its Cerro San Pedro Mine in Mexico.

The company has changed its 2010 full year production forecast from 330,000oz to 360,000oz of gold.