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C O M P A N YO V E R V I E W

New Gold Inc.:Maximising Assets at Peak Mines in Australia New Gold’s Peak Mines General Manager Greg Bowkett discusses the company’s unique approach to optimising Peak Gold Mines by maximising opportunities, refining management and company culture, and continuously looking to improve.Written by: Robert Spence Produced by: Nate Zeke

New Gold Inc.:Maximising Assets at Peak Mines in Australia New Gold’s Peak Mines General Manager Greg Bowkett discusses the company’s unique approach to optimising Peak Gold Mines by maximising opportunities, refining management and company culture, and continuously looking to improve.Written by: Robert Spence Produced by: Nate Zeke

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NEW GOLD INC.

Headquartered in Vancouver, Canada, New Gold Inc. is an intermediate gold

mining company with a focus on environment and social responsibility. The company has a growing portfolio consisting of four producing assets — the New Afton Mine in Canada, the Mesquite Mine in the United States, the Peak Mines in Australia and the Cerro San Pedro Mine in

Mexico — and three development projects in Canada and Chile.

Peak Gold Mines has inspired the Canadian miner to do more with less, which includes integrating new systems to optimise overall production and performance.

Under this formula, Peak Mines has turned strategy into action by harnessing the creativity and passion of its team while introducing business processes

Peak Gold Mine

M I N I N G

www.newgold .com 7 4

NEW GOLD INC.

that are lean and continuously improved. The Peak Mines in Australia has been a shining example of the success that incurs from these processes being put into place. Maximising opportunities Located in the Cobar Gold Field of New South Wales, Peak Mines is a medium-sized gold and copper mining operation,

comprised of five commercially active underground mines and a copper-gold processing plant. The mine produces gold dore for sale at the Perth mint and copper concentrate that is sold to markets in Asia.

Although New Gold has historically been focused on copper and gold, there is potential to maximize new opportunities at Peak Mines, according to

Tel: +61 8 8358 4444Fax: +61 8 8358 4333Email: [email protected]

14 Bowker Street, AdelaideSouth Australia 5044Australia

CONTACT

WE MEET OUR CLIENTS’ EXPECTATIONS WITH LEADING TECHNOLOGY, INTEGRITY, SAFETY AND EFFICIENCY.

Raisebore Australia is a South Australian-based company that provides a specialised service to Australian and international mining industries. It has the dynamic ability to ream raises from 0.6 metres up to 6.0 metres in diameter thanks to a large fleet of raiseboring machines and extensive inventories of consumables.

TTo date, the company has reamed in excess of 125 kilometres of shafts and provided drilling machines to all states of Australia and to international projects (West Africa, New Zealand, Hong Kong, Vietnam and Portugal).

Tel: +61 8 8358 4444Fax: +61 8 8358 4333Email: [email protected]

14 Bowker Street, AdelaideSouth Australia 5044Australia

CONTACT

WE MEET OUR CLIENTS’ EXPECTATIONS WITH LEADING TECHNOLOGY, INTEGRITY, SAFETY AND EFFICIENCY.

Raisebore Australia is a South Australian-based company that provides a specialised service to Australian and international mining industries. It has the dynamic ability to ream raises from 0.6 metres up to 6.0 metres in diameter thanks to a large fleet of raiseboring machines and extensive inventories of consumables.

TTo date, the company has reamed in excess of 125 kilometres of shafts and provided drilling machines to all states of Australia and to international projects (West Africa, New Zealand, Hong Kong, Vietnam and Portugal).

SUPPLIER PROFILE

THE HISTORY OF RAISEBORE AUSTRALIA AND NEW GOLD FROM 1996 TO THE PRESENT

Raisebore Australia Pty Ltd (RBA) is a private company, wholly owned by its founder and Managing Director, Mr Rod Bertram.

The company was registered in March 1995 and excavated its first raise for Peak Gold Mines in February 1996 which was an uphole raise. This was the very first box hole raise excavated in Australia by a raiseborer and followed the innovation of down reaming at Mt Isa a year earlier.

RBA has excavated in excess of 125,000 metres of shafts within Australia, Ghana, Portugal, Vietnam, Hong Kong and New Zealand many of which have been for New Gold and the other mines in the Cobar area where RBA has been the pre-eminent raiseboring Contractor since 1995.

In fact we understand that we have carried out in excess of 99% of all raiseboring requirements of Peak Gold since the initial box hole in 1996. Our fleet of six specialised small diameter raiseborers has the capability to box hole, down ream and excavate conventional slot raises as well as escape ways.

