BLACKWATER GOLD PROJECT

APPLICATION FOR AN
ENVIRONMENTAL ASSESSMENT CERTIFICATE /
ENVIRONMENTAL IMPACT STATEMENT
ASSESSMENT OF POTENTIAL ENVIRONMENTAL EFFECTS

Appendix 5.3.5A
Numerical Groundwater Monitoring
Report

Section 5
 NEW GOLD INC.
BLACKWATER GOLD PROJECT

NUMERICAL GROUNDWATER MODELLING

REPORT

PREPARED FOR:
New Gold Inc.
Suite 1800, Two Bentall Centre
555 Burrard Street
Vancouver, BC, V7X 1M9

PREPARED BY:
Knight Piésold Ltd.
Suite 1400 – 750 West Pender Street
Vancouver, BC V6C 2T8 Canada
p. +1.604.685.0543 • f. +1.604.685.0147

VA101-457/6-13
Knight Piésold
Rev 0 CONSULTING
January 17, 2014 www.k n i g h t p i e s o l d .com
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EXECUTIVE SUMMARY

Knight Piésold Ltd. (KP) was retained by New Gold Inc. (New Gold) to provide a representation of
baseline groundwater conditions and to evaluate potential effects of the Blackwater Gold Project (the
Project) on hydrogeological conditions. To achieve this objective, a three-dimensional steady-state,
regional-scale numerical groundwater model was developed using MODFLOW-SURFACT to
simulate baseline hydrogeological conditions at the Project site. The baseline model was then
modified to include proposed mine facilities in order to assess hydrogeological conditions during
mine operations, mine closure, and the post-closure period.
The steady-state baseline model was calibrated to average annual hydrogeologic conditions. The
modelled area encompasses the project site and surrounding drainages, including Davidson Creek,
Turtle Creek, Creek 661, Creek 705 and a portion of Chedakuz Creek. The calibrated baseline
model was then modified to create three numerical Mine Effects Models representing key phases of
Project development:
 A transient Operations Model
 A transient Closure/Post-Closure model, and
 A steady state Post-Closure Model.
Baseline Model and Calibration
The baseline model was calibrated to average annual groundwater elevations at 18 on-site
groundwater monitoring wells, 22 vibrating wire piezometers and to estimates of average annual
baseflow at 14 locations within the study area. Baseflow estimates were obtained from the results of
a baseline watershed model developed for the Project (KP 2013f). The baseline model was
successfully calibrated by iteratively adjusting hydraulic conductivity and groundwater recharge
values until a suitable match between observed and simulated conditions was achieved. Recharge
applied to the calibrated baseline model was varied according to the distribution of surficial materials
and elevation. The calibrated model achieved groundwater levels with a normalized root mean
square error of 2%.
The simulated baseline water table generally mimics the surface topography with groundwater
elevations ranging from 1,760 meters above sea level (masl) in the high elevation region west of the
mine site to 920 masl at the downstream extent of the modelled Chedakuz Creek. Within the active
model domain, groundwater recharge occurs along topographic highs and flows to groundwater
discharge zones located within the valleys.
Mine Effects Models and Predicted Effects on Hydrogeological Conditions
Proposed major mine facilities were represented in the mine effects models, including the open pit,
Tailings Storage Facility (TSF), east and west waste rock dumps, a Low-Grade Ore (LGO) stockpile,
a freshwater reservoir and seepage collection measures consisting of an Environmental Control Dam
(ECD), groundwater interception trenches and engineered drainage ditches. The TSF facility was
represented using boundary conditions specified on the top layer of the model and included discrete
representation of the supernatant ponds, tailings beach and TSF embankments.
From model results, reductions in groundwater flow contributing to the Blackwater River catchment
were predicted to be negligible at the end of active dewatering. Average annual baseflow
3
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than baseline conditions at the end of active dewatering (Year 13) and to be the same as baseline
conditions in Post-Closure.
Open Pit and Pit Lake Simulation Results
A transient Operations Model was constructed to assess hydrogeologic conditions associated with
active mine dewatering and to simulate groundwater inflow rates to the open pit. Results of the
Operations Model indicate that simulated groundwater inflow rates to the proposed open pit during
operational dewatering are expected to increase from the start of operations through Year 13 as the
open pit increases in size and depth. Annual average inflows to the open pit were estimated to be
50 L/s with a maximum annual inflow rate of approximately 60 L/s.
During closure and after pit filling, groundwater elevations directly surrounding the Pit Lake are
expected to recover to the elevation of the Pit Lake water surface. Modelled groundwater inflow to
the Pit Lake during Post-Closure when the Pit Lake is at its maximum elevation is predicted to be
4.5 L/s. Seepage from the Pit Lake is predicted to be 1.3 L/s. Model results indicate that seepage
from the Pit Lake is expected to contribute to the Davidson Creek and Creek 661 watersheds and
not to the Blackwater River catchment.
Pit Filling Simulation Results
A transient Closure/Post-Closure Model was developed to estimate the length of time for the Pit Lake
to fill to the open pit spillway elevation, taking into account both the open pit volume and the loss of
incoming water to the groundwater system. The Pit Lake was estimated to fill 21 years after the end
of operational dewatering. This prediction assumes that water is pumped to the Pit Lake from TSF
Site D a rate of 362 L/s to assist groundwater inflows in rapid pit filling.
Seepage Pathway Assessment
A seepage analysis was conducted to assess pathways of potential seepage originating from the
proposed mine facilities including, the TSF, Pit Lake, east and west waste rock dumps and the plant
site. MODPATH particle tracking was implemented to delineate flow directions and estimate
seepage travel times to discharge locations from key mine infrastructure. Results are presented
showing the estimated groundwater seepage pathways from each facility, the discharge location of
seepage pathways, and seepage travel times. Seepage flux rates from facilities to downstream
discharge locations were estimated by generating a water budget for each facility using the
Hydrostratigraphic Unit (HSU) package in Groundwater Vistas combined with the results of the
MODPATH particle tracking.
From model results, all seepage originating from the west waste rock dump and the plant site was
predicted to be collected or discharge to drainages that flow to the TSF. Seepage was predicted to
bypass seepage collection measures and discharge to downstream locations from these facilities:
 Approximately 0.4 L/s of seepage originating from TSF Site D was predicted to bypass seepage
collection measures and discharge to Davidson Creek. Approximately 0.2 L/s seepage was
predicted to discharge to Creek 661 and 0.1 L/s was predicted to discharge to the TSF spillway
channel.
 Seepage of 0.5 L/s originating from the Pit Lake was predicted to travel along local groundwater
flow paths through the upper bedrock and discharge to Creek 661 with travel times of tens of

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years. A small portion of seepage (0.01 L/s) was predicted to discharge to Davidson Creek
following travel paths though deep bedrock with travel times exceeding 400 years.
 A seepage amount of 1.7 L/s from the east waste rock dump was predicted to flow within the
overburden and shallow bedrock under the engineered drainage ditches and discharge to
Creek 661.
The results of baseline and mine operations numerical groundwater models were used to inform
environmental effects assessment as part of the EIA submission.

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TABLE OF CONTENTS

PAGE

EXECUTIVE SUMMARY........................................................................................................................ I

TABLE OF CONTENTS ......................................................................................................................... i

1 – INTRODUCTION ............................................................................................................................. 1
1.1 PROJECT DESCRIPTION .................................................................................................... 1
1.2 NUMERICAL MODELLING OBJECTIVES ........................................................................... 1
1.3 BASELINE DATA SOURCES ............................................................................................... 1

2 – CONCEPTUAL HYDROGEOLOGIC MODEL ................................................................................ 4

2.1 PHYSIOGRAPHY AND DRAINAGE ..................................................................................... 4
2.2 CLIMATE............................................................................................................................... 4
2.3 GEOLOGIC MODEL ............................................................................................................. 5
2.3.1 Geomorphology ....................................................................................................... 5
2.3.2 Surficial Geology ...................................................................................................... 5
2.3.3 Bedrock .................................................................................................................... 8
2.3.4 Geologic Structure ................................................................................................... 9
2.4 HYDROGEOLOGY ............................................................................................................. 11
2.4.1 Hydrostratigraphic Units ......................................................................................... 11
2.4.2 Flow Direction and Gradient .................................................................................. 17

3 – BASELINE NUMERICAL MODEL ................................................................................................. 18

3.1 OVERVIEW ......................................................................................................................... 18
3.2 MODEL GEOMETRY AND GRID ....................................................................................... 18
3.3 HYDRAULIC CONDUCTIVITY ........................................................................................... 22
3.4 BOUNDARY CONDITIONS ................................................................................................ 23
3.4.1 No-Flow Boundary ................................................................................................. 23
3.4.2 Constant Head Boundaries .................................................................................... 23
3.4.3 General Head Boundary ........................................................................................ 24
3.4.4 Drain Boundaries ................................................................................................... 24
3.4.5 Faults ..................................................................................................................... 24
3.4.6 Meteoric Recharge ................................................................................................. 24
3.5 BASELINE MODEL CALIBRATION.................................................................................... 28
3.5.1 Hydraulic Head Targets ......................................................................................... 28
3.5.2 Baseflow Targets ................................................................................................... 29
3.6 BASELINE MODEL RESULTS ........................................................................................... 33

4 – MINE OPERATIONS SIMULATION.............................................................................................. 36

4.1 OVERVIEW ......................................................................................................................... 36
4.2 PROJECT DESCRIPTION .................................................................................................. 36
4.3 MODEL DISCRETIZATION ................................................................................................ 37
4.3.1 Model Grid, Initial Heads and Stress Periods ........................................................ 37

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4.3.2 Hydraulic Conductivity ........................................................................................... 39

4.3.3 Storage and Specific Yield ..................................................................................... 39
4.3.4 Boundary Conditions .............................................................................................. 39
4.4 SIMULATION RESULTS .................................................................................................... 40

5 – CLOSURE/POST-CLOSURE SIMULATION ................................................................................ 45

5.1 OVERVIEW ......................................................................................................................... 45
5.2 MODEL DEFINITION .......................................................................................................... 45
5.2.1 Model Geometry and Grid ...................................................................................... 45
5.2.2 Stress Periods ........................................................................................................ 45
5.2.3 Initial Head Distribution .......................................................................................... 45
5.2.4 Hydraulic Conductivity and Storage ....................................................................... 46
5.2.5 Boundary Conditions .............................................................................................. 46
5.3 SIMULATION RESULTS .................................................................................................... 46

6 – POST-CLOSURE SIMULATION ................................................................................................... 50

6.1 OVERVIEW ......................................................................................................................... 50
6.2 MODEL DEFINITION .......................................................................................................... 50
6.2.1 Model Geometry and Grid ...................................................................................... 50
6.2.2 Boundary Conditions and Hydraulic Conductivity .................................................. 50
6.3 SIMULATION RESULTS .................................................................................................... 50
6.4 SEEPAGE PATHWAY ANALYSIS ..................................................................................... 52
6.4.1 Seepage Flow Directions and Travel Times (MODPATH Particle Tracking) ........ 52
6.4.2 Seepage Flux Rates (HSU Mass Balance) ............................................................ 52
6.4.3 Seepage Analysis Results ..................................................................................... 52

7 – CONCLUSIONS AND RECOMMENDATIONS ............................................................................. 57

7.1 CONCLUSIONS .................................................................................................................. 57
7.2 RECOMMENDATIONS ....................................................................................................... 58

7.0 REFERENCES .......................................................................................................... 59

8.0 CERTIFICATION ....................................................................................................... 61

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TABLES

Table 2.1 Hydraulic Conductivity Test Results ............................................................................. 14

Table 3.1 Baseline Model Hydraulic Conductivity Values ............................................................ 22
Table 3.2 Calibrated Recharge Values by Zone .......................................................................... 28
Table 3.3 Observed and Simulated Hydraulic Heads .................................................................. 30
Table 3.4 Baseflow Calibration Results ........................................................................................ 31
Table 4.1 Groundwater Extraction Well Details ............................................................................ 40
Table 5.1 Closure/Post-Closure Model Stress Periods ................................................................ 45
Table 6.1 Results of MODPATH Particle Tracking and Advective Travel Times ......................... 56

FIGURES

Figure 1.1 Project Location Map ...................................................................................................... 3

Figure 2.1 Conceptual Geologic Model of Davidson Creek Valley .................................................. 6
Figure 2.2 Inferred Faults within the Deposit Area ........................................................................ 10
Figure 2.3 Hydraulic Conductivity with Depth in Bedrock (Inferred Higher Permeability
Zone in the Deposit Area) ............................................................................................ 15
Figure 2.4 Hydraulic Conductivity with Depth in Bedrock (Inferred Lower Permeability
Zone in the Deposit Area) ............................................................................................ 16
Figure 3.1 Study Area Boundary ................................................................................................... 20
Figure 3.2 Numerical Grid, Layers and Boundary Conditions (Layer 1) ........................................ 21
Figure 3.3 Hydraulic Conductivity Zones (Layer 1) ....................................................................... 26
Figure 3.4 Groundwater Recharge Zones (Layer 1)...................................................................... 27
Figure 3.5 Observed versus Simulated Hydraulic Head................................................................ 32
Figure 3.6 Simulated Water Table Contour Map ........................................................................... 34
Figure 3.7 Simulated Hydraulic Head Distribution (Cross Section) ............................................... 35
Figure 4.1 Operations Model Numerical Grid, Layers and Boundary Conditions (Layer 1) .......... 38
Figure 4.2 Operations Model Groundwater Elevation Map (Year 13) ........................................... 42
Figure 4.3 Operations Model Predicted Open Pit Groundwater Drawdown .................................. 43
Figure 4.4 Predicted Pit Inflow Rates: Numerical Model and Analytical Calculation ..................... 44
Figure 5.1 Closure/Post-Closure Model Simulated Groundwater Elevation Map ......................... 48
Figure 5.2 Closure/Post-Closure Simulated Pit Lake Storage Volume ......................................... 49
Figure 6.1 Closure/Post-Closure Model Simulated Groundwater Elevation Map ......................... 51
Figure 6.2 MODPATH Particle Discharge Locations ..................................................................... 55

APPENDICES

Appendix A Appendix Figures

Appendix B Numerical Model Hydraulic Conductivity Zones
Appendix C General Arrangements
Appendix D MODPATH Particle Simulation Results

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ABBREVIATIONS

Project ................................................................................................... Blackwater Gold Project

DEM ......................................................................................................... digital elevation model
ECD ................................................................................................ Environmental Control Dam
GM ....................................................................................................................... Global Mapper
GWV ............................................................................................................ Groundwater Vistas
HSU ......................................................................................................... hydrostratigraphic unit
KP ......................................................................................................................... Knight Piésold
LGO .................................................................................................................... Low Grade Ore
LPG .................................................................................................... low-permeability subgrade
MAE .............................................................................................................mean absolute error
masl ........................................................................................................ meters above sea level
mbgs ............................................................................................. meters below ground surface
NAG ............................................................................................non-potentially acid generating
NRMSE ................................................................................ normalized root mean square error
NTS ................................................................................................. national topographic system
PAG ................................................................................................... potentially acid generating
RMSE ...................................................................................................... root mean square error
TSF ....................................................................................................... Tailings Storage Facility

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1 – INTRODUCTION

1.1 PROJECT DESCRIPTION

The Blackwater Gold Project (Blackwater) is a large gold-silver deposit located approximately 112 km
southwest of Vanderhoof in central British Columbia, as shown on Figure 1.1. The proposed project
involves a conventional truck-shovel open pit mine and 60,000 tonnes per day (TPD) gold processing
plant. Proposed mine facilities will be located primarily in the Davidson Creek watershed and the
headwaters of the Creek 661 watershed.
Knight Piésold Ltd. (KP) was contracted by New Gold to assist with studies in support of an
Environmental Impact Assessment (EIA) and a Feasibility Study. Part of this assessment includes a
numerical groundwater modelling study to support baseline hydrogeologic characterization of the project
area and to evaluate potential effects of proposed mine facilities on baseline hydrogeological conditions.

