FORT FRANCES, ON — Local roads and other infrastructure weren't the only casualties from the recent prolonged flooding in the Fort Frances area.
New Gold reports that production at its Rainy River Mine, northwest of Fort Frances, was curtailed by water in the work area.
The details are disclosed in the company's second-quarter financial results, released late Monday.
"During the second quarter, operations were adversely impacted by heavy rainfall and flooding," New Gold reported.
"Total tonnes mined from the open pit were below expectations as flooding in the pit due to the unfavourable weather impacted the mining rate, the mine sequencing, and access to higher grade ore planned for the second half of the year."
The company said the reduction in output has forced a change to the mine plan for the balance of 2022.
These adjustments, combined with what it described as "newly-hired operating expertise at the site," will focus on "positioning the open pit operations to optimal conditions."
New Gold said that, as a result, the mine will continue to process low-grade ore material in the second half of the year.
Rainy River Mine's production for 2022 is now expected to between 230,000 and 250,000 ounces, compared with a previous target of 265,000 to 295,000 ounces.
Primarily due to the reduced production, but combined with the impact of inflation, operating expenses per ounce are now projected to be $960 to $1,040 as opposed to an earlier forecast of $730 to $810.
All-in sustaining costs will range between $1,620 to $1,720 per ounce compared with the earlier prediction of $1,270 to $1,370.
The company said underground development at the mine continues to advance, with initial production on track for the fourth quarter of this year.
"The mine continues to assess opportunities to offset the negative impact to both production and costs," the statement said.
Renaud Adams, president and CEO, said he remains confident about the increased production profile that was outlined in an updated Technical Report earlier this year
Released in April, the report indicated that the mine should continue to operate until 2031, which is three years longer than the previous estimate.
The mine employs about 800 people and is the mainstay of the district's economy.
