Professional Documents
Culture Documents
Corporate Overview
Delivering
on Growth
New Gold – Analyst Day
January 25, 2010
15 Minute Break
15 Minute Break
Group Lunch
CAUTIONARY NOTE TO U.S. READERS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES
Information concerning the properties and operations of New Gold has been prepared in accordance with Canadian standards under applicable Canadian securities laws, and may not be
comparable to similar information for United States companies. The terms “Mineral Resource”, “Measured Mineral Resource”, “Indicated Mineral Resource” and “Inferred Mineral
Resource” used in this presentation are Canadian mining terms as defined in accordance with NI 43-101 under guidelines set out in the Canadian Institute of Mining, Metallurgy and
Petroleum (“CIM”) Standards on Mineral Resources and Mineral Reserves adopted by the CIM Council on December 11, 2005. While the terms “Mineral Resource”, “Measured Mineral
Resource”, “Indicated Mineral Resource” and “Inferred Mineral Resource” are recognized and required by Canadian regulations, they are not defined terms under standards of the United
States Securities and Exchange Commission. Under United States standards, mineralization may not be classified as a “reserve” unless the determination has been made that the
mineralization could be economically and legally produced or extracted at the time the reserve calculation is made. As such, certain information contained in this presentation concerning
descriptions of mineralization and resources under Canadian standards is not comparable to similar information made public by United States companies subject to the reporting and
disclosure requirements of the United States Securities and Exchange Commission. An “Inferred Mineral Resource” has a great amount of uncertainty as to its existence and as to its
economic and legal feasibility. It cannot be assumed that all or any part of an “Inferred Mineral Resource” will ever be upgraded to a higher category. Under Canadian rules, estimates of
Inferred Mineral Resources may not form the basis of feasibility or other economic studies. Readers are cautioned not to assume that all or any part of Measured or Indicated Resources
will ever be converted into Mineral Reserves. Readers are also cautioned not to assume that all or any part of an “Inferred Mineral Resource” exists, or is economically or legally mineable.
In addition, the definitions of “Proven Mineral Reserves” and “Probable Mineral Reserves” under CIM standards differ in certain respects from the standards of the United States Securities
and Exchange Commission.
Disciplined Growth
• Completed 3-way business
combination June 2008
• Completed combination with
Western Goldfields June 2009
• Developing two solid organic
growth assets
• Pursuing accretive external growth
opportunities
BOARD OF DIRECTORS
James Estey, Director
• Cash and Long-term Investments not reflective of January 2010 sale of C$83 million in face value Asset
Backed Notes for Proceeds of C$50 million
1 Cash position as of December 31, 2009 including $9 million of restricted cash.
2 Represents approximation of fair value of Asset Backed Notes investment at December 31, 2009. Face value of Asset Backed Notes investment was C$104
million at December 31, 2009.
3 Debt position as of December 31, 2009.
NOTE: On January 13, 2010, Barrick filed a Statement of Claim related to the El Morro Transaction and New Gold’s exercise of the Right of First
Refusal. New Gold believes the claim is without merit and intends to respond to this action using all available legal avenues.
1 Both the Xstrata weighted average cost of capital estimate and the US 7-year Treasury rate are sourced from Bloomberg as at January 7, 2010.
Location Chile
Future Upside
Q4 GOLD PRODUCTION (000s OUNCES) Q4 TOTAL CASH COST PER OUNCE (1)
2009 GOLD PRODUCTION (000s OUNCES) 2009 TOTAL CASH COST PER OUNCE (1)
9.0
1.3 8.2
8.0
7.4
7.0
0.5
6.0
5.0
12/31/2008 Ounces Mined 2009 Ounces Added 2009 12/31/2009
• Updated gold prices at Mesquite, Cerro San Pedro and Peak Mines – $800 per ounce
6.0
0.0
YE 2008 YE 2009
4.0 10%
CERRO SAN PEDRO
2.0
2.0
1.3 1.4
0.0
1.0 YE 2008 YE 2009
11%
0.0
YE 2008 YE 2009 • New Afton gold reserves – 1.05 million ounces
0.0
YE 2008 YE 2009
1 Refer to Appendix for detailed disclosure on Reserve and Resource calculations.
1 Refer to Appendix for detailed disclosure on Reserve and Resource calculations. Measured and Indicated Resources inclusive of Reserves.