1.2 NUMERICAL MODELLING OBJECTIVES

The objectives of the numerical groundwater modelling were to:
1. Develop a conceptual understanding of the pre-project groundwater system based on the available
hydrogeological and hydrologic data.
2. Develop and calibrate a baseline numerical groundwater model to simulate pre-development
hydrogeological conditions including groundwater flow directions, distribution of hydraulic head, and
discharge of groundwater to creeks within the study area.
3. Predict potential effects of the proposed mine development and operations on pre-development
hydrogeological conditions in the project area.
4. Characterize potential groundwater flow pathways for seepage originating from major mine facilities,
including estimates of groundwater travel times and seepage rates to downstream discharge
locations.
To achieve these objectives, a steady-state baseline numerical model was developed and calibrated to
simulate baseline hydrogeological conditions at the project site. Using the calibrated model as a basis,
three numerical models were then developed to assess potential effects of proposed mine development
on pre-development hydrogeological conditions. The three ‘Mine Effects Models’ represent mine
development and infrastructure during the following key phases of the Project:
 Operations Model: A transient model representing the time period that the open pit will be actively
dewatered (Year -2 through Year 13)
 Closure/Post-Closure Model: A transient model representing end of mine conditions through Closure
(Year 20) and into Post-Closure, and
 Post-Closure Model: A steady state model representing Post-Closure conditions during which the
open pit and TSF are discharging water via their respective spillways.
Results of the numerical models will be used to inform the EIA.

1.3 BASELINE DATA SOURCES

Baseline characterization of the Blackwater Project relies on hydrometeorological, geological,
geomorphological, and hydrogeological data previously presented within the following reports:

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 Reconnaissance Terrain and Terrain Stability Mapping – Reconnaissance Terrain and Terrain
Stability Mapping (KP 2013a)
 2012 Site Investigations – 2012 Site Investigation Report (KP 2013b)
 Open Pit Investigation – Feasibility Open Pit Slope Design Report (KP 2013c)
 Hydrology and Meteorology Data – 2013 Hydrometeorology Report (KP 2013d)
 2013 Site Investigations – 2013 Site Investigation Report (KP 2013e)
 Watershed Modelling – Watershed Modelling Report (KP 2013f)
 Geotechnical Characterization – Geotechnical Characterization Report (KP 2013g), and
 Open Pit Hydrogeology – Open Pit Water Management Report (KP 2013h).
Average annual streamflows estimated using the watershed model developed for the Project (KP 2013f)
were used as calibration targets in the baseline numerical model. Conceptual hydrogeologic models
developed as part of the watershed modelling study (KP 2013f) and open pit inflow assessment
(KP 2013h) were incorporated into the conceptual hydrogeologic model developed for the numerical
groundwater model in this study.

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Figure 1.1 Project Location Map

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2 – CONCEPTUAL HYDROGEOLOGIC MODEL

2.1 PHYSIOGRAPHY AND DRAINAGE

The Blackwater Project is situated on the Nechako Plateau and is characterized by gently undulating,
northwest trending hills cut by small to medium sized drainages. Elevation across the Blackwater
property ranges from just over 1,000 metres above sea level (masl) in low-lying areas northeast of the
proposed mine site to 1,800 masl at the summit of Mt. Davidson on the southwest side of the property.
The Blackwater deposit is located on the northern flanks of Mt. Davidson.
The Blackwater Project is situated primarily within the Davison Creek watershed and the headwaters of
the Creek 661 watershed. Davidson Creek and Creek 661 flow northeast to Tatelkuz Lake which is
drained by northwesterly flowing Chedakuz Creek. Mt. Davidson creates a drainage divide between
northeast flowing Davidson Creek and Creek 661, southwest flowing Creek 705, and south flowing
tributaries to Blackwater River (See Figure A.1 in Appendix A). Seeps and wetlands are common along
the lower slopes of Mt. Davidson. Major drainage features are shown on Appendix Figure A.1.
The majority of the proposed TSF, waste dumps, and mine site infrastructure lies within the Davidson
Creek watershed. The footprint of the proposed Tailings Storage Facility (TSF) lies within the upper
reaches of the Davidson Creek catchment area. The terrain within this footprint is predominantly gently
inclined, except along the incised portions of Davidson Creek.
Streamflow data within the project area are available from hydrometric stations established for the Project
on Davidson Creek, Creek 661, Creek 705 and Turtle Creek (KP 2013d). Streamflows are typically
highest in the spring associated with snowmelt with a second smaller peak frequently associated with fall
rain events. Low flows occur in the winter months preceding freshet and are fed by groundwater.
Groundwater contribution to streamflow (baseflow) within several sub-catchment along each major
drainage course have been estimated using a watershed model constructed for the Project (KP 2013f).

2.2 CLIMATE
Climate at the Blackwater property is sub-continental and characterized by warm summers and cold
winters. The climate is influenced by cold arctic air and moisture-laden weather systems moving west
along the Kitimat Ranges. Meterological parameters estimated for the Project have been estimated using
data collected at two climate stations in the immediate project area and correlated with data from regional
climate stations, and estimates based on watershed modelling conducted for the Project (KP 2013f).
Mean monthly temperatures range from -7.7°C in January to 12.5°C in July at the project elevation of
1,470 masl (KP 2013d). Watershed modelling results indicate the average annual precipitation calculated
from 1998 through 2012 is 640 mm at the project site elevation (KP 2013f). An equal proportion of
precipitation is estimated to fall as rain and as snow. Watershed model results also estimate the mean
annual potential evapotranspiration (PET) at 470 mm and actual evapotranspiration (AET) at 280 mm.
Average groundwater recharge across the modelled areas was estimated as 11% of total precipitation (an
equivalent area weighted average depth of 70 mm) based on the results of the watershed model
(KP 2013f).

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2.3 GEOLOGIC MODEL

The geological model for Blackwater is summarized below. Detailed descriptions of the study area
geomorphology, surficial geology, and bedrock geology are provided in the Blackwater Geotechnical
Characterization Report (KP 2013g), and the Open Pit Water Management report (KP 2013h).

2.3.1 Geomorphology
Surficial deposits and landforms in the project area are primarily associated with the Fraser Glaciation,
the last period of continental ice sheet glaciation in British Columbia. Surficial landforms such as
drumlins, eskers and other streamlined glacial landforms evidence that the localized ice flow direction in
the project area at the peak of glaciation was toward the northeast (KP 2013a). Glacial ice appears to
have stagnated in Davidson Creek valley during late deglaciation producing ice‐stagnation landforms
such as kettles and kames. Esker complexes are present on the north sides of Davidson Creek and the
headwaters of Creek 661. Meltwater channels provide evidence for water flow beneath and from the
margin of the receding ice sheet and major meltwater channels have a northeast trend. The valleys of
both Davidson Creek and Creek 505659 (a headwater tributary to Creek 661) contain a succession of
meltwater channels, expressed by a series of up to six terraces. The terraces provide evidence of
sequential downcutting by meltwater streams. An estimated 80% of the surficial materials in the
Davidson Creek valley is classified as lodgement glacial till (Plouffe
et. al. 2004), with the other 20% made up of ablation till, glaciofluvial, glaciolacustrine, fluvial, and organic
material. Ablation till is uncommon and predominantly found at higher elevations on the valley sides.
Bedrock exposure in the project area is rare and restricted to higher elevations. Soil cover is generally
thick within the Davidson Creek watershed and has an average thickness greater than 60 m (KP 2013g).
Bedrock is deepest along the Davidson Creek valley bottom and east of the deposit, where it was
encountered at depths of over 100 m.

2.3.2 Surficial Geology

The surficial geology model for the project area was developed based on the findings from the 2012 and
2013 Geotechnical Site Investigations (KP 2013be) and a review of these findings by Dr. John Clague,
P. Geo. of the Department of Earth Sciences at Simon Fraser University (Clague 2013). The stratigraphy
of the surficial materials and bedrock from surface downward consists of the following:
 Holocene Deposits
 Fraser Glaciation Deposits
o Glaciofluvial Deposits
o Glacial Till
o Glaciolacustrine Deposits
 Interglacial Fluvial Deposits
 Older Glacial Deposits (primarily glacial till from an earlier period of glaciation)
 Reworked Regolith
 In-situ Regolith, and
 Intact Bedrock.
The surficial materials are depicted in a conceptual cross-section of the Davidson Creek valley in
Figure 2.1. The distribution of the surficial materials at the project site is shown on

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Appendix Figure A.2. A summary of each unit comprising the surficial geology model in the Geotechnical
Characterization Report (KP 2013g) and Clague (2013) is summarized below.

Figure 2.1 Conceptual Geologic Model of Davidson Creek Valley

2.3.2.1 Holocene Deposits

Recent surficial deposits consist of fluvial gravels, sands, and silts within the major drainage channels as
well as organic material within floodplains and wetlands. The landscape in the valley bottoms is
dominated by marshes and shallow lakes filled with organic sediments formed from decaying marsh
vegetation. Accumulations of peat are present in areas where drainage was restricted during the post-
glacial period.

2.3.2.2 Fraser Glaciation Deposits

The Fraser Glaciation sequence at the Blackwater Project includes glaciofluvial deposits, glacial till and
glaciolacustrine deposits as outlined below.
 Glaciofluvial deposits - These deposits include kame, esker, and meltwater channel deposits:
o Kame deposits were formed from non-channelized glaciofluvial deposits. Kame deposits have a
significant proportion of silt and are inferred to have lower permeability than channel deposits.
Kame deposits of various thicknesses occur around Davidson Creek in areas of shallow relief
above the creek valley.
o Glaciofluvial esker deposits extend north in the Chedakuz valley and on the western margin of
the Top Lake valley as it cuts through the Fawnie Range. Glaciofluvial esker deposits are well-
graded, coarse-grained sands and gravels with a low proportion of fines.
o Meltwater deposits consist predominantly of coarse-grained sands and gravels with trace fines
and cobbles. These deposits were formed by meltwater runoff from the advancing and retreating
ice sheet and within subglacial cavities and channels.

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 Glacial Till Deposits - Glacial till deposits are the most dominant surficial material in the region and
consist of compact to very dense lodgement till with uncommon loose to compact ablation till. Glacial
till thickness is variable, ranging from a few to tens of metres. The material is predominantly well
graded, stiff to very dense, sandy silt to silty sand with some gravel and trace clay and cobbles.
Lodgement till is dense or stiff and contains a significant percentage of fines (silt and clay) that greatly
lowers the permeability. Ablation till is less dense and may contain less fines. Lodgement till was the
dominate material encountered in the valley basin of the Davidson Creek watershed, and ablation till
is found in a few locations on site at higher elevations on the valley sides.
 Glaciolacustrine Deposits - Glaciolacustrine sediments were deposited locally in an ephemeral lake
that formed between the advancing Cordilleran ice sheet and higher ground to the west and south.
Sediment‐laden meltwater flowing along the margin of the ice sheet entered the lake, and silt-sized
particles settled out of suspension onto the lake bed. The lake was overridden by the advancing
Fraser ice sheet, which terminated glaciolacustrine deposition and compacted the deposits.
Glaciolacustrine deposits up to 20 m thick were identified in most of the drill holes in the upper
Davidson Creek valley (KP 2013g). The glaciolacustrine deposits are very dense, massive sandy silt,
and did not exhibit any fine laminated layers or weaker clayey laminations. Glaciolacustrine deposits
consist of massive silts with trace clay, sand, and poorly graded gravel. Where encountered,
glaciolacustrine layers consistently lie below the Fraser glacial till deposits.

2.3.2.3 Interglacial Fluvial Deposits

During the interglacial period, deposition of fluvial sediments consisting of sands and gravels would be
expected within major drainage valleys such as Davidson Creek valley (Clague 2013). The interglacial
deposit would lie below the glaciolacustrine unit from the Fraser glacial sequence and above older glacial
sediments. Interglacial fluvial deposits at the contact between deposits from the two glacial periods are
described as absent or thin in drill core collected within Davidson Creek valley (KP 2013g). The absence
of a continuous sand and gravel deposit cannot be explained by subsequent glacial erosion, as the
overlying glaciolacustrine sediments would have also been eroded. Data collected as part of the 2012
and 2013 geotechnical investigations removes the potential for a widespread sand and gravel deposit
(KP 2013g). Where encountered, glaciofluvial deposits of the interglacial unit were described as localized
and as discontinuous lenses, which suggest that Davidson Creek was a minor stream with limited extent
during the interglacial period.

