“However, the combination of gold being down by more than $500/oz since we completed the preliminary economic assessment for Blackwater in September of 2012, and our Rainy River project in western Ontario 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. An updated feasibility study for Rainy River remains on schedule for completion in early 2014,” he said.

New Gold will continue to move the Blackwater project through the permitting phase in 2014. The company views the potential of having a fully permitted project as an important and valuable asset. In the current market environment, where there has been significant commodity price volatility, New Gold wants to maximize its flexibility in respect of any future development decisions. The timing of Blackwater development will be driven by market conditions over the coming years.