New Gold up on Blackwater drill results

New Gold (NGT-T, NGD-X) touched a new 52-week high, after posting strong drill results from its Blackwater gold project in central B.C. 

On Aug. 9, New Gold released 12 additional holes and four metallurgical holes. Highlights include hole 176 returning 35 metres grading 2.37 grams gold per tonne; hole 179 carrying 278 metres of 2.78 grams; and hole 180 cutting 150 metres of 1.41 grams gold. 

The latest results are part of the company’s drill program to identify the edges of the deposit and complete infill drilling in the core of the established resource, Mark Petersen, the company’s vice-president of exploration, said in a press release. 

 “We are excited about the results, in particular the higher grades seen in holes 176 and 179, and the extension of significant gold grades to the southwest as identified in hole 180,” he said. 

New Gold has budgeted $20 million to drill 40,000 to 50,000 metres, or 100 holes, during the latter half of the year. There are five rigs turning at Blackwater, and the company plans to add another three to five drills by mid-November. 

The program will focus on both the wholly owned southern and 75%-owned northern portions of the project, with Silver Quest Resources (SSO-T, SSRI-Q) holding the remainder. 

New Gold acquired the Blackwater project after it bought out Richfield Ventures in June. 

An initial resource completed in March shows the project has 53.5 million indicated tonnes grading 1.06 grams gold for 1.8 million oz. gold, plus 75.5 million inferred tonnes at 0.96 gram gold for another 2.3 million oz. The deposit is still open at depth and laterally. 

New Gold has completed assays for another 66 holes since the resource estimate. 

On the latest drill results, the company shares in Toronto climbed 56¢ to $10.75 on 7.6 million shares traded. On Aug. 10, the stock hit a 52-week high of $11.75, before closing at $11.71 apiece on 4.3 million shares.