2.3.2.4 Older Glacial Till Deposits

An older glacial sequence predominantly composed of glacial till and rare interbedded glaciofluvial and
glaciolacustrine deposits lies below the Fraser glacial deposits or locally below interglacial deposits.
These glacial deposits are similar in composition to the Fraser glacial till deposits and are
indistinguishable by field description and laboratory particle size testing.

2.3.2.5 Reworked Regolith (Reworked Completely Weathered Bedrock) and In-situ Regolith
(Completely Weathered Bedrock)
The older glacial sequence rests on reworked and in-situ regolith horizon (completely weathered
bedrock). The reworked regolith comprises poorly graded sediments containing abundant weathered
bedrock clasts. It is presumed that gravitational processes and recorded landscape instability controlled

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the deposition, potentially during the onset of cold climatic conditions during the early
Pleistocene, ca. 2.6 Ma.
The original bedrock texture or fabric was evident in in-situ regolith in the majority of drill holes advanced
within Davidson Creek valley. The boundary between the reworked and in‐situ regolith is difficult to
discern in all drill holes. The reworked and in-situ regolith was found to range in thickness from a few
metres to over 30 m, with an average thickness of approximately 15 m. The regolith is thin or absent in
topographically high areas and thicker within topographic lows, indicating that the Davidson Creek
watershed may have been shielded from glacial erosion. A wide range of gradation is observed,
indicative of the various states of decomposition of the weathered bedrock. The presence of this stratum
is unusual in British Columbia, as it is typically scoured by the process of glaciation. A white to light
brown zone of silt and clay sized sediments near the top of the layer is either a soil horizon or a
weathered tuff (volcanic ash).

2.3.3 Bedrock
Geology in the project area consists of a lower unit of Upper Jurassic volcaniclastic, sedimentary, and
mafic to felsic volcanic rocks of the Bowser Lake Group. The Bowser Lake group are intruded by Late
Cretaceous granitic to granodioritic plutons. Widespread Eocene volcanic arc-related extensional felsic
volcanic rocks and minor sedimentary rocks of the Ootsa Lake Group overlie the Bowser Lake Group and
are themselves overlain on higher ridges by basalt and andesite of the Eocene Endako Group. Intact
bedrock exposure is rare and restricted to higher elevations in the area.
Bedrock geology encountered during site investigations conducted in the Davidson Creek watershed
consists of an andesite from the Cenozoic Ootsa Lake Formation and fragmentals volcanics from
Cretaceous Volcaniclastics and Flows (KP 2013b,e). Bedrock in the west part of the TSF footprint also
belongs to the Ootsa Lake Formation, but comprises rhyolites and felsic volcanic rocks. The bedrock in
the southeast portion of the project area, including the deposit area, is rhyolites and felsic volcanic rocks
of the Entiako Formation, which belongs to the Middle Jurassic Hazelton Group. Bedrock to the west is
basement rock from the Bowser Lake Group (KP 2013b,c,e).
Bedrock geology in the project area is shown on Appendix Figure A.3. The bedrock geology encountered
during site investigations conducted in the Davidson Creek watershed consists of andesite from the
Eocene Ootsa Lake Formation and fragmentals volcanics from Cretaceous Volcaniclastics and Flows
(KP 2013b,e). Bedrock in the west part of the TSF footprint also belongs to the Ootsa Lake Formation
but is comprised of rhyolites and felsic volcanic rocks.
The bedrock in the deposit area consists of rhyolites and felsic volcanic rocks of the Entiako Formation,
which belongs to the Middle Jurassic Hazelton Group (KP 2013c). Bedrock to the west of the deposit is
basement sedimentary rock from the Bowser Lake Group.
Bedrock beneath the regolith is characterized by a weathering profile that is distinguished based on rock
characteristics such as discolouration, intactness, weakness and clay content. The weathered bedrock
transition from highly to moderately to slightly weathered with increasing depth is accompanied by an
increase in intactness and decrease in clay infill (KP 2013b,e).
A bedrock elevation contour map was generated using the 2012 and 2013 site investigation data
(KP 2013g) and New Gold’s 2012 condemnation drilling data as shown on Appendix Figure A.3. Intact
bedrock exposure in the area is restricted to higher elevations. Bedrock was encountered at depths

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greater than 100 m below ground surface (mbgs) in drill holes advanced on the eastern slope of
Mt. Davidson.

2.3.4 Geologic Structure

An inferred fault (inactive) was interpreted on the south abutment of Site D Main Dam southern extent
based on 2012 site investigation results (KP 2013b). Two drill holes (GT13-20 and GT13-21) targeted the
inferred fault during the 2013 site investigations to collect information on hydraulic conductivity and
evaluate the existence of a hydraulic pathway and determine the orientation of the fault. The fault zone
was found to be near vertical. Results of in-situ hydraulic conductivity tests conducted within the fault
-9 -7
zone ranged from 9x10 to 6x10 m/s.
New Gold geologists delineated a series of sub-vertical fault systems within the deposit area at the
locations shown on Figure 2.2. Five of these features trend northeast-southwest through the deposit, two
trend southeast-northwest through the central/east portion of the deposit, and one trends north-south
through the central part of the deposit. Drill circulation losses while drilling within the deposit area as part
of a geomechanical site investigation were attributed to drill hole locations within these faults or shear
zones (KP 2013c).

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2.4 HYDROGEOLOGY
Baseline hydrogeology data were obtained from drilling information, in-situ hydraulic conductivity testing
(packer testing and response testing), and recorded groundwater levels at monitoring wells, standpipe
piezometers, and vibrating wire piezometers (VWP). Two pumping tests were conducted in the open pit
area: one test was conducted in an area of higher permeability bedrock within the deposit and the second
test was conducted in lower permeability bedrock south of the proposed open pit footprint (KP 2013h).
Two pumping wells and 12 observation wells with multipoint VWPs were installed to support the pumping
test program.

2.4.1 Hydrostratigraphic Units

The geology in the area has been simplified into eight hydrostratigraphic units:
 Fluvial and glaciofluvial channel deposits
 Glaciofluvial kame deposits
 Glacial till deposits
 Glaciolacustrine and lacustrine deposits
 Completely weathered bedrock (in-situ and reworked regolith)
 Weathered bedrock
 Higher permeability bedrock in the deposit area, and
 Competent bedrock.
Hydraulic conductivities for each hydrostratigraphic unit based on in-situ hydraulic conductivity testing are
-9
provided in Table 2.1. Packer tests reported as no take have been presented as 1x10 m/s, and
-8
response tests with results below the measurable testing limit are presented as 1x10 m/s. Further detail
on each hydrostratigraphic unit includes:
 Fluvial and glaciofluvial channel deposits: Channel deposits include esker deposits as well as
glacial fluvial meltwater deposits and modern fluvial channel deposits. This material is characterized
by sands and gravels with little fines. One response test was conducted in a monitoring well installed
surficial material mapped as channel deposits. The hydraulic conductivity value estimated from the
-5
test of 9x10 m/s is within the lower range for loose granular deposits.
 Glaciofluvial kame deposits: Kame deposits are mapped at the surface over much of Davidson
Creek valley and in the headwater tributaries feeding Creek 661. Kame deposits consist of silty and
well-graded sand and gravel units. The geometric mean hydraulic conductivity of six response tests
-5
conducted in monitoring wells and piezometers screened in kame deposits is 4x10 m/s.
 Glacial till deposits: Lodgement till covers much of the surface in the project area and has been
encountered during site investigations over 50 m thick. Ablation till is only mapped within a few
isolated locations at higher elevations and adjacent to Davidson Creek valley. The geometric mean
hydraulic conductivity of 13 response tests conducted in monitoring wells and piezometers screened
-6
in till material is 3x10 m/s, which is at the upper limit of the expected range of hydraulic conductivity
-12 -6
values for till material of 1x10 m/s to 1x10 m/s (Freeze and Cherry 1979). Tests conducted in
wells and piezometers screened in the till layer likely provide hydraulic conductivity values that are
biasedly high since monitoring well and piezometer installations tend to target more permeable water
bearing zones. Laboratory testing of 108 till samples collected from drill holes and test pits for
particle size analysis typically reported 25 to 45% fine (5th to 95th percentile distribution) with
distributions of 5 to 50% gravel, 20 to 70% sand, 10 to 50% silt, and 0 to 17% clay (KP 2013g).

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-11
Results of laboratory permeability testing of till samples reported permeability ranges of 10 to
-7 -8 -6
10 m/s for 27 constant head tests and 10 to 10 m/s for 7 falling head tests. A hydraulic
conductivity estimate using the mean grain size distribution of the tests and the Kozeny-Carman
-8
equation (Carman 1956) is 4x10 m/s, which falls within the range of laboratory tested values. A
-7
hydraulic conductivity value of 1x10 m/s has been adopted as a representative value for a till deposit
based on laboratory testing of the till material and grain size distributions.
 Glaciolacustrine and lacustrine deposits: Glaciolacustrine sediments consist of thinly-bedded
sandy silt, gravelly silt, and silt. Glaciolacustrine sediments are present beneath the upper till layer in
Davidson Creek valley. Recent lacustrine deposits are present at the surface beneath a few isolated
lakes, such as Tatelkuz Lake. One response test was conducted in sediments identified as lacustrine
-8
(MW12-06D), which resulted in a hydraulic conductivity estimate of <1x10 m/s. Laboratory testing of
40 glaciolacustrine samples collected from drill holes and test pits for particle size analysis typically
reported 60 to 95% fines (5th to 95th percentile distribution) within the samples.
 Bedrock: Bedrock within the model is assumed to be a homogeneous unit even though several types
of bedrock are present at the study site. This approach is considered sufficient for the purpose of this
hydrogeology assessment. Results of hydraulic conductivity tests conducted in bedrock are plotted
with depth on Figures 2.3 and 2.4. Bedrock at the project site is divided into units according to
weathering and intactness:
o Completely weathered bedrock: Completely weathered bedrock (in-situ regolith and reworked
regolith) consists of a silt and clay matrix with abundant weathered bedrock clasts. This unit is
inferred to be present only in Davidson Creek valley. Laboratory testing of
32 in-situ and reworked regolith samples collected from drill holes for particle size analysis
reported 20 to 85% fines (5th to 95th percentile distribution within the samples. No in-situ
hydraulic conductivity tests were conducted exclusively within this unit; completion zones of
monitoring wells screened in the completely weathered bedrock unit also spanned the contact
with the overlying sand and gravel unit. The completely weathered bedrock unit is expected to be
-8
a low permeability unit with a representative hydraulic conductivity of approximately 1x10 m/s.
o Weathered bedrock: The profile of weathering within the bedrock was distinguished based on
characteristics of rock fracture spacing, intactness, and discolouration noted on drill core
(KP 2013b,e). The weathering profile grades from highly weathered to moderately weathered to
slightly weathered with depth. Hydraulic conductivity test results conducted in weathered
bedrock within drill holes located outside the deposit area are provided in Table 2.1. Results only
include tests conducted a distance from the deposit area so the hydraulic conductivity statistics
are not influenced by tests conducted within higher permeability bedrock found in the deposit
area (see discussion below). The maximum depth of tests conducted in weathered bedrock was
generally less than 60 m below the top of the bedrock surface, although testing in one drill hole
extended to a depth of 90 m below top of bedrock. The geometric mean hydraulic conductivity
-8 -8
increases slightly as weathering in the bedrock decreases from 4x10 to 7x10 m/s. This
increase in hydraulic conductivity is attributed to a decrease in clay infill within the weathered
spaces (Deer and Patton 1971). Only response tests could be conducted in the highly weathered
bedrock zone since difficulty seating the packer prohibited packer testing within the zone. The
lower portion of the weathered bedrock is considered to be a permeable pathway and a hydraulic
-7
conductivity of 1x10 m/s is considered representative for this zone.
o Higher permeability bedrock zone in the deposit area: Results of in-situ hydraulic conductivity
testing and pumping tests indicate bedrock within the central portion of the deposit area has a

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higher permeability than the surrounding bedrock. The extent of this area is estimated in the
Open Pit Water Management Report (KP 2013h) and is closely, but not exactly, related to the
‘broken zone’ in the Feasibility Open Pit Slope Design Report (KP 2013c). A bulk hydraulic
-6
conductivity of 5x10 m/s was estimated for this higher permeability bedrock zone based on the
results of a pumping test. (KP 2013h). The area of the higher permeability bedrock is inferred to
be approximately 1 km wide and to extend to depths of 500 m below the bedrock surface. The
higher permeability bedrock zone is mainly located within the limits of the proposed open pit and
will be excavated during mining operations.
o Competent bedrock: Competent bedrock is present everywhere beneath the weathered
bedrock. Hydraulic conductivity tests were conducted within deeper bedrock in the deposit area
as part of open pit site investigation (KP 2013c). The geometric mean hydraulic conductivity of
-8
45 packer tests conducted in drill holes surrounding the open pit is 8x10 m/s. A bulk hydraulic
-7
conductivity of 1x10 m/s was estimated for the lower permeability bedrock zone surrounding the
deposit based on the results of a pumping test (KP 2013h). Given the proximity of the packer
and pumping test to the higher permeability bedrock associated with the deposit, these test
results for deeper bedrock are expected to be higher than elsewhere across the project site. Drill
holes for the geotechnical site investigations were advanced to depths until two consecutive
-7
packer tests yielded an estimated hydraulic conductivity value on the order of 10 m/s or less. As
a result, tests from these site investigations are generally not considered to be part of the intact
bedrock unit. Hydraulic conductivity in the competent bedrock is assumed to decrease with
-8
depth. A bulk hydraulic conductivity of 2x10 m/s is considered to be a representative value for
the upper portion of the competent bedrock zone.

