June 15 New Gold Inc said it is
planning to increase drilling and also significantly raise
exploration budget at its recently bought Blackwater project in
central British Columbia.
The mid-sized Canadian gold miner, which is planning to
drill 40,000-50,000 metres in the second half of the year, said
it is budgeting $20 million for exploration at the project.
In April, New Gold said it had struck a deal to acquire gold
exploration company Richfield Ventures that gave it
control of Richfield's flagship Blackwater project. The
acquisition was to add about 3.8 million ounces of gold
resources to New Gold's portfolio.
"The holes drilled since the March 2011 resource estimate
have shown good continuity and we look forward to building upon
these successful results to grow the Blackwater resource," said
Mark Petersen, vice-president, exploration.
From the beginning of the year through its acquisition of
Richfield, about 20,000 metres of drilling had been completed,
New Gold said, adding that Richfield had targeted 30,000 metres
of drilling for the full year.
The total drilling on the project for the year should be
over 60,000 metres now, more than double of what Richfield had
originally targeted, New Gold said in a statement.
New Gold shares closed at C$8.86 on Tuesday on the Toronto
(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by