Blackwater is one of New Gold’s three exciting future growth projects and is located approximately 160 kilometres south-west of Prince George in south-central British Columbia. The project was acquired by New Gold in June of 2011 through New Gold’s acquisition of Richfield Ventures Corp. (“Richfield”). New Gold looks forward to continuing the exploration of this project with the goal of ultimately bringing it through development and into production.
The Blackwater Project area has been actively explored since the discovery of anomalous concentrations of silver, lead, and zinc in silt samples taken from streams draining the Mt. Davidson area in 1973 by Granges Inc. Historic work includes soil geochemistry, geophysics and reverse circulation and diamond drilling.
Richfield’s work on the Blackwater Gold Project began in 2009 when the company recognized the bulk gold potential on the property. In March 2009 Richfield optioned the Davidson and Dave claims from Silver Quest Resources Ltd. and the Rozek family respectively.
The initial mineral resource estimate for the Blackwater Project was published in March 2011 and was based on 25,263 metres of drilling in 77 holes. An updated mineral resource estimate was published in September 2011 and added an additional 71 holes (24,660 metres) to the March estimate, bringing the total number of core holes to 148 (49,223 metres).
An updated Indicated and Inferred Mineral Resource estimate announced March 7, 2012 represents drilling results through December 2011. It estimated an Indicated Resource of 5.5 million ounces of gold and an Inferred Resource of 2.3 million ounces of gold at a 0.4 gram per tonne cut-off grade.
The Blackwater mineral resource, effective March 31, 2013, is reported within a conceptual pit shell at gold-equivalent cut-off values ranging from 0.3 to 0.4 grams per tonne. The deposit contains Measured and Indicated mineral resources suitable for direct processing of 306 million tonnes at 0.88 grams per tonne gold and 5.8 grams per tonne silver, representing 8.6 million ounces of gold and 57.5 million ounces of silver. In addition, the Measured and Indicated mineral resources suitable for stockpiling and future processing includes 91 million tonnes at 0.30 grams per tonne gold and 4.3 grams per tonne silver, representing 0.9 million ounces of gold and 12.6 million ounces of silver.
This mineral resource estimate is compliant with CIM (as defined at the conclusion of the release) Definition Standards prescribed under National Instrument 43-101 and is based upon a geologic block model that incorporates 286,966 individual assays from 309,516 metres of core from 1,003 drill holes at a nominal drill hole spacing ranging from 25 metres to 50 metres. Assay data density is sufficient to classify the mineral resource at the Measured and Indicated confidence levels as necessary to support the estimation of a mineral reserve. The drill hole database was supported by approximately 80,000 quality assurance/quality control (QA/QC) check assays.