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Table 2.1 Hydraulic Conductivity Test Results

Response Packer Airlift Log Pumping

Unit Tests Tests Tests Minimum Maximum Mean Test
(No.) (No.) (No.) (m/s) (m/s) (m/s) (m/s)
Glaciofluvial -Channel 1 - - 9E-05 9E-05 - -
Overburden

Glaciofluvial - Kame 6 - - 1E-08 1E-03 4E-05 -

Till 13 - - 5E-08 7E-04 3E-06 -
Lacustrine 1 - - 1E-08 1E-08 - -
1
Weathered Bedrock (Geotechnical Investigations)
Completely Weathered 0 - - - - - -
Highly Weathered 3 - - 2E-08 8E-08 4E-08 -
Moderately Weathered 7 10 - 1E-09 2E-05 7E-08 -
Slightly Weathered 4 65 - 1E-09 4E-06 7E-08 -
Higher Permeability Bedrock Zone in the Deposit Area
Bedrock

Geomechanical
2 - 129 - 5E-09 6E-05 8E-07
Investigations
5E-06
Hydrogeological
3 - - 30 3E-08 2E-05 9E-07
Investigation
Lower Permeability Bedrock Zone in the Deposit Area
Geomechanical
2 - 45 - 1E-09 4E-06 8E-08
Investigations
1E-07
Hydrogeological
3 31 4E-08 8E-06 3E-07
Investigation -

NOTES:
1. SOURCE: BLACKWATER 2012 GEOTECHNICAL SITE INVESTIGATION REPORT (KP 2013c) AND 2013 GEOTECHNICAL
SITE INVESTIGATION REPORT (KP 2013e).
2. SOURCE: FEASIBILITY OPEN PIT SLOPE DESIGN REPORT (2013c).
3. SOURCE: OPEN PIT WATER MANAGEMENT REPORT (KP 2013h).
4. HYDRAULIC CONDUCTIVITY TEST RESULTS REPORTED AS NO TAKE OR BELOW MEASURABLE TESTING LIMIT ARE
INCLUDED IN THE TABLE AS 1x10-8 m/s FOR RESPONSE TESTS AND 1x10-9 m/s FOR PACKER TESTS.
5. MINIMUM, MAXIMUM, AND LOG MEAN VALUES ARE CALCULATED USING RESPONSE, PACKER, AND AIRLIFT TESTING
RESULTS.

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Figure 2.3 Hydraulic Conductivity with Depth in Bedrock (Inferred Higher Permeability Zone in
the Deposit Area)
NOTES:
1. HYDRAULIC CONDUCTIVITY PACKER AND AIRLIFT TESTING RESULTS FROM KP 2013b,c,e,h.
2. DEPTHS ADJUSTED TO METERS BELOW GROUND LEVEL FOR INCLINED DRILL HOLES (KPL 2013c).
3. HYDRAULIC CONDUCTIVITY TEST RESULTS REPORTED AS NO TAKE ARE INCLUDED IN THE TABLE AS 1x10-9 m/s.

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Figure 2.4 Hydraulic Conductivity with Depth in Bedrock (Inferred Lower Permeability Zone in
the Deposit Area)
NOTES:
1. HYDRAULIC CONDUCTIVITY PACKER AND AIRLIFT TESTING RESULTS FROM KP 2013b,c,e,h.
2. DEPTHS ADJUSTED TO METERS BELOW GROUND LEVEL FOR INCLINED DRILL HOLES (KPL 2013c).
3. HYDRAULIC CONDUCTIVITY TEST RESULTS REPORTED AS NO TAKE ARE INCLUDED IN THE TABLE AS 1x10-9 m/s.

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2.4.2 Flow Direction and Gradient

Groundwater at the site flows from recharge zones located in topographic highs, such as the vicinity of
the proposed open pit, towards discharge zones located in the Davidson Creek, Turtle Creek, Creek 661
and Creek 705 valleys. Groundwater discharge to streams provides baseflow that sustains streamflow
within major drainages during the winter and early spring months. A groundwater divide is present at
Mt. Davidson that divides groundwater flow radially outward in all directions toward the Davidson Creek,
Creek 661, Creek 705 and Blackwater River watersheds.
Hydraulic heads are measured at or near ground surface within Davidson Creek valley and similar
conditions are assumed within the valleys of other major drainages. Hydraulic heads are near ground
surface along the base of Mt. Davidson as evidenced by the presence of wetlands, shallow water tables
in test pits and drill holes, and artesian conditions within exploration drill holes near the northern edge of
the deposit. Groundwater level contours are flatter within the zone of higher permeability bedrock in the
deposit (KP 2013h).
At the local scale, geologic structures (faults and fractures) are expected to influence groundwater flow
pathways and hydraulic gradients. Faults and lineaments located within the deposit area may restrict
groundwater movement along the margins of the deposit. VWPs installed within observation wells
located southwest of the higher permeability bedrock zone in the deposit area exhibit strong hydraulic
gradients in both vertical and horizontal directions, suggesting groundwater flow is compartmentalized in
the deposit area. Hydraulic heads recorded at VWPs installed within observation well PH13-4-3 differed
by 90 m.
The main groundwater flow pathway within the overburden is in the glaciofluvial and fluvial deposits. The
main flow pathway within bedrock is the lower portion of the weathered bedrock, which is generally
encountered across the site at 10 to 40 m below the top of bedrock. A completely weathered bedrock
unit characterized by a high fraction of fines content and a low permeability overlies the weathered
bedrock in Davidson Creek valley.

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3 – BASELINE NUMERICAL MODEL

3.1 OVERVIEW
A steady-state, regional-scale numerical groundwater model was developed to simulate baseline
hydrogeological conditions and to provide the basis required to assess potential effects of the Project on
the local groundwater system. The model was developed using the MODFLOW-SURFACT computer
code run in the Groundwater Vistas (version 6.20; ESI, 2011) graphical user interface. MODFLOW-
SURFACT is a three-dimensional finite-difference flow model developed by the U.S. Geological Survey
and HGL Software Systems that has become an industry standard for groundwater modelling applications
(Hydrogeologic Inc., 1996).
The baseline model was calibrated to hydraulic head data collected from on-site groundwater monitoring
wells and vibrating wire piezometers and to average annual baseflows (groundwater contribution to
streamflow) estimated using a watershed model constructed for the Project (KP 2013f).
The baseline model simulates pre-development hydrogeological conditions including groundwater flow
directions, distribution of hydraulic head and groundwater/surface water interaction on a project-site
scale. Baseline model development, calibration and results are discussed in the sections that follow.

3.2 MODEL GEOMETRY AND GRID

2
The baseline model domain encompasses an area of 349 km which includes the Blackwater Project site
as shown on Figure 3.1. The model domain includes the Davidson Creek, Turtle Creek and Creek 661 to
their confluence with Chedakuz Creek and Creek 705 to its confluence with Fawnie Creek. The model
includes headwater tributaries of the Blackwater River catchment to the south. The northeast perimeter
of the active model domain is defined by Tatelkuz Lake and Chedakuz Creek. Groundwater flow divides
are inferred to be coincident with watershed boundaries where the model perimeter is defined by the
watershed boundaries of Turtle Creek, Creek 661 and Creek 705. A small portion of the southeast model
boundary cuts through the headwaters of the Blackwater River catchment.
The model has a rectangular grid of 228 rows by 300 columns covering an area of approximately 20 km
by 35 km. The model was divided into 10 layers in the vertical dimension for a total of 684,000 cells, of
which approximately 572,000 are active. Cell size is 500 m by 500 m at the edges of the model and is
refined in the vicinity of the mine site to 25 m by 25 m. A maximum grid expansion factor of 1.5 was used
to increase dimensions of adjacent cells.
The numerical grid was rotated 35 degrees counterclockwise from true north in order to align the grid
axes with major hydrological features in the study area. This results in the grid being oriented such that
drainages generally run parallel with model rows and the northeast boundary of the model at Tatelkuz
Lake parallels model columns. The finite difference grid and layering is shown on Figure 3.2.
Elevation within the active model domain ranges from 930 masl at the outlet of Chedakuz Creek to
1,810 masl south of the proposed mine site at Mt. Davidson. The finite-difference grid was discretized
into ten layers to represent major hydrostratigraphic units present in the study area. Layers 1 and 2
represent the surficial overburden units and Layers 3 through 10 represent bedrock units. Layers
generally increase in thickness with depth:
 Layer 1 is an average of 30 m thick (top elevation defined by topography)
 Layer 2 is an average of 30 m thick (bottom elevation defined by bedrock surface)

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 Layer 3 is an average of 25 m thick

 Layer 4 is an average of 30 m thick
 Layers 5 through 9 are 100 m thick, and
 Layer 10 is of variable thickness, extending to a constant base elevation of to 0 masl.
The model surface in Layer 1 was defined as ground surface elevation using a combination of
two elevation datasets: LiDAR survey data (1 m resolution), which covers the proposed Project area and
was processed into a digital elevation model (DEM) with 20 m resolution, and 100 m resolution National
Topographic System (NTS) data. The two datasets were merged in Global Mapper (GM) and imported to
Groundwater Vistas (GWV) as a single DEM covering the entire study area. Ground surface elevation
contours for Layer 1 are provided on Figure 3.3.
Bedrock surface elevation contours determined as part of the Geotechnical Characterization for the
Project (KP 2013g) were used to define the top of Layer 3 as the top of bedrock. A uniform depth to
bedrock and the top of Layer 3 of 55 m was assigned to areas of the model where bedrock surface data
was unavailable. Additional processing of layer elevation was required to remove discontinuities in the
grid that resulted from layers that were thin relative to the change in elevation between adjacent cells.
For this reason, layer thickness in the upper four layers is variable rather than constant. Elevation
contours for the top of Layer 3 (top of bedrock) are provided on Figure B.3 in Appendix B.

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 360,000

370,000

380,000

390,000
5,910,000 5,910,000
1-TC

1-DC

BWL
4-DC

Ta
H6

te
lku
eek

z
Cr

La
rtle ek

ke
Tu re
C H4B

on
ds
H3

vi
a
D

e MW12-09S
ak 700
5,900,000 pL Creek 5,900,000
To
1-661
MW12-07D/S 661
MW12-08D/S Creek
H2 1-505659
MW12-05D/S MW12-12D/S H1
MW12-06S
k
ee

11-DC MW12-02D/S
Cr

4-705
BWH
nie
aw

705 PH13-1-3
ek MW12-13D/S
Cre
F

PH13-1-1 PH12-2-1
PH12-4-3
H7 PH12-3-2
1-705
MW12-04D
MW12-11D/S
MW12-10D
PH12-4-2
5,890,000 5,890,000
SAVED: M:\1\01\00457\06\A\GIS\Figs\Report13_NumericalGroundwaterModellingeport\Fig301_Modflow.mxd; Jan 17, 2014 9:18 AM; cczembor

5,880,000
360,000

370,000

380,000

390,000

2 1 0 2 4 6 8 km

SCALE

LEGEND: MODEL STUDY AREA NOTES:

CLIMATOLOGY STATION LAKE
NEW GOLD INC.
1. BASE MAP: CANADA DEM GEOBASE.
HYDROLOGY STATION/MODEL NODE WETLAND
WATERSHED MODEL NODE ELEVATION BAND (M) 2. COORDINATE GRID IS IN METRES. BLACKWATER GOLD PROJECT
COORDINATE SYSTEM:
MONITORING WELL < 915
NAD 1983 UTM ZONE 10N.
VIBRATING WIRE PIEZOMETER 915-1220
3. THIS FIGURE IS PRODUCED AT A NOMINAL
NUMERICAL GROUNDWATER MODEL
RIVER 1220-1525
SUB-CATCHMENT BOUNDARY
SCALE OF 1:175,000 FOR 8.5x11 (LETTER)
PAPER. ACTUAL SCALE MAY DIFFER
STUDY AREA BOUNDARY
1525-1830
ACCORDING TO CHANGES IN PRINTER
WATERSHED BOUNDARY > 1830 SETTINGS OR PRINTED PAPER SIZE. P/A NO. REF NO.
1 08JAN'14 ISSUED WITH REPORT DMW CC CAS KJB VA101-457/6 13
REV
0 20DEC'13 ISSUED WITH REPORT DMW AMD CAS KJB
REV DATE DESCRIPTION DESIGNED DRAWN CHK'D APP'D FIGURE 3.1 1
 2000

Elevation (masl)
Cross-Section Along Row 150
1800
1600
Cross-Section Along Row 150
1400
1200
1000
800
600
400
200
Elevation (masl) 0
0 5000 10000 15000 20000 25000 30000
2000
1800
1600
1400
1200
1000

Model X-Coordinate (m)

800
600
400
200

0 5000 10000 15000 20000 25000 30000

0

0 0

SECTION ALONG COL

125
Cross-Section Along Column 125

5000 5000
Model Y-Coordinate (m)

10000 10000

SECTION ALONG ROW

15000 15000 150

20000 20000
NOTES: NEW GOLD INC.
Boundary Conditions 1. AS INDICATED BY THE NORTH ARROW, THE MODEL GRID IS
ROTATED FROM TRUE NORTH SUCH THAT COLUMNS ALIGN WITH AN BLACKWATER GOLD PROJECT
AZIMUTH OF 325 DEGREES.
BASELINE MODEL
2. PROPOSED MINE FACILITY OUTLINES ARE SHOWN IN RED FOR NUMERICAL GRID, LAYERS AND BOUNDARY
SPATIAL REFERENCE ONLY AND ARE NOT SIMULATED IN THE CONDITIONS (LAYER 1)
BASELINE MODEL.
P/A NO. REF. NO.
VA101-457/6-13 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D FIGURE 3.2 0
NEW GOLD INC.
BLACKWATER GOLD PROJECT

3.3 HYDRAULIC CONDUCTIVITY

Hydraulic conductivity zones were assigned to the model to represent significant hydrostratigraphic units
present in the study area as described in Section 2.4.1. Initial values of hydraulic conductivity were
assigned to overburden and bedrock zones based on the results of in-situ hydraulic conductivity tests and
laboratory characterization. These initial values were varied within the range of observed and expected
values during calibration of the baseline model as discussed in Section 3.5. Calibrated hydraulic
conductivity values assigned to each model layer were assumed to be isotropic (K x = Ky = Kz), except for
the glaciolacustrine deposit and the kame/till deposit. The hydraulic conductivity values for
glaciolacustrine and kame/till deposits were assigned an anisotropy ratio (horizontal/vertical) of 5 and 45,
respectively. Calibrated hydraulic conductivity values assigned to the model are summarized in
Table 3.1.

