Highlights about New Gold's Minera San Xavier-Cerro San Pedro MIne


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The Cerro San Pedro operation in central Mexico, known regionally as Minera San Xavier, has a large impact on the direct economy in the area surrounding Cerro San Pedro. Find out more about New Gold’s contribution to the Mexican economy and to the well-being of the residents of the area immediately surrounding Cerro San Pedro in this presentation.

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Highlights about New Gold's Minera San Xavier-Cerro San Pedro MIne

  1. 1. Minera San Xavier’s Cerro San Pedro Mine December 2009
  2. 2. New Gold – A Responsible International Mining Company www.newgold.com TSX/NYSE AMEX US: NGD 2
  3. 3. New Gold – A Significant International Mining Company Gold producer headquartered in Canada Portfolio of mining assets in the United States, Mexico, Australia, Canada, Brazil and Chile Employs latest technology to assure maximum value to all stakeholders Committed to operating in a socially responsible and sustainable manner Total 2009 YTD revenue US $192 million; US$81 million from Cerro San Pedro www.newgold.com TSX/NYSE AMEX US: NGD 3
  4. 4. New Gold - A Canadian Company with International Standards Member of UN Global Compact Member of CBSR – Canadian Business for Social Responsibility Supporter of Clinton Giustra Sustainable Growth Initiative Achieved ISO 14001:2004 certification of environmental management systems in 2008 and recertification in 2009 at Cerro San Pedro Received Orica World Prize for operating best practices with the use of explosives Obtained the Casco de Plata, CAMIMEX’s national award for best safety performance in 2007and 2008 www.newgold.com TSX/NYSE AMEX US: NGD 4
  5. 5. New Gold - Management & Board of Directors EXECUTIVE MANAGEMENT TEAM Randall Oliphant, Executive Chairman (Former President & CEO, Barrick Gold Corporation ) Robert Gallagher, President and CEO (Former Vice President, Newmont Mining Corp) Brian Penny, Executive VP and CFO (Former VP Finance, Kinross Gold Co.) James Currie, Executive VP and COO (Former VP Operations Miramar Mining) BOARD OF DIRECTORS James Estey, Director, Chairman (Former President, UBS Securities Canada Inc.) Robert Gallagher, CEO & Director Vahan Kololian, Director (Chairman, Precinda Corporation) Martyn Konig, Director (Board Director of NM Rothschilds and Sons Ltd and CEO European Goldfields) Pierre Lassonde, Director (Founder and Chairman, Franco-Nevada) Craig Nelsen, Director (Former Executive VP Exploration at Gold Fields Limited) Randall Oliphant, Executive Chairman and Director Ian Telfer, Director (Chairman, Goldcorp) Raymond Threlkeld, Director (Former President & CEO, Western Goldfields) www.newgold.com TSX/NYSE AMEX US: NGD 5
  6. 6. New Gold - Vision and Mission Statements WHERE THE COMPANY IS GOING, HOW IT WILL GET THERE Vision: To become a million ounce, low cost gold producer Mission: Achieve our vision by: - Delivering on operational targets (safety, cost, production and environment & social responsibility) - Growing internally through project development and continuous improvement at our existing operations - Growing externally through continued consolidation - Maintaining a strong financial position www.newgold.com TSX/NYSE AMEX US: NGD 6
  7. 7. New Gold - Employee Values EMPLOYEES COMMITMENT ON HOW THEY WILL GO ABOUT THEIR WORK Integrity – do what’s right Creativity – lead with innovation Commitment - deliver Develop our employees – commit to personal development Teamwork – leverage our collective skills www.newgold.com TSX/NYSE AMEX US: NGD 7
  8. 8. New Gold - Principal Assets GLOBALLY DIVERSIFIED IN MINING-FRIENDLY JURISDICTIONS New Afton Canada LOM Annual Production Mesquite United States •Gold (K oz) 85 2009 Production • Diversified gold production base •Copper (m lb) 75 • Market capitalization C$1.5 billion •Gold (K oz) 140-150 • Total assets (as at September 31, 2009) US$2.5 billion • Total production (9 months ended September 31, 2009) • Gold 190,000 ounces Cerro San Pedro Mexico • Silver 1.2 million ounces 2009 Production • Copper 11 million pounds •Gold (K oz) 90-100 Amapari •Silver (m oz) 1.1 – 1.3 Brazil Suspended Peak operation Australia El Morro Chile 2009 Production LOM Annual Production •Gold (K oz) 90-100 •Copper (m lb) 13-15 •Gold (K oz) 95 •Copper (m lb) 105 Producing Mines Development Projects Undergoing Strategic Review www.newgold.com TSX/NYSE AMEX US: NGD 8