2 Represents New Gold‟s 30% attributable share of Reserves and Resources.
Location Mexico
Location Australia
Mine Type Underground
Gold (k oz) 570
Reserves1
Copper (m lbs) 67
Gold (k oz) 850
Resources1,2
Copper (m lbs) 127
Estimated Mine Life ~ 8 years
Gold Production ‘10 Guidance oz3 90k-100k
Total Cash Cost/oz ‘10 Guidance4 $360-$380
Location Canada
400 $400
300 $300
200 $200
63% Decrease in
Total Cash Costs
100 $100
0 $0
5
2009A 2010E 2011E 2012E 2013E
Gold Production Total Cash Costs
1 Source: Available consensus research estimates.
2 By-product cash cost based on declining consensus silver and copper price with 2013 prices of $15.00/oz and $2.25/lb for silver and copper, respectively.
3 2009 production shown for the period of ownership of Western Goldfields.
4 Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost.
5 2013 production based on 2 equity research analyst estimates, none of which include production from El Morro.
$350
~ 158% Increase in
Operating Margin
$300
Operating Margin (US$mm)
$250
$200
$150
$100
$50
$0
4
2009E 2010E 2011E 2012E 2013E
1 Source: Available consensus research estimates.
2 Based on declining consensus gold price from $959/oz in 2009 to $900/oz in 2013.
3 Operating Margin is a non-GAAP measure calculated as production multiplied by the assumed gold price less cash costs net of by-product credits.
4 2013 production based on 2 equity research analyst estimates, none of which include production from El Morro.
Refer to Cautionary Statements regarding Forward Looking Statements and Total Cash Cost.
200 $300
100 $0
50 ($150)
0 ($300)
$2.25 $2.75 $3.25 $3.75 $4.25
Operating Margin Total Cash Costs
1 Based on declining consensus gold price from $959/oz in 2009 to $900/oz in 2013 and a declining consensus copper price from $2.29/lb in 2009 to $2.25/lb in 2013
2 Assumes an average of 75 million pounds of copper sales per year from New Afton and 15 million pounds of copper sales per year from Peak Mines. It does not include any copper
sales from El Morro.
3 Refer to note regarding Total Cash Costs in Cautionary Statements.
14%
(2%)
(6%) (7%) (8%)3 (8%) (9%)
(30%)
(63%)
94% share price appreciation since announcement of merger with Western Goldfields in March 2009
NAV multiple increased from 0.7x to 1.0x over the same time period
FUTURE UPSIDE
Have sold a total of C$139 million in Face Value Asset Backed Notes for proceeds of C$81 million (58% of
Face Value realized) – C$21 million Face Value remaining largely illiquid
New Afton development on schedule, expect to commence production second half of 2012
Successfully exceeded 2009 guidance of 270,000 to 300,00 oz of gold production at cash cost of
$470 to $490 per oz, net of by-product sales for the period of ownership
Production growth over the next four years with current portfolio of assets
Enhanced market presence with increased analyst coverage and trading liquidity
Proven Board of Directors and management team with track record of delivering on strategic
objectives
Delivering
on Growth
New Gold – Analyst Day
January 25, 2010
15 Minute Break
15 Minute Break
Group Lunch
US dollar millions
300
272
250 238
200
169
150
100
50 38
27
4
0
Cash & El Morro Funding Mesquite Debt Convertible Senior Notes Total
Restricted Cash Debenture
Debt
400
43
350
103
300 (41)
272
(26)
250 (22)
29
200 186
150
100
50
0
New Gold Merger - Financing - ABCP Debt Purchase of Other (1) New Gold
12/31/08 Western September Settlement & Repayments Senior 12/31/09
Goldfields 2009 Sale 2009 Secured Notes
06/01/08
(1) Includes all capital expenditures during the year 2009 and results of operations.
US dollar millions
300
225
200
100
50
0
Up-front
payment
-100
100% vs.