Table 3.1 Baseline Model Hydraulic Conductivity Values

Hydraulic
Specific Specific Effective
Hydrostratigraphic Unit MODFLOW Conductivity
Layer Kx,y Kz Storage Yield Porosity
(m/s) (m/s) (1/m) (-) (-)
Glaciofluvial: Channel 1 1E-04 1E-04 1E-04 0.3 0.15
Glaciofluvial: Kame 1 1E-05 1E-05 1E-04 0.3 0.15
Glacial Till 1,2 2E-07 2E-07 1E-04 5E-02 0.15
Glaciolacustrine 1,2 1E-07 2E-08 1E-04 5E-02 0.15
Kame/Till Deposit 1 9E-06 2E-07 1E-04 5E-02 0.15
Completely Weathered Bedrock 3 1E-08 1E-08 1E-06 1E-03 0.001
Weathered Bedrock 3 or 4 1E-07 1E-07 1E-06 1E-03 0.001
Competent Bedrock 4, 5 2E-08 2E-08 1E-06 1E-04 0.0001
Competent Bedrock 6,7,8 1E-08 1E-08 1E-06 1E-04 0.0001
Competent Bedrock 9,10 1E-09 1E-09 1E-06 1E-04 0.0001
Higher Permeability Bedrock Zone in
Deposit 3 to 8 1E-06 1E-06 1E-05 5E-03 0.005
Bedrock Outcrops 1 1E-07 1E-07 1E-06 1E-03 0.001

Model Layer 1 was subdivided into six hydraulic conductivity zones based on the results of surficial
landform mapping conducted within the immediate project area (KP 2013a) and using surficial geology
maps by the Geologic Survey of Canada (Plouffe and Levson 2001, 2002) where the model extended
beyond that area. The majority of Layer 1 represented a glacial till with a hydraulic conductivity of
-7
2x10 m/s. Other units represented within Layer 1 include slightly weathered bedrock outcrops along
topographic highs and glaciofluvial kame and channel deposits within major surface drainages. The
glaciofluvial channel deposits were assumed to comprise approximately 30% of the width of permeable
sediments in major surface drainage channels in the model where detailed surficial mapping was
unavailable for the Project (KP 2013a). The kame/till deposit was specified in the model along the flanks
of Mt. Davidson in areas where a kame deposit is mapped as part of the surficial landform mapping
(KP 2013a) and where a thin kame unit (approximately 3 m thick) was encountered in test pits
(KP 2013b,e). The kame/till hydraulic conductivity zone was assigned to the model during calibration to
reduce flooding within grid cells at the base of Mt. Davidson, and to simulate a water table approximately
2 to 3 mbgs as observed during the field investigation.

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BLACKWATER GOLD PROJECT

Hydraulic conductivity zones for subsurface layers of the model (Layers 2 through 10) were assigned
based on available drill hole lithology and corresponding with the conceptual hydrogeological model
presented in Section 2.4. Layer 2 is predominantly glacial till everywhere except where a glaciolacustrine
deposit is present within upper Davidson Creek Valley and beneath lakes, and where bedrock is present
beneath outcrops. A plan view of hydraulic conductivity zones assigned to Layer 2 is presented on
Figure B.2 in Appendix B.
Layers 3 through 10 represent bedrock units and generally consist of weathered bedrock in Layer 3 and
competent bedrock in Layers 4 through 10. Exceptions to this include Davidson Creek valley where a
completely weathered bedrock unit was assigned in Layer 3 and weathered bedrock was subsequently
assigned in Layer 4. A higher permeability zone of bedrock is specified in the deposit area in
-6
Layers 3 through 8 with a hydraulic conductivity value of 1x10 m/s. Figures displaying the hydraulic
conductivity zones for Layers 3 through 10 are provided in Appendix B.

3.4 BOUNDARY CONDITIONS

Boundary conditions used to define the active model domain are shown on Figure 3.2 and include:
 No-flow boundaries
 Constant head boundaries
 General head boundary
 Drain cells to represent creeks
 Faults, and
 Meteoric recharge.

3.4.1 No-Flow Boundary

Most of the perimeter of the active model domain is defined by no-flow boundary conditions that
correspond to inferred groundwater divides along the model perimeter of the Turtle Creek, Creek 661,
Creek 705 and Blackwater River watershed. No-flow cells are specified as inactive and are excluded
from the groundwater flow calculations within the MODFLOW model. The locations of the no-flow cells
are shown on Figure 3.2 for Layer 1 and are the same in all layers of the model.

3.4.2 Constant Head Boundaries

Lakes within the model domain are represented by constant head boundaries. The stage assigned to the
constant head cells for a given water body was set equal to the approximate ground surface elevation at
the lake shore. Constant head boundaries are used to represent Snake Lake and three small lakes near
the divide between Davidson Creek and Creek 705 in model Layer 1.
Constant head boundaries were assigned at model perimeter locations where groundwater enters or exits
the model domain. Constant head cells were assigned to the outlet of Chedakuz Creek and Creek 705 in
Layer 1 to allow groundwater to discharge from the model coincident with surface water drainage.
Constant head cells were also assigned to the tributaries of Fawnie Creek defined as the southern
boundary of the model. The stage assigned to constant head cells was set at 2 m below the streambed
elevation. The constant head cells are shown on Figure 3.2.

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NEW GOLD INC.
BLACKWATER GOLD PROJECT

3.4.3 General Head Boundary

The general head boundary (GHB) is used to simulate head-dependant flow boundaries. Flow into or out
of a GHB cell is proportional to the difference between head assigned to the boundary and the simulated
head in the cell. General head boundary conditions were assigned to a segment of perimeter cells in
Layer 1 to simulate flow across the model boundary toward the Blackwater River watershed (Figure 3.2).
-7
A hydraulic conductivity value equivalent to the subsurface till material (2x10 m/s) was used to calculate
flow across the GHB. Hydraulic heads assigned to the boundary were set at 2 m below ground surface.

3.4.4 Drain Boundaries

Drain boundaries were used to simulate streams and rivers within the study area and to represent
Tatelkuz Lake. Drain cells act as a groundwater sink and allow groundwater to be removed from a model
cell where the simulated piezometric head is higher than a predefined drain stage. Water is unable to
discharge the drain cell if the simulated piezometric head is below the drain stage elevation. Drain stages
for modelled creeks were set at 2 m below the ground surface elevation within a given model cell.
The ability of groundwater to flow though a drain is a function of the drain conductance. Drain
conductances were estimated using the following formula:
C=l*w*K/t
Where:
C = conductance of streambed
l = length of stream in cell
w = width of streambed
K = hydraulic conductivity of streambed
t = thickness of streambed
Conductances were calculated using the calibrated hydraulic conductivity of the underlying materials and
the drain cell dimensions.

3.4.5 Faults
Faults acting as barriers to groundwater flow were represented in the model using the Wall boundary
condition (Horizontal Flow Barrier Package). The wall boundary condition allows thin, low permeability
vertical features to be represented in the model without refining the grid size. Faults were only specified
within the deposit area where the inclusion of a mapped fault helped to improve model calibration. The
best match to observed and simulated data was obtained using three faults located along the southern
and western edges of the deposit. Including faults in the model allowed simulated hydraulic gradients to
more closely represent the steep hydraulic gradients recorded at adjacent VWPs along the south edge of
the pit. Wall boundaries representing faults were specified in model Layers 3 through 10 and were
-9
assigned a horizontal hydraulic conductivity of 1x10 m/s.

3.4.6 Meteoric Recharge

Seven recharge zones were assigned to Layer 1 based on the spatial distribution of surficial material
types as shown on Figure 3.4. Recharge to glacial till materials was differentiated into three zones based
on elevation (lower, middle and higher elevation) in order to represent the estimated influence of
orographic effects on precipitation and recharge (KP 2013f). Recharge values within the till zone of the
model were initially assigned proportional to the increase in net precipitation available for recharge and

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NEW GOLD INC.
BLACKWATER GOLD PROJECT

run off estimated by the results of watershed modelling (KP 2013f). Recharge to the lower till zone was
subsequently assigned a lower value to reduce flooding within lower elevations of the model.
Initial groundwater recharge values were assigned based on surficial material type and watershed
modelling (KP 2013f) which suggested that approximately 10% of annual precipitation (an areal weighted
average of 70 mm) provides recharge to groundwater. These initial values were varied within an
expected range during calibration of the baseline model. The calibrated groundwater recharge values
assigned to each zone of the model are summarized in Table 3.2.

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 1.2 Model X-Coordinate (m)
0 5000 10000 15000
#REF! 20000 25000 30000
0

5000
0.8
(m)
Elevation(m)
Model Y-Coordinate

0.6

10000

0.4

#REF!

0.2
15000

0
0 0.2 0.4 0.6 0.8 1 1.2
Area (ha)
20000
Horizontal Hydraulic Vertical Hydraulic
Zone Color Material Type
Conductivity Kh (m /sec) Conductivity Kv (m /sec)
Zone 6 Glaciofluvial: Channel 1.E-04 1.E-04
Zone 2 Glaciofluvial: Kame 1.E-05 1.E-05 NEW GOLD INC.
Zone 1 Glacial Till 2.E-07 2.E-07
Zone 4 Glaciolacustrine 1.E-07 2.E-08 BLACKWATER GOLD PROJECT
Zone 12 Kame/Till Deposit 9.E-06 2.E-07
Zone 11 Bedrock Outcrops 1.E-07 1.E-07 BASELINE MODEL
NOTES: HYDRAULIC CONDUCTIVITY ZONES (LAYER 1)
1. THE CONTOUR LINES SHOWN ABOVE ILLUSTRATE GROUND SURFACE ELEVATION (masl) AS DEFINED IN MODEL
LAYER 1.
2. THE GLACIOLACUSTRINE AND GLACIOFLUVIAL KAME/TILL DEPOSITS HAVE ANISOTROPY RATIOS (Kh/Kv) OF 5 AND
P/A NO. REF. NO.
VA101-457/6-13 13
45, RESPECTIVELY.
0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV
REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE 3.3 0
 0 5000 10000
Model15000
X-Coordinate (m) 20000 25000 30000
0

5000
Model Y-Coordinate (m)

10000

15000

20000
Groundwater Recharge
Zone Color Material Type
(mm/year)
Zone 1 Till - Lower 22
Zone 2 Till - Mid 40 NEW GOLD INC.
Zone 3 Till -Upper 80
Zone 4 Lacustrine 22 BLACKWATER GOLD PROJECT
Zone 5 Bedrock Outcrop 80
Zone 6 Glaciofluvial - Channel 190 BASELINE MODEL
Zone 7 Glaciofluvial - Kame 190 GROUNDWATER RECHARGE ZONES (LAYER 1)
NOTES:
1. THE CONTOUR LINES SHOWN ABOVE ARE OF GROUND SURFACE P/A NO. REF. NO.
VA101-457/6-13 13
ELEVATION (masl) AS DEFINED IN MODEL LAYER 1.
0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV
REV DATE DESCRIPTION PREP'D CHK'D APP'D FIGURE 3.4 0
NEW GOLD INC.
BLACKWATER GOLD PROJECT

Table 3.2 Calibrated Recharge Values by Zone

Recharge Unit Area Recharge

2
Zone (km ) (mm/yr)
1 Till - Lower 117.2 22
2 Till - Mid 127.1 40
3 Till - Upper 21.4 80
4 Lacustrine 20.4 22
5 Bedrock Outcrop 12.9 80
6 Glaciofluvial - Channel 3.5 190
7 Glaciofluvial - Kame 44.1 190

3.5 BASELINE MODEL CALIBRATION

The baseline model was calibrated using an iterative trial-and-error method in order to refine the match
between modelled and observed pre-development conditions at the site. Hydraulic conductivity and
groundwater recharge rates were varied during the calibration process to achieve the best match to
hydraulic head measurements in monitoring wells and vibrating wire piezometers as well as to estimates
of average annual baseflows within the study area. Locations of the groundwater elevation and baseflow
calibration targets are shown on Figure 3.1.
The PCG-5 solver was used to solve the groundwater flow equations in MODFLOW-SURFACT, with the
following criteria:
 Number of outer iterations: 300
 Number of inner iterations: 600
 Maximum orthogonalizations: 10, and
 Head change criterion: 0.001 meters.

3.5.1 Hydraulic Head Targets

The baseline model was calibrated to hydraulic heads recorded by manual measurement or vibrating wire
piezometers (VWPs) at 40 monitoring locations across the project area. Measured hydraulic heads at
18 monitoring wells were based on the average of three available manual groundwater level
measurements (September 2012; April and July 2013). These measurements are considered to be
generally representative of average annual conditions. The measured hydraulic heads at 22 VWPs
represent recorded piezometric elevations in March 2013. Since these measurements represent
baseflow conditions, measured hydraulic heads at VWPs may be slightly lower than the annual average.
A summary of the measured and simulated hydraulic heads at the model calibration targets is provided in
Table 3.3 and on Figure 3.5.
Simulated hydraulic heads differ from observed by less than 10 m at all locations within the model except
within the deposit area. The greatest discrepancies in the deposit area are at observation well PH12-4-3.
An inclined fault is mapped passing through observation well PH12-4-3. The fault was specified within
the model to be vertical and not dipping. Simulated hydraulic heads within the lower portion of the
observation well, at VWP1, VWP2 and VWP3, are within 5 m from the observed value. Monitoring well
MW12-11D and observation well PH12-3-2 are located south of the deposit and report differences in

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NEW GOLD INC.
BLACKWATER GOLD PROJECT

hydraulic head of 12 to 15 m from recorded. The goal of model calibration was not to reproduce the
hydraulic head variation at all observation points within the deposit area, but to obtain a general
representation of hydrogeologic conditions. The match to hydraulic heads within the deposit area is
considered suitable for the purpose of the model.

