New Gold Reserves and Resources image

At December 31, 2009, New Gold's attributable Proven and Probable gold reserves increased to 8.2 million ounces from 7.4 million ounces, including gold reserves at the Mesquite Mine, at December 31, 2008. Total Measured and Indicated gold resources, inclusive of reserves, increased to 13.5 million ounces from 12.1 million ounces over the same period.

Highlights of the reserves and resources update include:

  • Mesquite gold reserves increased by 19% to 3.1 million ounces from 2.6 million ounces
  • Cerro San Pedro gold reserves increased by 11% to 1.4 million ounces from 1.3 million ounces
  • Cerro San Pedro Measured and Indicated resources, inclusive of reserves, increased by 33% to 2.3 million ounces from 1.7 million ounces, attributable to the addition of 0.9 million ounces of sulphide resources
  • Peak continued its long history of reserves replacement with December 31, 2009 gold reserves of 0.6 million ounces more than replacing the ounces mined during 2009

DETAILED RESERVES AND RESOURCES SUMMARY

MINERAL RESERVES AND RESOURCES SUMMARY AS OF DECEMBER 31, 2009
Contained Metals
Gold (Koz) Silver (Koz) Copper (Mlbs) Zinc (Mlbs) Lead (Mlbs)
Reserves
  Proven 3,463 31,200 930 - -
  Probable 4,716 25,012 1,844 - -
Total P&P 8,179 56,212 2,774 - -
Resources
  Measured 5,694 44,774 1,935 332 79
  Indicated 7,841 39,823 1,746 660 123
Total M&I 13,536 84,597 3,680 992 203
Inferred 6,817 102,713 541 3,245 500

See Notes to mineral reserves & resources statements for further detail on reserves and resources calculations.


MINERAL RESERVES STATEMENT AS OF DECEMBER 31, 2009
Metal Grade Contained Metal
Tonnes
000's
Gold
g/t
Silver
g/t
Copper
%
Gold
Koz
Silver
Koz
Copper
Koz
Mesquite
  Proven 73,522 0.60 - - 1,411 - -
  Probable 93,287 0.58 - - 1,725 - -
Mesquite P&P 166,809 0.58 - - 3,137 - -
Cerro San Pedro
  Proven 42,709 0.61 22.41 - 838 30,772 -
  Probable 35,452 0.50 18.79 - 570 21,417 -
CSP P&P 78,161 0.56 20.77 - 1,408 52,189 -
Peak
  Proven 1,212 3.92 11.00 0.79 153 417 21
  Probable 2,598 5.00 6.00 0.80 418 501 46
Peak P&P 3,810 4.66 7.59 0.80 570 918 67
New Afton
  Proven - - - - - - -
  Probable 47,400 0.69 2.03 0.95 1,052 3,094 993
New Afton P&P 47,400 0.69 2.03 0.95 1,052 3,094 993
El Morro 100% Basis 30% Basis
  Proven 208,473 0.53 - 0.66 1,062 - 909
  Probable 241,761 0.41 - 0.50 951 - 806
El Morro P&P 450,234 0.46 - 0.58 2,013 - 1,715

See Notes to mineral reserves & resources statements for further detail on reserves and resources calculations.



MINERAL RESOURCE STATEMENT (INCLUSIVE OF RESERVES) AS OF DECEMBER 31, 2009
Metal Grade Contained Metal
Tonnes
000's
Gold
g/t
Silver
g/t
Copper
%
Zinc
%
Lead
%
Gold
Koz
Silver
Koz
Copper
Mlbs
Zinc
Mlbs
Lead
Mlbs
Mesquite
  Measured 111,576 0.52 - - - - 1,860 - - - -
  Indicated 185,363 0.50 - - - - 3,004 - - - -
Mesquite M&I 296,939 0.51 - - - - 4,865 - - - -
Cerro San Pedro
  Measured (oxide) 48,254 0.52 19.72 - - - 799 30,600 - - -
  Indicated (oxide) 43,861 0.39 14.79 - - - 556 20,859 - - -
CSP M&I (oxide) 92,115 0.46 17.38 - - - 1,355 51,459 - - -
  Measured (sulphide) 18,739 0.53 17.10 - 0.80 0.19 320 10,305 - 332 79
  Indicated (sulphide) 42,307 0.42 11.79 - 0.71 0.13 576 16,036 - 660 123
CSP M&I (sulphide) 61,046 0.46 13.42 - 0.74 0.15 897 26,341 - 992 203
Peak
  Measured 2,453 3.70 9.00 1.05 - - 295 715 57 - -
  Indicated 3,614 4.80 7.00 0.88 - - 554 775 70 - -
Peak M&I 6,067 4.36 7.81 0.95 - - 849 1,490 127 - -
New Afton
  Measured 35,100 0.91 2.80 1.26 - - 1,027 3,160 975 - -
  Indicated 29,900 0.67 2.20 0.85 - - 644 2,115 560 - -
New Afton M&I 65,000 0.80 2.52 1.07 - - 1,671 5,275 1,535 - -
El Morro 100% Basis 30% Basis
  Measured 211,164 0.54 - 0.65 - - 1,108 - 903 - -
  Indicated 347,242 0.46 - 0.49 - - 1,551 - 1,115 - -
El Morro M&I 558,406 0.49 - 0.55 - - 2,659 - 2,018 - -
Amapari
  Measured 8,949 1.00 - - - - 288 - - - -
  Indicated 17,948 1.65 - - - - 952 - - - -
Amapari M&I 26,897 1.43 - - - - 1,240 - - - -