70% Carry
-200
(225)
-300
1 2
• Convertible Debentures
• $27 million remaining on Term Loan with LIBOR + 4.25% annual interest rate
• New Gold required to maintain gold hedges until loan is repaid in full
• Predecessor company Western Goldfields Inc. put Term Loan in place to fund
development of the Mesquite mine
• At December 31, 2009, 330,000 ounces remained hedged at $801 per ounce
• Full loan repayment would provide New Gold with flexibility to monetize hedge
• In early 2009 the market for Asset Backed Notes was illiquid
• At September 30, 2009, New Gold held a total of C$160.0 million in face value Asset
Backed Notes
• December 23, 2009 – sold C$56.3 million of face value notes for proceeds of C$31.2
million (55% of face value)
• January 2010 – sold C$83.0 million of face value notes for proceeds of C$49.9 million
(60% of face value)
Mesquite Mine
Jim Currie – Chief Operating Officer
Mesquite Mine
GOLD PRODUCTION (000s OUNCES) TOTAL CASH COST PER OUNCE (1)
200 $800
150 596
150 $600 508
108
38% 18%
100 $400
50 $200
0 $0
• During 2009 Mesquite produced and sold 150koz and 144koz of gold, respectively
• Total cash cost per ounce(1) for the year of $596 per ounce
• Record fourth quarter gold production and sales of 61koz and 56koz of gold, respectively
• Total cash cost per ounce(1) for the fourth quarter of $551 per ounce
• Record annual and quarterly production since mine re-start in early 2008
• Ore tons loaded to the pad increased to 13.1 million tonnes in 2009 from 8.1 million
tonnes in 2008
• Total tonnes mined increased to 54.4 million in 2009 from 49.4 million in 2008
• Current „material moved mining cap‟ of 54.4 million tonnes (60 million tons)
reached on December 23, 2009 – limit set by current permit
• North wall slope angle lowered to improve slope stability factor of safety
• Truck simulator purchased and all operators have received two phases of training
ORGANIZATIONAL CHART
General Manager
Cory Atiyeh
Director of Mineral
Processing
Tony Casagranda
Mining 114
Surface and Maintenance 50
Technical Services 15
Processing 51
Administration 11
Various Contractors 25
Total Site 266
5.0
4.0
0.75 3.14
3.0
2.63
(0.24)
2.0
1.0
0.0
12/31/2008 Ounces Mined 2009 Ounces Added 2009 12/31/2009
Achieved to Date
Fully implemented Loss Prevention Program
Fully implemented Employee Health and Wellness
Program
498 days without a Lost Time Injury through
12/31/09
Total Reportable Injury Rate below national
average for both mining and general industry
Occupational Safety & Health Administration
18002 compliance effort initiated
All employees are emergency preparedness
trained
Future Deliverables
Continued reduction of accident/injury rate
Continued development/expansion of wellness
activities
Occupational Safety & Health Administration
18002 compliant in 2010
3.0
3.1 3.1 3.1 3.1 3.1 3.1
2.5 2.64
1.95
2.0
1.5
1.0
0.5
0.0
Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09
Note: Incident Rate calculated per MSHA standards. IR= incidents per 200,000 hrs worked.
Achieved to Date
Compliance with local regulations
• California has five levels of government: Federal, State, Regional, County, Local
• Imperial County is lead agency on majority of permits
Routine air monitoring conducted at four stations, operation is well below regulatory
limits
36 environmental permits or certificates and reporting mandates
• 1,602 permit stipulations
Future Deliverables
Energy & climate change – evaluating energy consumption, identified areas for
targeted improvements and began evaluation of greenhouse gas emissions
Air - evaluating dust suppression technologies in addition to routine roadway
treatments due to arid climate
• Evaluating offsite paving projects to acquire needed particular matter offsets –
long term benefits to the entire region.
Reclamation – re-sloping all rock dumps as they become inactive
COMMUNITY AFFAIRS
Achieved to Date
Earned well-respected profile within the region
Retained local public relations firm
• Ensure incidents, inspection information and general events are factually
communicated
VIP tours given regularly to regional decision makers
Presentations to community organizations
Maintain open communication and transparency
GOLD PRODUCTION (000s OUNCES) TOTAL CASH COST PER OUNCE (1)
1. Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.
2010 Objectives:
1. Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.
