New Gold looks to sell Peak

Peak Gold Mines is officially “on the market”. ▪ File photo

Peak Gold Mines is officially “on the market” after parent company New Gold announced last Thursday the mine was for sale.

Staff were asked to attend a whole site meeting last Thursday morning where they were informed of the news, and New Gold included the news of the proposed sale as part of their second quarter report released on July 26 (Canada time).

“Subsequent to the end of the quarter, the company initiated a process to divest the Peak Mines, located in New South Wales, Australia, as the company continues to focus on its America’s centric portfolio of operating mines and development projects”, the New Gold report said.

Peak’s acting general manager Michael Zannes said the sale will allow New Gold to  focus on its North American operations and development projects while offering a prospective buyer the opportunity to acquire Peak’s strong track record of performance and unlock its longer term potential.


“Peak Mines is a high-quality operation in a top-tier mining jurisdiction, has been a strong contributor to New Gold’s operational performance over the past few years, and benefits from an experienced and dedicated local management and workforce,” Mr Zannes said.

“The workforce and senior management team is one of the core strengths at Peak, given the depths of the knowledge base, long term commitment and excellent track record of consistent operational performance, and responsible stewardship in the community.”

Mr Zannes said coming off a strong operational performance in 2016, Peak has a long history of reserve replacement, having been in continuous production since 1992.

“Moreover, the Peak team has assembled the strongest pipeline of development opportunities and targets in several years, including extensions to known gold and copper deposits and untapped potential from the recent discovery of lead-zinc orebodies,” he said.

New Gold believes that the sale process may be completed by the end of 2017.

“In the meantime, Peak Mines will operate its business as usual.

“New Gold will provide additional details regarding the sale process they are available,” Mr Zannes said.