INFERRED RESOURCE STATEMENT AS OF DECEMBER 31, 2009
Metal Grade Contained Metal
Tonnes
000's
Gold
g/t
Silver
g/t
Copper
%
Zinc
%
Lead
%
Gold
Koz
Silver
Koz
Copper
Mlbs
Zinc
Mlbs
Lead
Mlbs
Mesquite 22,804 0.49 - - - - 357 - - - -
Cerro San Pedro
Inside Mineral Resource Pit
  Oxides 17,931 0.29 9.69 - - - 168 5,586 - - -
  Sulphides 20,964 0.33 8.54 - 1.22 0.05 224 5,758 - 564 22
Outside Mineral Resource Pit
  Oxides 86,107 0.27 6.88 - - - 756 19,054 - - -
  Sulphides 210,669 0.43 8.00 - 0.45 0.07 2,945 54,161 - 2,073 319
3,701 73,215 2,073 319
Manto Sulphides 4,470 1.98 114.5 - 6.17 1.61 285 16,456 - 608 159
Peak 1,999 4.70 5.00 0.75 - - 300 347 33 - -
New Afton 25,200 0.54 1.70 0.66 - - 438 1,377 367 - -
100% Basis 30% Basis
El Morro 62,335 0.18 - 0.34 - - 110 - 141 - -
Amapari 17,449 2.20 - - - - 1,234 - - - -

See Notes to mineral reserves & resources statements for further detail on reserves and resources calculations.



NOTES TO MINERAL RESERVES & RESOURCES STATEMENTS

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

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 SILVER COPPER LOWER CUT-OFF
$/oz $/oz $/lb
Mesquite
$
800
- - 0.21 g/t Au - Oxide reserves
0.41 g/t Au - Sulphide reserves
Cerro San Pedro
$
800
$
12.00
- US$2.58/t NSR
Peak
$
800
$
12.00
$
2.00
AU$118 - 152/t NSR
New Afton
$
800
$
12.00
$
2.00
US$19/t NSR
El Morro
$
500
-
$
1.25
0.30% CuEq

Mineral reserves 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.

2. MINERAL RESOURCES

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
$/oz $/oz $/lb $/lb $/lb
Mesquite
$
900
- - - - 0.09 g/t Au - Oxide resources
0.19 g/t Au - Sulphide resources
Cerro San Pedro
$
900
$
15.00
-
$
1.00
$
0.75
0.1 g/t Au - Oxide resources
0.4 g/t AuEq - Sulphide resources
2.5 g/t AuEq - Manto Sulphide resources
Peak
$
800
$
12.00
$
2.00
$
0.80
$
0.60
A$95/t NSR
New Afton
$
900
$
15.00
$
2.00
- - 0.4% CuEq - All resources
El Morro
$
500
-
$
1.25
- - 0.3% CuEq - All resources
Amapari
$
900
- - - - 0.5 - 0.7 g/t Au - Open pit resources
1.4 g/t Au - Underground resources

Mineral reserves 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.

3.

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 mineral reserves 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 a lower grade cut-off of 0.3% copper-equivalent ("EqCu") where EqCu(%) = Cu(%) + 0.592 x Au (g/t) and Cu(%) = % 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.



5.

Figures may not add due to rounding.


QUALIFIED PERSONS

The following table sets out the individuals who are the Qualifed Persons as defned by Canadian National Instrument 43-101 in connection with New Gold's Mineral Reserves and Mineral Resources Statements as of December 31, 2009.

MINERAL PROPERTY QUALIFIED PERSON
Mesquite
Reserves Mr. Wayne Valliant, P. Geo., and Principal Geologist for Scott Wilson Roscoe Postle Assoc.
Resources Mr. Richard J. Lambert, P.E. and Principal Mining Consultant for Scott Wilson Roscoe Postle Assoc.
Cerro San Pedro
Reserves Mr. Christopher Moreton, PhD. and P. Geo., and Senior Consulting Geologist for Scott Wilson Roscoe Postle Assoc.
Resources Mr. Richard J. Lambert, P.E., and Principal Mining Consultant for Scott Wilson Roscoe Postle Assoc.
Peak
Reserves Mr. Rex Berthelsen, FAusIMM, CPGeo and Principal Geologist for New Gold Inc.
Resources Mr. Sean Pearce, Member AusIMM, and Manager of Mining for Peak Mine
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 Principal Mining Consultant for Scott Wilson Roscoe Postle Assoc.
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.

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.


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