150 2.0
1.5
96 1.5
100 85 1.1
13% 1.0 36%
50
0.5
0 0.0
FY 2008 FY 2009 FY 2008 FY 2009
FY 2008 FY 2009
• During 2009 CSP produced and sold 96koz and 93koz of gold, respectively
• Total cash cost per ounce(1) net of by-products for the year of $405 per ounce
• Fourth quarter gold production and sales of 26koz and 24koz of gold, respectively
• Total cash cost per ounce(1) net of by-products for the fourth quarter of $438 per ounce
• Reduced strip ratio from budgeted 2.1 to 1.4 with improved mine planning
• Mined record 11.9 million tonnes of ore and 16.8 million tonnes of waste
• Total tonnes moved increased to 28.7 million in 2009 from 23.0 million in 2008
• Met and exceeded guidance for gold and silver production, respectively despite two
temporary shutdowns during the year – H1N1 (May) and Environmental Permit
(November – December)
• Improved collection and use of rainfall water for processing and reducing consumption of
expensive ground water
ORGANIZATIONAL CHART
General Director
Jorge Mendizábal
General Manager
Juan Guerrero
Safety & Environmental Finance & Human Mine Process Construction In-House
Processes of Coordinator Administration Resources Manager Manager Coordinator Legal
support Manager Manager Coordinator Counsel
Rogelio Muñoz J. Jorge Gerardo Joel Flores
Jesús Castro Juan Carlos Mario A. Gutierrez Garcia Luis Rodolfo
Chavez Rodríguez Rodriguez
2 3
1.4 2.3
1.3
2 1.7
1 11% 33%
1
0 0
YE 2008 YE 2009 YE 2008 YE 2009
0 0
YE 2008 YE 2009 YE 2008 YE 2009
1.0 (0.17)
0.5
0.0
12/31/2008 Ounces Mined 2009 Ounces Added 2009 12/31/2009
2008 2009 2008 2009 2008 2009 2009 2009 2008 2009 2008 2009 2009 2009
Tonnes Tonnes Gold Gold Silver Silver Zinc(2) Lead(2) Gold Gold Silver Silver Zinc(2) Lead(2)
Classification (Mt) (Mt) (g/t) (g/t) (g/t) (g/t) (%) (%) (Moz) (Moz) (Moz) (Moz) (Mlbs) (Mlbs)
P&P
Reserves 71.7 78.2 0.55 0.56 22.32 20.77 - - 1.27 1.41 51.4 52.2 - -
Total M&I
Resources
Oxides 96.5 92.1 0.54 0.46 20.40 17.38 - - 1.69 1.36 63.4 51.5 - -
Sulphides - 61.0 - 0.46 - 13.42 0.74 0.15 - 0.90 - 26.3 992 203
Inferred
Resources
Oxides 1.7 104.0 0.47 0.28 24.10 7.37 - - - 0.90 1.3 24.6 - -
Sulphides - 231.6 - 0.43 - 8.05 0.52 0.07 - 3.17 59.9 2,637 341
Manto
Sulphides - 4.5 - 1.98 - 114.5 6.17 1.61 - 0.29 16.5 608 159
Achieved to Date
Winners of two “cascos de plata” for best results
in safety in the mining industry in México – 2007
and 2008
Zero Lost Time Accidents in 1,116 days,
equivalent to 3.6 million man-hours
Decrease of total accidents from 15 in 2008 to 9
in 2009
Policy of zero tolerances and focus on operative
discipline
Future Deliverables
Continue to work on record of zero Lost Time
accidents
Safe Industry Certification (safety team)
3.0 3.1
3.1 3.1 3.1 3.1
2.5 2.24
2.1
2.0
1.5
1.04
1.0
0.59
0.5
0.49
0.0
2008 Q1-09 Q2-09 Q3-09 Q4-09
Note: Incident Rate calculated per MSHA standards. IR= incidents per 200,000 hrs worked.
Achieved to Date
Maintained legal compliance:
• 100% compliance with the State Government Technical Committee requirements and conditions
• 100% compliance with all SEMARNAT environmental permit requirements and conditions
• Presentation of a new Environmental Impact Statement for all CSP operational phases and closure
ISO 14001 certification compliant
Continuous air quality monitoring conducted at five stations - all operational emissions are below
maximum allowable limits
Constructed new weather station
Over 79,000 plants and trees growing in nursery and over five hectares re-forested to date
Future Deliverables
Clean Industry certification and Technical Committee audit compliance
Obtain a new environmental permit from SEMARNAT
Official Certification of the Residue Handling Plan
Reduce the consumption of ground water through the use of treated wastewater
Achieved to Date
Approximately $500,000 was invested in public works and projects for the
community, including restoration of Cerro de San Pedro church
Providing free medical service to the neighboring communities
Over 50% of the workforce is from the neighboring communities
Sponsor of multiple educational and cultural events for the town of Cerro de San
Pedro and neighboring communities
150 2.0
1.5 1.4 – 1.6
96 95 - 105 1.5
100
4% 1.0
50 0.5
0 0.0
2010 Objectives:
• Resolve ongoing legal issues and establish permanent long-term
solution
• Continue focus on reducing strip ratio, improving leach
recoveries, and optimizing mine plans
• Optimize reagent application to increase Au and Ag recovery and
lower unit costs
• Continue cost savings initiatives through strategic negotiations
with all suppliers and contractors
1. Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.