  9. 9. New Gold - Operating Assets Cerro San Pedro Location Mexico Mine Type Open Pit Commenced Production 2008 Estimated Mine Life ~ 9 years Gold Production ‘09 Guidance oz 90,000 -100,000 Completed sulfide Future Upside exploration program with 30 drill holes Mesquite Location United States Mine Type Open Pit Commenced Production 2008 Estimated Mine Life 13 years Gold Production ‘09 Guidance oz 140,000 -150,000 1 million ounce sulfide resource below current pit – Future Upside exploring processing alternatives www.newgold.com TSX/NYSE AMEX US: NGD 9
  10. 10. New Gold - Operating Assets Peak Mines Location Australia Mine Type Underground Commenced Production 1992 Estimated Mine Life ~ 8 years Gold Production ‘09 Guidance oz 90,000 -100,000 Potential for additional future targets around Peak’s currently Future Upside existing underground ore body and in the surrounding region www.newgold.com TSX/NYSE AMEX US: NGD 10
  11. 11. New Gold - Development Projects New Afton Location Canada Mine type Underground Estimate Production start-up 2012 Estimated mine life 12 years LOM Production/yr (Au oz/Cu lbs) 85,000/75million Potential for additional blocks Future Upside currently included in mine plan El Morro (30%) Location Chile Mine type Open Pit Estimated mine life 15 years LOM Production/yr (Au oz/Cu lbs)4 95,000/105million Swap New Gold’s stake for a gold producing asset, Future Upside develop the asset or sell 30% interest www.newgold.com TSX/NYSE AMEX US: NGD 11
  12. 12. www.newgold.com TSX/NYSE AMEX US: NGD 12
  13. 13. Minera San Xavier’s Cerro San Pedro 1995 – Metallica Resources acquired Minera San Xavier 1999 – Original EIS MIA granted 2004 to 2007 – Development and Construction Stages 2007 (May) – Production commences 2008 (July) – New Gold acquired MSX through business combination with Metallica Resources and Peak Gold 2008 – Cerro San Pedro awarded CAMIMEX’s Plato del Oro for being the safest mine of its size 2008 – Received Orica’s World Prize for best practices in use of explosives in open pit mines 2008 - Achieved ISO14001 certification of its environmental management systems 2009 – Production estimated to be 90,000 – 100,000 ounces gold and 1.1 to 1.3 million ounces silver www.newgold.com TSX/NYSE AMEX US: NGD 13
  14. 14. Cerro San Pedro - Economic Impact MSX’s Cerro San Pedro commenced production in 2008 with an estimated mine life of 10 years In 2009, Cerro San Pedro will produced 90,000 – 100,000 ounces gold and 1.1 to 1.3 million ounces of silver for exportation, which should bring in excess of US$100 million into the country MSX employs 509 employees and contractors at the Cerro San Pedro; 60% from the immediate surrounding area with the remainder living in San Luis Potosi. Indirect employment totals more than 1,500 people MSX expects to spend US$6.5 million on employee wages and benefits at Cerro San Pedro this year Regional expenditure directly benefitting the surrounding area in 2008 was approximately US$49 million Corporate income taxes paid in Mexico in 2008 were US $2.5 million and will be approximately US $10 million in 2009 and over the remaining projected life of mine will amount to over US$115 million The company has invested in excess of US$105 million in capital expenditures since the project’s inception www.newgold.com TSX/NYSE AMEX US: NGD 14
  15. 15. Cerro San Pedro - Corporate Social Responsibility MSX has improved the local environment and preserved the historic character of the town Local residents appreciate the benefits that the mine brings to them Cleaned up mining waste abandoned by previous miners Built new homes and schools for residents Rehabilitated historic churches that had suffered from many decades of neglect and built a new residence for the priest of San Nicolas church Provide weekly medical and dental care for 10 villages immediately surrounding MSX Provided trade skills training Equipped schools with computers Supported cultural festivals The site’s nursery has so far yielded more than 75,000 plants for use in reclamation and agriculture MSX reforested 52 hectares with 56,000 plants in the Monte Caldera area in 2008 www.newgold.com TSX/NYSE AMEX US: NGD 15