3.5.2 Baseflow Targets

The numerical model was calibrated to baseflow targets at 14 locations along Turtle Creek, Davidson
Creek, Creek 661 and Creek 705 as shown on Figure 3.1. The baseflow values were derived from
watershed modelling conducted for the Project (KP 2013f) and represent estimates of average annual
baseflows.
Estimated baseflows at the outlets of Davidson Creek and Turtle Creek differ by less than 5 percent from
baseflows estimated using the watershed model. Baseflows within Creek 705 vary by over
40 percent from the watershed model estimates. Limited data was available to calibrate Creek 705
streamflows in the watershed model and Creek 705 baseflows estimates are considered to be less
certain.

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NEW GOLD INC.
BLACKWATER GOLD PROJECT

Table 3.3 Observed and Simulated Hydraulic Heads

Measured Simulated
Groundwater Groundwater Residual Head
Well I.D.
Elevation Elevation (m)
(masl) (masl)
MW12-02D 1,401 1,405 -4.1
MW12-02S 1,406 1,405 0.8
MW12-04D 1,556 1,565 -8.9
MW12-05D 1,374 1,378 -4.1
MW12-05S 1,373 1,377 -4.4
MW12-06S 1,258 1,261 -2.9
MW12-07D 1,203 1,208 -4.7
MW12-07S 1,204 1,208 -4.3
MW12-08D 1,160 1,156 4.3
MW12-08S 1,158 1,156 1.8
MW12-09S 1,144 1,142 1.8
MW12-10D 1,657 1,663 -5.6
MW12-11D 1,668 1,656 11.9
MW12-11S 1,668 1,659 9.3
MW12-12D 1,243 1,237 6.3
MW12-12S 1,243 1,237 6.4
MW12-13D 1,368 1,365 3.3
MW12-13S 1,359 1,365 -5.5
PH13-1-1_VWP1 1,524 1,514 9.8
PH13-1-1_VWP2 1,525 1,514 10.5
PH13-1-3_VWP1 1,517 1,513 3.6
PH13-1-3_VWP2 1,517 1,513 4.2
PH13-1-3_VWP3 1,518 1,513 4.7
PH12-2-1_VWP2 1,514 1,514 -0.3
PH12-2-1_VWP3 1,518 1,514 3.5
PH12-3-2_VWP1 1,624 1,622 1.8
PH12-3-2_VWP2 1,629 1,622 7.7
PH12-3-2_VWP3 1,633 1,621 12.3
PH12-3-2_VWP4 1,633 1,621 12.0
PH12-3-2_VWP5 1,634 1,619 15.4
PH12-4-2_VWP1 1,611 1,616 -5.4
PH12-4-2_VWP2 1,612 1,616 -4.1
PH12-4-2_VWP3 1,616 1,619 -2.5
PH12-4-2_VWP4 1,617 1,620 -2.7
PH12-4-2_VWP5 1,619 1,620 -1.4
PH12-4-3_VWP1 1,525 1,520 4.6
PH12-4-3_VWP2 1,524 1,520 3.8
PH12-4-3_VWP3 1,535 1,532 2.5
PH12-4-3_VWP4 1,597 1,559 38.4
PH12-4-3_VWP5 1,610 1,559 51.2
RMSE (m) 11.9
NRMSE 2%

NOTES:
1. THE VALUES LISTED AS MEASURED GROUNDWATER ELEVATIONS AT MONITORING WELLS (MW) ARE AVERAGE
ELEVATIONS OVER THE PERIOD OF AVAILABLE MEASURED DATA AND ARE MEASUREMENTS FROM MARCH 2013 AT
VWPS INSTALLED IN OBSERVATION WELLS (‘PH’ SERIES).
2. RMSE = ROOT MEAN SQUARE ERROR; NRMSE = NORMALIZED ROOT MEAN SQUARE ERROR.

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NEW GOLD INC.
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Table 3.4 Baseflow Calibration Results

MODFLOW Model Watershed Model

Hydrology RPD
Drainage (Simulated) (Target)
Station
3 3
(m /d) (m /d) (%)
11-DC 978 0 -
H2 8,967 9,325 -4
Davidson Creek H4B 14,193 12,569 12
4-DC 15,425 12,657 20
1-DC 15,611 15,008 4
1-505659 3,134 1082 97
Creek 661 H1 2,194 405 138
1-661 6,268 7,692 -20
H3 796 593 29
Turtle Creek H6 7,204 8,940 -22
1-TC 10,929 11,386 -4
4-705 939 428 75
Creek 705 H7 5,279 2,603 68
1-705 6,356 3,969 46

NOTES:
1. WATERSHED MODEL VALUES OBTAINED FROM WATERSHED MODELLING REPORT (KP 2013f).
2. BOLD INDICATES THE DOWNSTREAM MOST STATION ON EACH DRAINAGE COURSE.
3. RPD = RELATIVE PERCENT DIFFERENCE.

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 1,700 MW12-02D
MW12-02S
MW12-04D
MW12-05D
MW12-05S
MW12-06S
1,600 MW12-07D
MW12-07S
MW12-08D
Model Overprediction MW12-08S
MW12-09S
MW12-10D
MW12-11D
Simulated Hydraulic Head (masl)

1,500
MW12-11S
MW12-12D
MW12-12S
MW12-13D
MW12-13S
1,400 PH13-1-1_VWP1
PH13-1-1_VWP2
PH13-1-3_VWP1
Model Underprediction PH13-1-3_VWP2
PH13-1-3_VWP3
PH12-2-1_VWP2
1,300 PH12-2-1_VWP3
PH12-3-2_VWP1
PH12-3-2_VWP2
PH12-3-2_VWP3
PH12-3-2_VWP4
PH12-3-2_VWP5
1,200 PH12-4-2_VWP1
PH12-4-2_VWP2
PH12-4-2_VWP3
PH12-4-2_VWP4
PH12-4-2_VWP5
PH12-4-3_VWP1
1,100 PH12-4-3_VWP2
PH12-4-3_VWP3
1,100 1,200 1,300 1,400 1,500 1,600 1,700 PH12-4-3_VWP4
Measured Hydraulic Head (masl)
NEW GOLD INC.
BLACKWATER GOLD PROJECT

BASELINE MODEL
OBSERVED VS. SIMULATED HYDRAULIC HEAD

P/A NO. REF. NO.

VA101-457/6-13 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D FIGURE 3.5 0
NEW GOLD INC.
BLACKWATER GOLD PROJECT

3.6 BASELINE MODEL RESULTS

A simulated water table contour map for the calibrated baseline model is presented in Figure 3.6. The
simulated water table generally mimics the surface topography with groundwater elevations ranging from
1,760 masl at Mt. Davidson to approximately 920 masl near the outlet of Chedakuz Creek. Cross-
sections through the deposit area along model row 150 and column 125 are presented on Figure 3.7.
The cross sections illustrate that groundwater recharge occurs within topographic highs and groundwater
flows downslope to discharge areas located in creek valleys.
From the steady-state model, average annual groundwater discharge to tributaries of Blackwater River
3 3
included in the model domain was 5,585 m /d (65 L/s). An additional 225 m /d (3 L/s) of groundwater
was predicted to flow in the subsurface across the model boundary to the Blackwater River catchment.
Streams were simulated in the model using drain boundary conditions. Drains allow water to discharge
from the model domain but do not allow surface water to infiltrate into the model domain. The potential
for losing stream conditions exists within the headwaters of streams, along isolated stream segments
where the width of glaciofluvial channel sediments increases, and at the downslope extent of the bench
west of Tatelkuz Lake based on the results of the simulated vertical direction of flux in modelled stream
cells. Where the potential for surface water infiltration exists due to an increase in the width of
glaciofluvial channel sediments, the infiltrated water is expected to discharge back into the stream at a
location downstream where the width channel deposit narrows. Representing streams with drains in this
model is considered suitable for the scale of the regional study.

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 Model X-Coordinate (m)
0 5000 10000 15000 20000 25000 30000
0

125
SECTION ALONG COL
5000
Model Y-Coordinate (m)

10000

SECTION ALONG ROW

150
15000

20000
Water Table Elevation (masl)
Boundary Conditions
NEW GOLD INC.
NOTES:
BLACKWATER GOLD PROJECT
1. THE CONTOUR LINES SHOWN ABOVE ARE OF MODEL
SIMULATED WATER TABLE ELEVATION (masl).
BASELINE MODEL
2. PROPOSED MINE FACILITY OUTLINES ARE SHOWN FOR SPATIAL SIMULATED WATER TABLE CONTOUR MAP
REFERENCE ONLY AND ARE NOT SIMULATED IN THE BASELINE
MODEL. P/A NO. REF. NO.
VA101-457/6-13 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D FIGURE 3.6 0
 2000 Cross-Section Along Col 125
1800
Elevation (masl)

1600
1400
1200
1000
800
600
400
200
0
0 5000 10000 15000 20000

Model X-Coordinate (m)

Cross-Section Along Row 150

2000
1800
1600
Elevation (masl)

1400
1200
1000 SECTION ALONG ROW
800 150
600
400
200
0
0 5000 10000 15000 20000 25000 30000
Model X-Coordinate (m)
NOTES: NEW GOLD INC.
1. CONTOURS REPRESENT HYDRAULIC HEAD EQUIPOTENTIALS. BLACKWATER GOLD PROJECT
2. ARROWS INDICATE GROUNDWATER FLOW DIRECTION BASED
BASELINE MODEL
ON THE SLOPE OF THE EQUPOTENTIAL LINES.
SIMULATED HYDRAULIC HEAD DISTRIBUTION
(CROSS-SECTION)
P/A NO. REF. NO.
VA101-457/6-13 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D FIGURE 3.7 0
NEW GOLD INC.
BLACKWATER GOLD PROJECT

4 – MINE OPERATIONS SIMULATION

4.1 OVERVIEW
A transient Operations Model was developed to assess potential effects of the Blackwater Project on pre-
development hydrogeological conditions. The Operations Model was developed from the calibrated
baseline groundwater model using MODFLOW-SURFACT and Groundwater Vistas.
The objectives of the operations groundwater modelling were to:
 Characterize potential effects of mine facilities on baseline hydrogeology during the operational
period
 Estimate groundwater inflow rates to the open pit on a yearly basis, and
 Delineate the groundwater capture zone surrounding the open pit at its maximum extent.
The results of the transient operations modelling along with the methodology and assumptions used to
develop the models are presented in the sections that follow.

4.2 PROJECT DESCRIPTION

The Project timeline includes two years of pre-production (Year -2) and 16.2 years of operations
(Year 1 to 17.2) at a nominal milling rate of 60,000 dry metric tonnes per day. Closure is predicted to take
an additional 18 years after milling is complete, defined as the time until the TSF discharges to Davidson
Creek. The Pit Lake is estimated to fill to the spillway elevation 20 year after the end of operational
dewatering. Key mine infrastructure considered during numerical model development includes the
following components:
 Open Pit
 Tailings Storage Facility (TSF), which consists of the TSF Site C and TSF Site D facilities
 Non-Acid Generating (NAG) waste rock/overburden dumps
 Low Grade Ore (LGO) stockpile
 Environmental Control Dam (ECD) and groundwater interception trenches
 Seepage collection ditches
 Freshwater Reservoir and supply system, and
 Plant site.
Drawings showing the mine General Arrangement at the end of operations (Year 17), closure (Year 20),
and post-closure are provided in Appendix C.
The TSF has been designed to permanently store tailings, potentially acid generating (PAG) waste rock,
and non-acid generating waste rock (NAG) generated during the operation of the mine. TSF Site C will
be constructed first to provide storage capacity for start-up of the process plant. The Site C facility has
been designed to contain the first two years of tailings and PAG waste rock. TSF Site D will be
constructed to manage tailings and mine waste for the remainder of the operational life of the project
(Years 3 to 17). The TSF facility consists of three zoned water-retaining earth-rockfill dams referred to as
the Site C Main Dam, Site C West Dam, and Site D Main Dam. Design of each TSF includes a tailings
beach and supernatant water pond. A low-permeability core zone within each embankment will extend to
low-permeability subgrade (LPS) materials at depth.
NAG waste rock and overburden will be combined and placed in two permanent engineered dumps
adjacent to the east and west sides of the open pit (east dump and west dump). The LGO stockpile will

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be placed adjacent to the open pit during operations and will be reclaimed by the end of mine operations
(Year 17).
An Environmental Control Dam (ECD) and groundwater interception trenches are planned approximately
1 km downstream of the Site D Main Dam to recover potential seepage from the TSF. One seepage
interception trench will be constructed on each side of Davidson Creek, which will be excavated through
the surficial sand and gravel terraces to LPS downstream of the Site D Main Dam. Seepage to the
collection trenches will report to the ECD pond. Recovered water will be pumped to TSF Site D and the
collection pond will be maintained in a dewatered condition to the maximum extent practical.
Engineered drainage ditches will be constructed downslope of the east and west waste rock dumps and
LGO stockpile to collect surface runoff and shallow groundwater seepage from facilities. Drainage
ditches will direct water to the TSF.
Fresh water for the project will be sourced from Tatelkuz Lake, which is located approximately 20 km
northeast of the mine site. Freshwater for streamflow mitigation in Davidson Creek will be stored in a
Freshwater Reservoir located approximately 800 m downstream of the ECD.