150 20.0
15.6
100 93 15.0
100
10.0 8.2
90%
50
7% 5.0
0 0.0
FY 2008 FY 2009 FY 2008 FY 2009
FY 2008 FY 2009
• During 2009 Peak produced and sold 93koz and 88koz of gold, respectively
• Total cash cost per ounce(1) for the year of $335 per ounce, net of by-product sales
• Fourth quarter gold production and sales of 25koz and 26koz of gold, respectively
• Total cash cost per ounce(1) for the fourth quarter of $339 per ounce, net of by-product
sales
ORGANIZATIONAL CHART
General Manager
Peter Lloyd
0 0
YE 2008 YE 2009 YE 2008 YE 2009
0.16 0.57
0.51
0.5
(0.10)
0.0
12/31/2008 Ounces Mined 2009 Ounces Added 2009 12/31/2009
2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
Tonnes Tonnes Gold Gold Copper Copper Gold Gold Copper Copper
Classification (Mt) (Mt) (g/t) (g/t) (%) (%) (Moz) (Moz) (Mlbs) (Mlbs)
Proven and
Probable
Reserves 3.6 3.8 4.4 4.7 0.96 0.80 0.51 0.57 76 67
Total
Measured and
Indicated
Resources 6.1 6.1 4.3 4.4 1.01 0.95 0.85 0.85 136 127
Inferred
Mineral
Resources 2.7 2.0 4.5 4.7 0.90 0.75 0.39 0.30 52 33
Achieved to Date
Increased hazard reporting by employees from 2008 to
2009
Achieved 95% close out rate for corrective preventative
actions
Continued to reduce Lost Time Injury Severity Rate year on
year
Implemented Peak Gold Mines Good Health Program
Completed implementation of InControl event reporting and
action tracking system
Future Deliverables
Continue to work towards zero Lost Time injuries
Continue to be a socially responsible employer
Occupational Safety & Health Administration 18001
compliant or better
Increase (double) Safe Act Observations performed in
operating areas
3.5
3.0 3.1
3.1 3.1 3.1 3.1 3.1
2.5 2.4
2.0
1.5
1.2 1.1
1.0 1.0
1.0 1.1
0.5
0.0
Q3-08 Q4-08 Q1-09 Q2-09 Q3-09 Q4-09
Note: Incident Rate calculated per MSHA standards. IR= incidents per 200,000 hrs worked.
Achieved to Date
Maintained legal compliance
• Received development consents for batch plant additions, cyanide system and
oxygen plant
• Completed Annual Environmental Management Return
Routine air, noise and vibration monitoring conducted and operation remains below
regulatory limits
Zero cyanide related fauna deaths
Established compliance with Dangerous Goods Transport code for copper
concentrate
Upgraded access and presentation of the Golden Walk (Historical Mining Areas)
adjacent to the Peak Offices
Future Deliverables
Submit new Mine Operations Plan (MOP) and renew Environmental Protection
License
Complete predicative modeling for blast vibration
Commence progressive rehabilitation of historical sites (Queen Bee and Occidental)
Conduct Life of Tails Dam study that includes annual filling plan and options for
