“Success here is meaningful, as K-Zone is one of several areas located near mine infrastructure that provide potential to expand reserves and extend mine life,” Canaccord Genuity Capital Markets mining analyst Jeremy Hoy wrote in a Wednesday note to clients.
Further results may demonstrate the value of some of these expansion opportunities, extend the mine life, and/or sustain higher production levels beyond 2027, Hoy said.
New Gold has reiterated its strategy to extend the New Afton mine life beyond 2030 through the drill bit. The results showed the company had expanded K-Zone and confirmed high-grade mineralization in its bornite-bearing core, he said. Copper and gold grades are proving to be higher in the bornite-bearing core of K-Zone compared to the haloing chalcopyrite-bearing copper-gold mineralization.
“The latest K-Zone drilling includes some of the best-mineralized intervals drilled at the New Afton mine and expands…