Our fleet of seven mid-range and large diameter raiseborers has excavated numerous underground raises for New Gold as well as a number of surface shafts up to 781 metres in depth which was completed in 2011.

Currently RBA is still servicing Peak’s raiseboring requirements with a low profile raiseborer drilling slot raises whilst a large diameter machine is completing a new ventilation circuit for the mine both from surface and underground locations.

RBA is proud of its achievements and in particular its 19 year association with Peak Gold, which would not have been possible without its dedicated workforce and a loyal client.

Raisebore Australia Pty Ltd will continue to offer unparalleled service to the industry whilst maintaining our responsibility for the safety of personnel, to the environment and act as a responsible corporate citizen.

Website: www.raisebore.com.au/

www.raisebore.com.au

Unparalleled service to the mining industry in metalliferous, hard rock and coal, as well as civil construction.

Pilot Drilling

Conventional Raiseboring

Box-Hole or Up-Reaming

Down-Reaming

Horizontal Raising

CORE BUSINESS:

Atlas CopcoRobbins91RH – 415Vand1000V Units

Atlas CopcoRobbins32R – 415Vand1000V Units

Atlas CopcoRobbins43R

Atlas CopcoRobbins73R

Atlas CopcoRobbins63R

Atlas CopcoRobbins97RL

Atlas CopcoRobbins211M

M I N I N G

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NEW GOLD INC.

managing director of Peak Mines, Greg Bowkett.

“We have a couple ore bodies with lead zinc that affect the current concentrate and we have to pay penalties because of this. So one of the things we are exploring is whether we could potentially reconfigure the circuit to produce a saleable lead or zinc product to turn this from a cost to a benefit.”

Though it is early in the evaluation phase this could enable the mine to access new parts of different ore bodies, which aligns with its strategy of maximising opportunities.

“Should this prove viable, this would add to our current operations and would give us the opportunity to maximise the whole asset instead of just the parts of it we are currently focused on,” Bowkett added.

Refining management and culture For Peak Mines, structured communication has been instrumental in changing the company’s management style.

The mine has enlisted the help of Quest Worldwide, a global change management consultancy that works with organisations to improve their business performance. The partnership focuses on three fundamental areas: operational excellence, strategy execution and people management.

“Quest Worldwide is a global change management consultancy,” said CEO Mark Pinchen. “We operate from regional bases in Australia, Europe and the United States. We work with our clients to engage their people in deploying their strategies and realising significant, sustainable improvements to their organisations and cultures, delivering real bottom-line impact.”

“Quest has been vital in getting the different departments of our mine to understand our processes so we can achieve our goal. It’s been monumental for the people management aspect of our business,” Bowkett said. “Quest has helped to engage our people, get them out of their comfort zones and to start thinking at

www.raisebore.com.au

Unparalleled service to the mining industry in metalliferous, hard rock and coal, as well as civil construction.

Pilot Drilling

Conventional Raiseboring

Box-Hole or Up-Reaming

Down-Reaming

Horizontal Raising

CORE BUSINESS:

Atlas CopcoRobbins91RH – 415Vand1000V Units

Atlas CopcoRobbins32R – 415Vand1000V Units

Atlas CopcoRobbins43R

Atlas CopcoRobbins73R

Atlas CopcoRobbins63R

Atlas CopcoRobbins97RL

Atlas CopcoRobbins211M

1800 897 336 [email protected] | www.tyredoctor.com.au

ISO 9001:2008

qualitymanagementsystem

ISO 22000:2005

food safetymanagementsystem

ISO 14001:2004

environmentalmanagementsystem

AS 4801:2001

safetymanagementsystem

ISO 9001:2008

qualitymanagementsystem

ISO 22000:2005

food safetymanagementsystem

ISO 14001:2004

environmentalmanagementsystem

AS 4801:2001

safetymanagementsystem

ISO 9001:2008

qualitymanagementsystem

ISO 22000:2005

food safetymanagementsystem

ISO 14001:2004

environmentalmanagementsystem

AS 4801:2001

safetymanagementsystem

• NDT & RIM CERTIFICATIONS• NEW RIMS & REPAIRS• ONSITE FITTING TRUCKS

• NEW TYRES• TYRE REPAIRS• SOLID FILL TYRES

TOTAL TYRE & RIM SOLUTIONS

NEW GOLD INC. M I N I N G

www.newgold .com 8 0

the business level. It boils down to everyone understanding and speaking the same language.”

According to Pinchen, this is exactly what Quest does.

“We help their clients and their people to think innovatively about the business at the business level and to then apply the disciplines to realise the vision, goals and plans that are formed. It takes courage and commitment and forces people outside of their comfort zones, but also builds new awareness and powerful ownership of the solutions and requirements. It’s a challenge to

involve people in this way but it pays dividends.”