extended life
COMMUNITY AFFAIRS
Achieved to Date
Maintain reputation as socially responsible business within the region
Support for local tour bus operator involving tours of Peak mine site
Enterprise Facilitator employed, trained and contributing to business in town
Sustainability Report completed and annual Community Consultation Meeting held
Peak Gold Mine Open Day to be held October 17th
Maintain open communication and transparency
Urban Landcare group formed in town
150 18.0
93 90 - 100 17.0
100 15.0 – 17.0
16.0 15.6
50
15.0
0 14.0
FY 2009 FY 2010 FY 2009 FY 2010
2010 Objectives:
• Perseverance Zone D provides higher grade feed to the mill
• Construction of a conventional flotation circuit in the mill to replace
column flotation
• Development of a 4.5m diameter ventilation raise from surface to
Perseverance Zone D
• Increase in near mine exploration to continue reserve replacement
1. Refer to note in Cautionary Statement regarding Forward Looking Statements and Total Cash Cost.
ORGANIZATIONAL CHART
VP Operations
Canada
Ron Allum
Pebble
Cassiar
Ekati
New Afton
Resolution Jeffrey
Bingham Canyon
San Manuel Henderson Oyu Tolgoi LEGEND
Questa Bell
Past Producers
Several Projects And
Mines In China Producers
Development Projects
Didipio
Santo Thomas II
Grasberg Ok Tedi
Argyle Wafi
King Shabani
Debswana Mines Palabora
Olympic Dam Northparkes E26
Kimberley Mines Cullihan And E48
Chuquicamata Mt Keith
Finsch
Salvador Koffiefontain Ridgeway Deeps
Andina And Cadia East
El Teniente Mines
Mt Lyall
0
Q1-09 Q2-09 Q3-09 Q4-09
• Capital spent on New Afton through December 31, 2009 of $218 million with ~$410
million remaining
(1) Both Co-product and By-product cash costs calculated using long-term gold and copper prices of $850/oz and $2.00/lb, respectively.
(2) New Gold will file a new 43-101 Technical Report within 45 days.
1,500 2,000
1,483 1,535
959 993 1,500
1,000
3.5% 1,000 3.5%
500
500
0 0
YE 2008 YE 2009 YE 2008 YE 2009
2008 2009 2008 2009 2008 2009 2008 2009 2008 2009
Tonnes Tonnes Copper Copper Gold Gold Copper Copper Gold Gold
Classification (Mt) (Mt) (%) (%) (g/t) (g/t) (Mlbs) (Mlbs) (Moz) (Moz)
Proven and
Probable Reserves 44.4 47.4 0.98 0.95 0.72 0.69 959 993 1.03 1.05
Achieved to Date
Functioning Joint Employee/Management Safety
Committee
Reduced AIFR from 6.95 to 3.69 during 2009
Mine Rescue Team established and earned top
award at Provincial Mine Rescue Competition
Gap analysis completed on Health Safety &
Reclamation Code for Mines in British Columbia
Draft Completed on Site Safety Manual
Future Deliverables
Continue to work towards zero Injuries
Compliance in all aspects of the Health Safety &
Reclamation Code for Mines in British Columbia
Institute internal safety audit standards
8.0
6.7 6.8
7.0 6.5
6.0
4.8
5.0
4.0
3.2
3.0
2.0
1.0
0.0
Q4-08 Q1-09 Q2-09 Q3-09 Q4-09
New Afton
Achieved to Date
Compliance with local regulations
No externally reportable environmental incidents during 2009
Compliance with British Columbia regulations
Installed bat and bird habitats
Cleaned up historical PCB contamination
Joined the BC Hydro Powersmart Initiative
Future Deliverables
Adoption of the New Gold Health Safety & Environmental Standards. First step in
integrating an ISO 14001 Emergency Monitoring System into New Afton
Achievement of permitting obligations on schedule
Reduced reliance on external consultants by performing monitoring and reporting
duties in-house
Compilation of a site-wide Aspects and Impacts register to direct future management
requirements
COMMUNITY AFFAIRS
• Worked successfully with the local bands following the requirements under the
Participation agreement
• Provided Educational Scholarships to three First Nations students from the two
local bands; also provided Educational Scholarships to children of employees who
were pursuing post secondary education
• Assisted the aggregate business at one of the bands develop a good working model
for business development and operation. This included a site tour to another
successfully operating aggregate pit, work with our Finance Manager to organize
books and record-keeping and work with our Materials Manager to develop sound
costing methods
• Held a well attended Family day for employee‟s
and contractors families in July. Included
underground and surface tours and equipment
demonstrations
• Met with various business groups in Kamloops to