  16. 16. New Gold – Generating Wealth in a Sustainable Manner Committed to excellence in the management of health, safety, environment and sustainability Ensure health and safety of employees, contractors and visitors Prevent pollution Minimize impact that mining operation may cause the environment Demonstrate our commitment to fostering sustainable communities Practice the progressive rehabilitation of areas impacted by its activities Follow recognized international guidelines www.newgold.com TSX/NYSE AMEX US: NGD 16
  17. 17. www.newgold.com TSX/NYSE AMEX US: NGD 17
  18. 18. New Gold and MSX Contact Information New Gold Media and Communications Christine Marks Investor Relations and External Communications Coordinator New Gold Inc. (604)639-0023 christine.marks@newgold.com www.newgold.com TSX/NYSE AMEX US: NGD 18
  19. 19. Cautionary Statement All monetary amounts in U.S. dollars unless otherwise stated CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain information contained in this presentation, including any information relating to New Gold’s future financial or operating performance may be deemed “forward looking”. All statements in this presentation other than statements of historical fact, that address events or developments that New Gold expects to occur, are “forward-looking statements”. Forward- looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “does not expect”, “plans”, “anticipates”, “does not anticipate”, “believes”, “intends”, “estimates”, “projects”, “potential”, ”scheduled”, “forecast”, “budget” and similar expressions, or that events or conditions “will”, “would”, “may”, “could”, “should” or “might” occur. All such forward looking statements are subject to important risk factors and uncertainties, many of which are beyond New Gold’s ability to control or predict. Forward-looking statements are necessarily based on estimates and assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause New Gold’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such factors include, without limitation: significant capital requirements; fluctuations in the international currency markets and in the rates of exchange of the currencies of Canada, the United States, Australia, Brazil, Mexico and Chile; price volatility in the spot and forward markets for commodities; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local government legislation in Canada, the United States, Australia, Brazil, Mexico and Chile or any other country in which New Gold currently or may in the future carry on business; taxation; controls, regulations and political or economic developments in the countries in which New Gold does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining and maintaining the validity and enforceability of the necessary licenses and permits and complying with the permitting requirements of each jurisdiction that New Gold operates, including, but not limited to, Mexico, where New Gold is involved with ongoing challenges relating to its environmental impact statement for Cerro San Pedro Mine; the lack of certainty with respect to the Mexican and other foreign legal systems, which may not be immune from the influence of political pressure, corruption or other factors that are inconsistent with the rule of law; diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labour disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks) as well as “Risks Factors” included in New Gold’s Annual Information Form filed on March 31, 2009 and Management Information Circular filed on April 15, 2009, both available at www.sedar.com. Forward-looking statements are not guarantees of future performance, and actual results and future events could materially differ from those anticipated in such statements. All of the forward-looking statements contained in this presentation are qualified by these cautionary statements. New Gold expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except in accordance with applicable securities laws. www.newgold.com TSX/NYSE AMEX US: NGD 19