The partnership has aided Peak Mines in creating a high-performance culture that is focused on improving customer relations while continuously driving improvements.

“We value integrity, commitment, innovation, employee development and teamwork,” said Bowkett. “We believe our business can be run through these values and we’re committed to implementing a positive change.”

Quest works with project

1800 897 336 [email protected] | www.tyredoctor.com.au

ISO 9001:2008

qualitymanagementsystem

ISO 22000:2005

food safetymanagementsystem

ISO 14001:2004

environmentalmanagementsystem

AS 4801:2001

safetymanagementsystem

ISO 9001:2008

qualitymanagementsystem

ISO 22000:2005

food safetymanagementsystem

ISO 14001:2004

environmentalmanagementsystem

AS 4801:2001

safetymanagementsystem

ISO 9001:2008

qualitymanagementsystem

ISO 22000:2005

food safetymanagementsystem

ISO 14001:2004

environmentalmanagementsystem

AS 4801:2001

safetymanagementsystem

• NDT & RIM CERTIFICATIONS• NEW RIMS & REPAIRS• ONSITE FITTING TRUCKS

• NEW TYRES• TYRE REPAIRS• SOLID FILL TYRES

TOTAL TYRE & RIM SOLUTIONS

SUPPLIER PROFILE TYRE DOCTORTyre Doctor are proud to have been involved with Peak Gold Mines for over 10 years.

As a total tyre and wheel solution provider, Tyre Doctor provides the following benefits to the mining industry.

New Tyres: Large stock volumes and extensive industry knowledge make Tyre Doctor the ideal tyre supply partner for your mining operation.

Rims: Tyre Doctor has state of the art rim testing equipment and a modern facility for repairing and custom manufacturing rims to ensure your fleet stays safe and mobile.

Tyre Repairs: Hot Vulcanising tyre repairs form the heart of the Tyre Doctor Operations. All sizes of tyres up to 63” repaired in our workshop with guaranteed short leadtimes.

Onsite Services: With a fleet of fitting trucks and conveyor belt repair units, all operated by qualified staff, Tyre Doctor has all onsite requirements covered.

Call 1800 897 336 to discuss how we can reduce your operating costs, reduce your machinery downtime and increase safety at your mining or earthmoving operation.

Website: www.tyredoctor.com.au

Make your processes truly productive!

QuestWorldwide

Quest is a global change management consultancy. Since 1988, operating from our regional bases in Australia, Europe & the USA we have delivered success for our clients around the world in all sectors.

We enable our clients to better

deploy their strategies. Our

approach provides a balanced

framework in which firms can put

their values to effect and engage

their people, mobilising teams at

all levels to deliver on their plans

and achieve the company’s goals.

Focusing strategy

We foster a performance

improvement culture throughout

the business by taking a whole

of business perspective. At the

same time we train and equip

client teams to really challenge

the productivity of their processes

and ultimately build a culture of

continuous improvement.

Driving improvement Engaging people

We work in partnership to

engage people at all levels in

client businesses, creating a

service oriented, high performing

culture that can make a strong

linkage between its values and

behaviours. We design and run

high-energy events to engage

creativity, knowledge and passion

in teams of all sizes.

Australia | New Zealand | Asia +61 (2) 9904 8488

US | Canada | South America +1 (845) 279 5707

UK | Europe | Africa | Middle East +44 (0) 1483 427 031

Ready to work with you

NEW GOLD INC. M I N I N G

www.newgold .com 8 2

leaders to implement a coordinated approach to improve project effectiveness with a two-way communication style.

“Instead of our company only being driven by the general manager or CEO, we actually want it to be integrated,” said Bowkett. “We want our company to be driven by the leadership side and the workforce side so we can produce the best product possible.

Another component to refining the Peak Mines’ commitment to employees and company culture has been the assistance of the Workplace Health and Safety

Committee (WHS), a safety group comprised of key employees, including a member from every department in the organisation. It has been crucial in strengthening the company’s safety culture and getting Peak Mines to look at the bigger issues.

“WHS has helped change the culture of our people to be more proactive in recognising safety issues,” said Bowkett. “The committee really helps to align our focus on the values, teamwork, and development and training of employees to ensure they understand how we view safety

Make your processes truly productive!

QuestWorldwide

Quest is a global change management consultancy. Since 1988, operating from our regional bases in Australia, Europe & the USA we have delivered success for our clients around the world in all sectors.