4.3 MODEL DISCRETIZATION

4.3.1 Model Grid, Initial Heads and Stress Periods

The model geometry, layering and numerical grid remained unchanged from the Baseline Model. The
model grid and model layers for the Operations Model are shown on Figure 4.1. Hydraulic heads from
the calibrated Baseline Model were set as the initial heads for the Operations Model.
The Operations Model was run for 15 years, corresponding to the period of time that the open pit will be
actively de-watered (Year -2 to Year 13). The open pit will reach its maximum depth in Year 13. The
model duration was subdivided into 15 stress periods, each of one year length. The open pit excavation
was advanced and average annual groundwater inflows to the pit were estimated at the end of each
(annual) stress period.

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 2000

Elevation (masl)
Cross-Section Along Row 150
1800
1600
Cross-Section Along Row 150
1400
1200
1000
800
600
400
200
Elevation (masl) 0
0 5000 10000 15000 20000 25000 30000
2000
1800
1600
1400
1200
1000

Model X-Coordinate (m)

800
600
400
200

0 5000 10000 15000 20000 25000 30000

0

0 0

SECTION ALONG COL

125
Cross-Section Along Column 125

5000 5000
Model Y-Coordinate (m)

10000 10000

SECTION ALONG ROW

15000 15000 150

20000 20000
Boundary Conditions NOTES: NEW GOLD INC.
1. AS INDICATED BY THE NORTH ARROW, THE MODEL GRID IS BLACKWATER GOLD PROJECT
ROTATED FROM TRUE NORTH SUCH THAT COLUMNS ALIGN WITH AN
AZIMUTH OF 325 DEGREES. OPERATIONS MODEL
NUMERICAL GRID, LAYERS AND BOUNDARY
2. THE ECD SYSTEM IS REPRESENTED WITH DRAIN BOUNDARY
CONDITIONS (LAYER 1)
CONDITIONS AND IS HIGHLIGHTED IN LIGHT BLUE DOWNSTREAM FROM
THE TSF MAIN EMBANKMENT. P/A NO. REF. NO.
VA101-457/6-13 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D FIGURE 4.1 0
NEW GOLD INC.
BLACKWATER GOLD PROJECT

4.3.2 Hydraulic Conductivity

Additional hydraulic conductivity zones were assigned to the Operations Model to define mine facilities in
-7
model Layer 1. A hydraulic conductivity value of 1x10 m/s was assigned to cells representing the
seepage cut-off for the TSF embankments. Cells representing embankments of the Environmental
-7
Control Dam and the Freshwater Reservoir dam were assigned a hydraulic conductivity of 1x10 m/s.
The seepage interception trenches of the ECD were represented by assigning a hydraulic conductivity of
-5
1x10 m/s to grid cells in model Layer 1 within the planned footprint of the trenches.
Hydraulic conductivity values assigned to model Layers 2 through 10 remained unchanged from the
Baseline Model.

4.3.3 Storage and Specific Yield

Specific storage values were assigned to the transient model based on the range of accepted values
(Freeze and Cherry, 1979; Heath 1983) and the results of two pumping tests (KP 2013h). Storage
parameters assigned to all units are provided in Table 3.1.

4.3.4 Boundary Conditions

Boundary conditions assigned to the Operations Model remained unchanged from the Baseline Model
except where mine facilities are proposed. Details on the boundary conditions assigned to each
proposed facility are provided below. Boundary conditions assigned to Layer 1 of the Operations Model
are shown on Figure 4.1.

4.3.4.1 Tailings Storage Facility (TSF)

TSF Ponds C and D were represented using river boundary (RIV) cells defined in model Layer 1 within
each pond footprint. River boundaries allow inflow to or outflow from the model domain based on the
difference between simulated hydraulic head and a user defined stage elevation. Stage elevations of
1,343 masl and 1,334 masl were assigned to the RIV cells of TSF Ponds C and D, respectively, as
defined by supernatant pond elevation. TSF Pond C RIV cells are activated at the start of stress period 2
(Year -1) and Pond D RIV cells become active at the start of stress period 3 (Year 1). Both ponds remain
active through the end of stress period 15 (Year 13).

4.3.4.2 Open Pit

Drain cells were specified in the open pit area of the model to simulate operational dewatering during
active mining. Operational pit shells for Years -2 through 13 were used to assign drain cells within model
Layers 1 through 8 in each stress period. For each stress period, drain stage elevations were set equal
to the elevation of the pit shell at a given cell location. Drain conductance was assigned a value high
enough to allow water to drain freely into the open pit while still minimizing mass balance error and
2
preventing convergence issues (5 m /day).

4.3.4.3 Environmental Control Dam and Seepage Interception Trenches

The ECD was specified within the model using a constant head boundary condition equivalent to the
planned water elevation. The seepage interception trenches were represented using drain cells specified
within model Layer 1. Drain cells were assigned a drain elevation equivalent to the bottom of the grid cell

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NEW GOLD INC.
BLACKWATER GOLD PROJECT

elevation. Conductance of the drain cells was calculated using the hydraulic conductivity value assigned
-5
to the interception trenches (1x10 m/s).

4.3.4.4 Camp Groundwater Wells

Groundwater extraction wells that will supply potable water to the mine construction and operations camp
were represented in the Operations Model using the analytical Fracture Wells (FWL4) Package. Two
extraction wells were included in the model. The well locations and screened intervals were obtained
from well drillers’ reports (Western Water Associates Ltd 2013). Pumping rates were assigned to the
3
wells to meet the estimated 382 m /d (70 gpm) water requirement to supply the camp during the
construction phase of the project. The water demand during construction exceeds the estimated
3
requirements during operations (127 m /d). Well data and the pumping rates used in the model are
summarized in Table 4.1.

Table 4.1 Groundwater Extraction Well Details

Pumping Screen Bottom Layers

Elevation
Well Rate Depth of Well Screened
3
(gpm) (m /d) (masl) (m) (masl) (-)
TW13-01 40 218 1,402 27 1,375 1
TW13-02 30 164 1,333 58 1,275 1

4.3.4.5 Groundwater Recharge

The spatial distribution and rate of groundwater recharge for areas undisturbed by proposed mine
facilities remained unchanged from the baseline model. Changes to the specified groundwater recharge
boundary condition in the model were made for the following mine components:
 East and west dumps
 Low-Grade Ore Stockpile
 Tailings beach and embankments, and
 Tailings Ponds C and D.
A recharge rate of 130 mm/year was applied to the tailings beach and embankment in the Mine
Operations model. A recharge rate of 60 mm/yr was assigned to the Low-Grade Ore Stockpile and the
east and west dumps. No recharge was assigned to the TSF pond footprints as recharge to the pond
area is controlled by the RIV cells of the supernatant ponds.

4.4 SIMULATION RESULTS

The Operations Model simulated water table contours are provided on Figure 4.2, which represents the
predicted water table corresponding to the end of active mine dewatering (end of Year 13). Groundwater
contours are depressed around the open pit. The predicted groundwater zone of influence defining the
water table drawdown around the open pit is shown on Figure 4.3. Water table elevations within the open
pit footprint are expected to be drawn down during Year 13 by a maximum of 350 m from pre-
development conditions. The 1 m drawdown contour extends towards the Blackwater River a distance of
about 600 m from the southeast edge of the pit rim. The drawdown zone of influence is irregularly
shaped and is elongated toward the topographic highs of Mt. Davidson.

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Groundwater drawdown was predicted around the camp water supply wells associated with groundwater
extraction through the operational period. A maximum drawdown of approximately 5 m was expected
immediately adjacent to the TW13-01 and TW13-02 well locations, as shown on Figure 4.2. Groundwater
drawdown associated with the camp wells was predicted to intersect with the 1 m drawdown zone of
influence of the open pit.
From model results, reductions in groundwater flow contributing to the Blackwater River catchment were
predicted to be negligible at the end of active dewatering. Groundwater contribution (baseflow) to
3
tributaries of Blackwater River included in the model were 5,585 m /d in baseline conditions. Reductions
in average annual baseflow contribution to these Blackwater River tributary streams were estimated to be
3
20 m /d (0.25 L/s), which is equivalent to a 0.2% decrease in average annual baseflows to Blackwater
River tributaries in the model. Groundwater flows leaving the model domain toward Blackwater River via
the General Head Boundary remained unchanged from baseline conditions.
Simulated groundwater inflows to the open pit during each year of operations are provided on Figure 4.4.
Groundwater inflow rates are plotted for the results of the Operations Model along with estimates based
on an analytical calculation presented in the Pit Water Management Report (KP 2013h). The maximum
groundwater inflow rate is almost 60 L/s with an average inflow for Year 3 through Year 13 of
approximately 50 L/s. The analytical calculation was used to design the dewatering system and includes
groundwater pumping rates required to achieve slope depressurization during the first few years of pit
dewatering. Predicted groundwater inflows to the open pit using the numerical groundwater model do not
consider requirements for slope depressurization.

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 1.2 Model X-Coordinate (m)
0 5000 10000
#REF!
15000 20000 25000 30000
0

5000
0.8
Elevation
Model Y-Coordinate (m)
(m)

0.6

10000

0.4

#REF!

0.2
15000

0
0 0.2 0.4 0.6 0.8 1 1.2
Area (ha)
20000

NOTES:
Boundary Conditions 1. CONTOUR INDICATE MODEL SIMULATED WATER TABLE NEW GOLD INC.
ELEVATION (masl).
BLACKWATER GOLD PROJECT
2.THE ECD SYSTEM (DRAIN BOUNDARY CONDITIONS)
ARE HIGHLIGHTED IN LIGHT BLUE DOWNSTREAM FROM OPERATIONS MODEL
THE MAIN TSF EMBANKMENT. GROUNDWATER ELEVATION MAP
3. EMBANKMENT DRAINS ARE NOT ASSIGNED WITHIN
(YEAR 13)
THE FOOTPRINTS OF THE TSF EMBANKMENTS. P/A NO. REF. NO.
VA101-457/6-13 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D FIGURE 4.2 0
 TW13-02

TW13-01

Boundary Conditions
Groundwater Extraction Well NEW GOLD INC.
NOTES: BLACKWATER GOLD PROJECT
1. CONTOURS INDICATE PREDICTED WATER TABLE DRAWDOWN (meters) OPERATIONS MODEL
FROM PRE-DEVELOPMENT CONDITIONS. PREDICTED OPEN PIT DRAWDOWN
(YEAR 13)
P/A NO. REF. NO.
VA101-457/6-13 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D FIGURE 4.3 0
 70

60

50
Groundwater Inflow Rate (L/S)

40

30

20

10

0
‐2 ‐1 1 2 3 4 5 6 7 8 9 10 11 12 13
Analytical Pit Inflow Predictions (L/S) Year of Operations

MODFLOW Simulated Pit Inflows (L/S)
NEW GOLD INC.
NOTES: BLACKWATER GOLD PROJECT
1. PIT INFLOW RATES PREDICTED FOR YEARS ‐2 THROUGH 2 USING THE ANALYTICAL METHOD OPERATIONS MODEL
ARE HIGHER THAN THOSE PREDICTED USING THE NUMERICAL MODEL. THE ANALYTICAL PREDICTED PIT INFLOW RATES: NUMERICAL MODEL
METHOD CONSIDERS THE GROUNDWATER PUMPING REQUIREMENTS FOR PIT DEWATERING AND AND ANALYTICAL CALCULATION
PIT WALL DEPRESSURIZATION. THE NUMERICAL MODEL SIMULATIONS DO NOT INCLUDE PUMPING
REQUIREMENTS TO ACHIEVE DEPRESSURIZATION. P/A NO. REF. NO.
VA101-457/6-13 13
0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB
REV
REV DATE DESCRIPTION PREP'D CHK'D APP'D FIGURE 4.4 0
NEW GOLD INC.
BLACKWATER GOLD PROJECT

5 – CLOSURE/POST-CLOSURE SIMULATION

5.1 OVERVIEW
A transient Closure/Post-Closure Model was developed for the Project in order to simulate filling of the
open pit during the closure phase of mining. The pit void will fill with water contributed by groundwater
inflows and water pumped from the TSF D Pond.
The Closure/Post-Closure Model was developed using MODFLOW-SURFACT and Groundwater Vistas.
The model was created by modifying the transient Operations Model to represent the pit as a void
capable of filling with water. The results of the transient closure/post-closure modelling along with the
methodology and assumptions used to develop the models are presented in the sections that follow.

5.2 MODEL DEFINITION

5.2.1 Model Geometry and Grid

The numerical model geometry, layering and grid remained unchanged from the Operations Model.

5.2.2 Stress Periods

The Closure/Post-Closure Model was run for a 40 year duration. The simulation period starts at the end
of active mine dewatering (Year 13). The model duration was subdivided into eight stress periods of
variable length as summarized in Table 5.1.

Table 5.1 Closure/Post-Closure Model Stress Periods

Stress Stress Period Length Cumulative

Period
Period (days) (years) Time (days)
1 1 0 1
CLOSURE / POST-CLOSURE

2 1455 4.0 1,456

3 2372 6.5 3,828
4 2372 6.5 6,200
5 2555 7.0 8,755
6 2200 6.0 10,955
7 2200 6.0 13,155
8 2250 6.2 15,405
Total Simulation Time (Years): 42

5.2.3 Initial Head Distribution

The final head distribution from the end of the Operations Model (Year 13) was assigned as the initial
head distribution in the Closure/Post-Closure Model. Using these heads to define the initial condition
allows the transient model to begin its simulation period with hydrogeologic conditions representing the
end of active dewatering.

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5.2.4 Hydraulic Conductivity and Storage

The hydraulic conductivity values assigned to the Closure/Post-Closure Model remained unchanged from
the Operations Model except within the open pit. The open pit was represented as a void within the
-4
model using a hydraulic conductivity zone assigned a value of 2x10 m/s. This value was high enough to
allow water to drain freely into the pit excavation from the surrounding surficial and bedrock material. The
void zone was assigned to Layers 1 through 7 in the footprint of the open pit. The hydraulic conductivity
value was varied during model construction to minimize convergence and mass balance issues. Storage
and specific yield were set to 1.0 within the void area to represent the Pit Lake as open water.

