New Gold, the company that owns the New Afton mine west of Kamloops says its massive C-Zone development has been granted provincial approval.

In a statement, the company says B.C.’s Ministry of Energy, Mines, and Low Carbon Innovation has issued a M229 Permit Amendment enabling it to mine the C-Zone, which is deeper and further to the east of the current caves.

“The receipt of the Mines Act M229 Permit Amendment is a significant milestone for New Afton and allows for mining of the C-Zone,” New Gold President and CEO Renaud Adams said. “The New Afton team continues to advance development of the C-Zone, with commencement of production expected in the second half of 2023.”

“I would like to express my gratitude to our team, communities, partners, and the Ministry for their collaborative efforts to complete this permitting process.”

New Gold began construction and development of the New Afton Mine – at the site of the historic Afton open pit mine – in 2007, with commercial production getting underway in July 2012.

While the mine was first expected to close in 2024, development at C-Zone is a key to New Gold’s plan to extend the mine’s life to 2030.

According to company estimates from 2020, the mine employs about 500 people and brings about $100 million per year into the local economy.