We enable our clients to better

deploy their strategies. Our

approach provides a balanced

framework in which firms can put

their values to effect and engage

their people, mobilising teams at

all levels to deliver on their plans

and achieve the company’s goals.

Focusing strategy

We foster a performance

improvement culture throughout

the business by taking a whole

of business perspective. At the

same time we train and equip

client teams to really challenge

the productivity of their processes

and ultimately build a culture of

continuous improvement.

Driving improvement Engaging people

We work in partnership to

engage people at all levels in

client businesses, creating a

service oriented, high performing

culture that can make a strong

linkage between its values and

behaviours. We design and run

high-energy events to engage

creativity, knowledge and passion

in teams of all sizes.

Australia | New Zealand | Asia +61 (2) 9904 8488

US | Canada | South America +1 (845) 279 5707

UK | Europe | Africa | Middle East +44 (0) 1483 427 031

Ready to work with you

Established: 1988

Industry: Energy & Resources, Financial Services, Manufacturing, Logistics, Petrochemicals, Health & Life Sciences, Retail & Leisure, Technology, Media & Telecommunications

Services: Business Transformation, Change Management, Human Capital, Leadership, Programme/Project Management, Strategy Deployment, Operational Excellence, High Impact Events & Culture Change

On-Going Projects: Business Improvement Exercises, Lean Manufacturing, Strategic Planning & Deployment; Major Projects Deployment & Communication Management:Steve Smith - ChairmanBret Shaw - Regional Director Asia PacificMichael Hill - Regional Director EMEAJohn Guadagnino - Regional Director Americas

Website: www.quest-worldwide.com

SUPPLIER PROFILEQUEST WORLDWIDE

[email protected]

SINCE 1986

www.inlandpetroleum.com.au

Inland Petroleum focuses on excellence in identifying, qualifying and delivering precise fuel solutions and services that enhance our customers’ bottom line.

Delivery options and capacity flexibilityFuel supply diversificationIntegrated logistics managementOperational efficiencySimplified administrationRRemote site monitoringAutomated technological systems

Specialising and customising solutions in:

NEW GOLD INC. M I N I N G

www.newgold .com 8 4

and what is needed to achieved it as a team.”

Operational excellence With a new approach, Peak Mines has also been able to streamline processes and optimise results. The company’s newly adopted management approach to maintenance, which incorporates the lean manufacturing model, helped Peak Mines cut its maintenance costs by USD $1.3 million in 2014.

“The improved management approach is making a tremendous difference in how we operate and

conduct business,” said Bowkett. “The results speak for themselves. The lean model has given us a goal for our bottom line, which helps us know exactly how many people we need to run this operation successfully, and profitably.”

Peak Mines has reduced its maintenance cost on its loaders from USD $120 per hour to $50 per hour. The company was then able to increase its jumbo uptime from 60 percent to 85 percent. In addition, Peak Mines commissioned the help of Kepner-Tregoe to assist with a wide range of business improvements such

Peak Gold Mine Workers

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NEW GOLD INC.

Peak Gold Mine

M I N I N G

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NEW GOLD INC.

as increased operational efficiency and overall equipment effectiveness.

“Kepner has helped us select the best locations for equipment to give us maximum capacity,” said Bowkett. “The company has essentially given us more opportunities with what we have.”

The next chapter Along with additional exploration projects lined up, New Gold will continue to evaluate opportunities associated with the lead and zinc or at Peak.

“Right now we’re focused on mining at the rate that’s optimal for us, while continuing to keep our employees safe,” Bowkett said. “Our Penalty for Profit initiative is another aspect we’re going to focus on moving forward.”

Company Information

I N D U S T RY

Mining

H E A D Q U A RT E R S

Vancouver BC, Canada

F O U N D E D

1980

E M P L O Y E E S

1757

R E V E N U E

N/A

P R O D U C T S /

S E R V I C E SNew Gold is an intermediate gold mining company. The company has a portfolio of four producing assets and three significant development projects. The New Afton Mine in Canada, the Mesquite Mine in the United States, the Peak Mines in Australia and the Cerro San Pedro Mine in Mexico, provide the company with its current production base. In addition, New Gold owns 100% of the Rainy River and Blackwater projects, both in Canada, as well as 30% of the El Morro project located in Chile. New Gold’s objective is to be the leading intermediate gold producer, focused on the environment and social responsibility.

NEW GOLD INC.

Address Suite 1800, Two Bentall Centre, 555 Burrard Street, Box 212

VancouverBritish Columbia, Canada, V7X1M9

Tel. (604) 696-4100 Fax. (604) 696-4110

[email protected] www.newgold.com