build awareness and information; included
Mayors Office and Chamber of Commerce
Development schedule:
• Complete Conveyor Decline and Access Decline to the lowest levels of the mine
providing two means of access from all areas
• 805 meters of intake and exhaust raise boring and lining establishing the basic
ventilation flows for future production
Capital Expenditures:
Exploration Update
Mark Petersen– Vice President Exploration
El Morro Overview
La Fortuna Deposit
Contained Metals
Reserves 100% Basis 30% Basis
Tonnes Copper Gold Copper Gold
Classification
000’s (%) (g/t) (Mlbs) (Moz)
Proven 208,473 0.66 0.53 909 1.06
Probable 241,761 0.50 0.41 806 0.95
Total P&P 450,234 0.58 0.46
www.newgold.com 1,715AMEX US: NGD
TSX/NYSE 2.01 94
El Morro Overview
El Morro Deposit
+
+ +
+
0 – 76 m Leached Cap 36 m @ 0.512g/t+ Au+
76 – 152 m Secondary +
0 250
www.newgold.com
meters
TSX/NYSE AMEX US: NGD 95
Cerro San Pedro Sulphide 2009 Results
2009 Highlights
• Completed 1st pass drilling program targeting Au-Ag-Zn-Pb sulphide mineralization extending from bottom of
current open pit
29 core holes totaling 16,829 meters
• New geologic model and resource estimate for Year-end 2009 Reserves & Resources
• Impact:
0.57 Moz Au, 14 Moz Ag, 1.0 Blbs Zn, 0.2 Blbs Pb added to M&I
3.50 Moz Au, 76 Moz Ag, 3.2 Blbs Zn, 0.5 Blbs Pb added to Inferred
Tonnes Gold Silver Zinc Lead GoldEq(1) Gold Silver Zinc Lead
Classification (Mt) (g/t) (g/t) (%) (%) (g/t) (Moz) (Moz) (Mlbs) (Mlbs)
Measured 18.7 0.53 17.10 0.80 0.19 1.54 0.32 10.3 332 79
Indicated 42.3 0.42 11.79 0.71 0.13 1.24 0.58 16.0 660 123
Total M&I 61.0 0.46 13.42 0.74 0.15 1.33 0.90 26.3 992 203
Inferred Resources
Porphyry Sulphides 231.6 0.43 8.05 0.52 0.07 0.99 3.17 59.9 2,637 341
Manto Sulphides 4.5 1.98 114.5 6.17 1.61 9.51 0.29 16.5 608 159
3.46 76.4 3,245 500
1) Refer to mineral resource notes for metal price assumptions used for GoldEq grade calculation
Reserve Pit
Resource Pit
Manto Sulphides
@ > 2.5 g/t AuEq
Heap Leach
Oxides
@ > 0.1 g/t Au
Poryhyry
Sulphides
@ > 0.4 g/t AuEq
1,500 meters
E-W Section
Reserve Pit INAH
Boundary
Resource Pit
Heap Leach
Poryhyry Oxides
Sulphides @ > 0.1 g/t Au
@ > 0.4 g/t AuEq
2010 Program
• 20,000 meter infill/delineation drilling program to upgrade and expand sulphide resource in
second half of 2010
2009 Highlights
Mine Extensions
• Converted 59koz gold & 9Mlbs copper to Ore Reserves
• Replaced 2009 production and added 12koz of gold to reserves
• Extension of New Occidental down plunge
Mine Corridor
• Jubilee: Intersected 8m @ 2.69 g/t Au, 5.26% Cu, 37.5 g/t Ag
• Great Cobar: New target defined below historic Great Cobar mine
Best previous intersection 16m of 5.65% Cu, 0.79 g/t Au
• Fortitude SE: MIMDAS deep geophysical survey completed
New drill targets identified along 4 km trend extending from Perseverance
Regional
• Positive results from 3 out of 4 drill targets tested - Follow-up planned for 2010
• Norma Vale: 5m @ 0.13 g/t Au, 0.20% Cu, 0.46%
• Continued generation of new exploration targets along Cobar regional trend
Fortitude
New
Chesney
Cobar Great
Deeps
Deeps Cobar
Comstock
Deeps
Zone
D
Peak
Perseverance New
Fortitude SE Chesney Cobar
New Great
Occidental Cobar
N
S 11 kilometers N
www.newgold.com TSX/NYSE AMEX US: NGD 101
Peak Mines Overview (cont‟d)
Exploration Targets
2010 Outlook
• Mine Corridor: Ongoing drilling at Jubilee, Great Cobar, first-pass drilling at Fortitude Southeast,
Comstock Deeps and Fort Bourke North
• Regional: Follow-up at Norma Vale, Mafeesh, Rookery South, Rookery East, Rookery Fault,
Newey, Nymagee and other targets
C-Zone Resource
C-Zone
Looking SW Looking NE
Closing Remarks
Randall Oliphant – Executive Chairman
Delivering on Growth
Disciplined Growth
• Successfully combined four junior
gold companies over the last 18
months
• Management and Board with track
record of building companies and
creating shareholder value
• Focus on opportunities that will
create a better New Gold
Appendix
Reserves and Resource Notes
Mineral reserves are contained within measured and indicated mineral resources. Measured and indicated mineral resources that are not mineral
reserves do not have demonstrated economic viability. Inferred mineral resources are not known with the same degree of certainty as measured and
indicated resources, do not have demonstrated economic viability, and are exclusive of mineral reserves.
1) Mineral Reserves for the company’s mining operations and development projects have been calculated based on the following metal prices and
lower cut-off criteria:
Mineral Property Gold (US$/oz) Silver (US$/oz) Copper (US$/lb) Lower Cut-off
2) Mineral Resources for the company’s mining operations and development projects have been calculated based on the following metal prices and
lower cut-off criteria:
Mineral Property Gold Silver Copper Zinc Lead Lower Cut-off
(US$/oz) (US$/oz) (US$/lb) (US$/lb) (US$/lb)
Cerro San Pedro $900 $15.00 - $1.00 $0.75 0.1g/t Au – Oxide resources
0.4g/t AuEq – Sulphide resources
2.5g/t AuEq – High grade manto resources
Peak Mines $800 $12.00 $2.00 $0.80 $0.60 A$95/t NSR
Mineral resources have been estimated and reported in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum
and National Instrument 43-101, or the AusIMM JORC equivalent.
Cerro San Pedro mineral resources include measured, indicated and a portion of inferred resources that are contained within a “Mineral Resource
Pit” based on metal prices of $900/oz gold, $15.00/oz silver, $1.00/lb zinc and $0.75/lb lead at lower cut-offs of 0.1 g/t Au for oxide mineralization and
0.4 g/t AuEq for sulphide mineralization. Inferred resources also include potentially economic mineralization extending outside the limits of the
“Mineral Resource Pit” which is delimited by lower cut-off grade shells of 0.1 g/t Au for oxide mineralization and 0.4 g/t AuEq for sulphide
mineralization.
4) El Morro
El Morro mineral reserve and resources tonnes and grade are reported on a 100% basis; contained metals are reported on a 30% basis to reflect New
Gold’s 30% ownership interest in the project.
El Morro mineral reserves and resources have been reported based on cut-off of 0.3% copper-equivalent (“EqCu”) where
EqCu(%) = Cu(%) + 0.592 x Au (g/t) and Cu(%) = percent copper, Au(g/t) = grams per tonne gold, and 0.592 represents a constant based
on metal prices of $1.25/lb copper and $500/oz gold and average metal recoveries for the deposit.
4) Qualified Persons
The following table sets out the individuals who are the Qualified Persons as defined by Canadian National Instrument 43-101 in connection with
New Gold’s Mineral Reserve and Mineral Resource Statements as of December 31, 2009.
Mesquite
Reserves Mr. Hubert Schimann, P.Eng. and Corporate Mining Engineer for New Gold Inc.
Resources Mr. Richard J. Lambert, P.E. and currently Principal Mining Consultant for Scott Wilson Roscoe Postle Assoc.
Cerro San Pedro
Reserves Mr. Stuart Collins, P.E. and Principal Mining Consultant for Scott Wilson Roscoe Postle & Assoc.
Resources Mr. Rex Berthelsen, FAusIMM, CPGeo and Principal Geologist for New Gold Inc.
Peak Mines
Reserves Mr. Sean Pearce, AusIMM, Manager Mining for Peak Gold Mines Pty. Ltd.
Resources Mr. Rex Berthelsen, FAusIMM, CPGeo and Principal Geologist for New Gold Inc.
New Afton
Reserves Mr. Dennis Bergen, P.Eng. and Associate Principal Mining Engineer for Scott Wilson Roscoe Postle & Assoc.
Resources Mr. David Rennie, P. Eng. and Principal Geologist for Scott Wilson Roscoe Postle Assoc.
El Morro
Reserves Mr. Richard J. Lambert, P.E. and currently Principal Mining Consultant for Scott Wilson Roscoe Postle Assoc.
(formerly Principal Mining Engineer for Pincock, Allen & Holt Inc.)
Resources Mr. Barton G. Stone, P. Geo. and Chief Geologist for Pincock, Allen & Holt Inc.
Amapari
Resources Mr. Rex Berthelsen, FAusIMM, CPGeo and Principal Geologist for New Gold Inc.