5.2.5 Boundary Conditions

Additional boundary conditions were incorporated into the model to represent proposed mine facilities to
simulate potential effects on hydrogeological conditions. A discussion detailing how each proposed
facility is represented in the model is provided in the following subsections.

5.2.5.1 Tailings Storage Facility (TSF)

As in the Operations Model, TSF Ponds C and D were simulated using the river cells defined in model
Layer 1 within the footprint area of both TSF ponds. The river cells in TSF Pond C and D were active
during all stress periods of the Closure/Post-Closure Model. The stage elevations and conductances
assigned to the RIV cells in Pond C and D remained unchanged from the Operations Model. A tailings
beach was modelled along the TSF Embankment using a recharge boundary condition. A recharge rate
of 100 mm/yr was assigned to the tailings beach.

5.2.5.2 Pit Lake

Water will be pumped from TSF Pond D to the open pit to assist in rapid pit filling of the Pit Lake. Total
water contributing to the pit void in the model was specified as a combination of groundwater inflows and
water pumped from TSF Pond D. Well boundary cells were specified within the void zone in
Layers 6, 7 and 8 to simulate pumping from TSF Pond D to the pit void. The well boundaries were active
during stress periods 3 through 5 (a pumping duration of 20 years) and supplied water to the open pit at a
constant rate of 362 L/s to fill the pit void.
The Pit Lake Spillway was represented in the model using drain cells assigned to Layer 1 at the outlet of
the Pit Lake. The drain stage elevation was set at 1,475 masl in order to control the Pit Lake elevation
(corresponding to a Pit Lake volume of 236.2 million cubic meters). Water discharges freely from the pit
to the spillway drain when hydraulic heads within the Pit Lake exceed the drain elevation.

5.3 SIMULATION RESULTS

The Closure/Post-Closure Model simulated water table contours are provided on Figure 5.1. The
simulated water table contours represent the predicted water table corresponding to Post-Closure (end of
Year 40) once the pit lake has reached its maximum spillway controlled volume.
Model results indicate the open pit is predicted to reach its maximum storage volume of 236.2 million
cubic meters 21 years after the end of operational dewatering (in Year 33). This corresponds with a
spillway controlled water surface elevation of 1,475 masl. During this period, the pit lake is allowed to fill
naturally with groundwater for four years after the end of operational dewatering at which point pumping
from TSF Pond D at a rate of 362 L/s commences. Water in excess of the Pit Lake volume is discharged

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from the simulated pit via spillway drains. The estimated duration of pit filling corresponds well with an
estimate of 20 years previously completed using GoldSim (KP 2013i).

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0.000008 Model X-Coordinate (m)
0 5000 10000
Hydraulic Conductivity
15000
Kh (m/sec)
20000 25000 30000
0

0.000007

0.000006

5000

0.000005
Elevation
Model Y-Coordinate (m)
(m)

0.000004

10000
0.000003

0.000002 Hydraulic Conductivity Kh…

15000
0.000001

0
0 0.5 1 1.5 2 2.5 3 3.5
Area (ha)
20000
NOTES:
Boundary Conditions 1. THE CONTOUR LINES SHOWN ABOVE ARE OF MODEL
SIMULATED WATER TABLE ELEVATION (masl). NEW GOLD INC.
2.THE ECD SYSTEM (DRAIN BOUNDARY CONDITIONS) BLACKWATER GOLD PROJECT
ARE HIGHLIGHTED IN LIGHT BLUE DOWNSTREAM FROM
THE MAIN TSF EMBANKMENT. CLOSURE/POST-CLOSURE MODEL
3. THE ULTIMATE PIT LAKE ELEVATION ASSIGNED TO THE GROUNDWATER ELEVATION MAP
MODEL WAS 1475 masl. (YEAR 55)
3. EMBANKMENT DRAINS ARE NOT ASSIGNED WITHIN P/A NO. REF. NO.
VA101-457/6-13 13
THE FOOTPRINTS OF THE TSF EMBANKMENTS.
0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV
REV DATE DESCRIPTION PREP'D CHK'D APP'D FIGURE 5.1 0
 250,000,000

200,000,000
Pit Lake Water Storage Volume (m3)

150,000,000

100,000,000

50,000,000

0
0 5 10 15 20 25 30 35 40
Time (Years After End of Operational Dewatering)

GoldSim Simulated Storage Volume NEW GOLD INC.

BLACKWATER GOLD PROJECT
Maximum Available Storage Volume CLOSURE/POST-CLOSURE MODEL
SIMULATED PIT LAKE STORAGE VOLUME
MODFLOW Simulated Pit Storage Volume
P/A NO. REF. NO.
VA101-457/6-13 13
0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB
REV
REV DATE DESCRIPTION PREP'D CHK'D APP'D FIGURE 5.2 0
NEW GOLD INC.
BLACKWATER GOLD PROJECT

6 – POST-CLOSURE SIMULATION

6.1 OVERVIEW
A steady-state Post-Closure Model was developed to characterize potential seepage pathways from key
mine infrastructure during the post-closure period. The Post-Closure Model was developed by modifying
the Closure/Post-Closure Model to represent the elevation of the Pit Lake using a constant head
boundary condition.
The main objectives of the steady-state post-closure modelling were to:
 Estimate total seepage rates from the Pit Lake during post-closure
 Delineate potential seepage pathways from key mine facilities, including the Pit Lake, TSF, east and
west waste rock dumps, and the plant site using MODPATH, and
 Estimate seepage travel times to downstream discharge locations using MODPATH and Endpoint
analysis.
The results of the steady-state post-closure modelling along with the methodology and assumptions used
to develop the model are presented in the sections that follow.

6.2 MODEL DEFINITION

6.2.1 Model Geometry and Grid

The numerical model geometry, layering and grid remained unchanged from previous models.

6.2.2 Boundary Conditions and Hydraulic Conductivity

Boundary conditions and hydraulic conductivity values assigned to the steady-state Post-Closure model
were changed from previous model versions within the TSF and Pit Lake. A hydraulic conductivity value
-7
of 1x10 m/s was assigned to cells representing the seepage cut-off for the TSF embankments. Similar
to previous simulations, the rockfilled core of the embankment was assigned a hydraulic conductivity of
-5
1x10 m/s. Drain cells were assigned to Layer 1 within the footprint areas of the TSF embankments and
the south abutment. Drain stage was set to the elevation of the top of Layer 1. Constant head cells were
used to represent the Pit Lake and were assigned in Layers 1 through 8 of the pit void. A constant head
of 1,475 masl was assigned to the Pit Lake cells.

6.3 SIMULATION RESULTS

The steady-state Post-Closure Model simulated water table contours are provided on Figure 6.1.
Hydraulic head contours indicate that groundwater flow from the Pit Lake is expected to be towards the
Davidson Creek and Creek 661 catchments. Based on a water balance assessment of the Pit Lake using
the Post-Closure model, groundwater inflows to the Pit Lake are estimated to be 4.5 L/s and seepage
from the Pit Lake is expected to be approximately 1.3 L/s. The difference in flow into and out of the Pit
Lake leaves the Pit Lake via the pit spillway together with net precipitation reporting to the Pit Lake.
Additional details on seepage pathways from the Pit Lake are discussed below in the Seepage Pathway
Analysis.
No change to average annual baseflows or groundwater flows to Blackwater River catchment was
predicted above the limits of modelling error using the steady-state Post-Closure model.

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MODELLING REPORT January 16, 2014
 1.2 Model X-Coordinate (m)
0 5000 10000
#REF!
15000 20000 25000 30000
0

5000
0.8
(m)
Elevation(m)
Model Y-Coordinate

0.6

10000

0.4

#REF!

0.2
15000

0
0 0.2 0.4 0.6 0.8 1 1.2
Area (ha)
20000

Boundary
Conditions NOTES: NEW GOLD INC.
1. THE CONTOUR LINES SHOWN ABOVE ARE OF MODEL BLACKWATER GOLD PROJECT
SIMULATED WATER TABLE ELEVATION (masl).
2.THE ECD SYSTEM (DRAIN BOUNDARY CONDITIONS) STEADY-STATE POST-CLOSURE
ARE HIGHLIGHTED IN LIGHT BLUE DOWNSTREAM FROM GROUNDWATER ELEVATION MAP
THE MAIN TSF EMBANKMENT.
P/A NO. REF. NO.
VA101-457/6-13 13
0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV
REV DATE DESCRIPTION PREP'D CHK'D APP'D FIGURE 6.1 0
NEW GOLD INC.
BLACKWATER GOLD PROJECT

6.4 SEEPAGE PATHWAY ANALYSIS

6.4.1 Seepage Flow Directions and Travel Times (MODPATH Particle Tracking)
MODPATH particle tracking was implemented to delineate flow directions and estimate seepage travel
times to discharge locations from key mine infrastructure. The following facilities were included in the
MODPATH analysis:
 TSF facility, including Site C and Site D
 Pit Lake
 East and west dumps, and
 Plant site.
For the Pit Lake MODPATH analysis, particles were inserted along the downstream rim of the pit shell in
Layers 1 through 8 and within the footprint of the Pit Lake constant head cells in Layer 8. For MODPATH
analyses at all other facilities, particles were inserted at the top of Layer 1 within the facility footprint.
Particles were forward tracked through the groundwater flow system to downstream discharge locations.
Downstream discharge locations are shown on Figure 6.2.
MODPATH combined with Endpoint Analysis was used to determine the discharge location of potential
seepage from each facility. Endpoint analysis allows the user to identify steady-state flow lines that
terminate (discharge) at a cell along the model boundary. The MODPATH simulation can be used to
calculate approximate groundwater travel times along the seepage pathways by taking into consideration
an assumed effective porosity. Effective porosities assigned to the model for the MODPATH velocity
calculations are shown on Table 3.1 and include 0.1% (0.001) for weathered bedrock, 0.01% (0.0001) for
competent bedrock and 15% (0.15) for overburden material. Travel times are representative of advective
transport and do not include effects from dispersion or diffusion.
MODPATH results are sensitive to specification of the “sink strength” input parameter, which defines the
termination criterion for particle traces flowing through boundary cells. All MODPATH scenarios
presented herein adopt a “stop at 50 percent strength” weak sink option to discontinue particle traces in
boundary cells. Conceptually this means that the model terminates a particle trace in a cell if more than
50% of the water in the cell is removed.

6.4.2 Seepage Flux Rates (HSU Mass Balance)

Seepage Flux Rates for the mine facilities were estimated using the Hydrostratigraphic Unit (HSU)
package in Groundwater Vistas to generate a water budget for each facility. The HSU package allows
the user to group model cells into “hydrostratigraphic units,” or zones, in order to track inflow and outflow
from these defined regions of the model. The footprint area under each facility contributing seepage to
each discharge location was delineated and assigned to a distinct HSU zone using the MODPATH
particle tracking results. The plant site footprint for example, was divided into two HSUs corresponding to
areas contributing seepage to its two downstream discharge locations: the lower east dump drainage
ditch and the natural channel reporting to the TSF. Seepage fluxes to each discharge location
downstream of a facility were quantified following this methodology.

6.4.3 Seepage Analysis Results

The results of the MODPATH and seepage flux rate simulations are summarized in Table 6.1 and include
seepage discharge locations, approximate advective groundwater travel times and seepage flux rates.

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NEW GOLD INC.
BLACKWATER GOLD PROJECT

The simulated MODPATH particle traces resulting from each simulation are provided in Appendix D along
with figures showing the HSU zones defining the simulated discharge zone used to assess the seepage
rates for each mine facility. Histograms showing the distribution of particle travel times from each facility
to downstream locations are provided in Appendix E.
Results of the seepage analysis for each facility are described in the sections that follow.

6.4.3.1 TSF Site D

Seepage from TSF Site D is predicted to be captured primarily by the TSF main embankment drains
(15 L/s) and the ECD collection system (5 L/s). Travel time for seepage to arrive at TSF embankment
drains is fast, and the minimum travel time estimated within the seepage analysis (0.3 years in Table 6.1)
likely an over-prediction of travel time limited by the resolution of the model. Lesser amounts of seepage
are predicted to reach Creek 661 (0.2 L/s), Davidson Creek (0.4 L/s), the south abutment drains (0.4 L/s)
and the TSF spillway (0.1 L/s). The model estimates that several particles discharge to Davidson Creek,
the ECD system and the TSF main embankment with very long travel times in excess of 1,500 years.
These particles originate within the TSF near the boundary of the TSF Site D Pond discharge zone
(shown in purple on Appendix Figure D.3). The low hydraulic gradient near this flow boundary results in
very long travel times for particles to move forward from the originating grid cell (Appendix Figure E.1).
The total foundation seepage rate leaving TSF Site D is estimated to be approximately 21 L/s based on
the results of the HSU zone mass balance. This seepage estimate only includes seepage through the
foundation and does not include seepage through the TSF embankment. Embankment seepage cannot
be simulated using the current model construction due to the representation of the TSF using river
boundaries and modified recharge rates to represent the pond and beach, respectively.

6.4.3.2 TSF Site C

Particle traces indicate that all seepage from TSF Site C is predicted to discharge to the Site D facility.
Seepage travel times were not assessed for these seepage paths.

6.4.3.3 Pit Lake

The total seepage from the Pit Lake is estimated to be 1.3 L/s based on the HSU zone mass balance. A
large portion of the seepage originating from the Pit Lake is predicted to discharge to drainages that
ultimately report to the TSF, including natural channels upstream of the east dump drainage ditches
(0.4 L/s) and drainages reporting to the TSF Site D (0.3 L/s). Model results indicate seepage to the east
dump drainage ditches is expected to follow shallow flow paths primarily through the overburden in model
Layers 1 and 2 (Appendix Figure D.6). Seepage to Creek 661 (0.5 L/s) is expected to travel though the
upper layers of bedrock. A lesser amount of seepage (0.01 L/s) is predicted to discharge to Davidson
Creek.
Results of the seepage analysis indicate that seepage flow paths originating from TSF Site D and the Pit
Lake converge toward the TSF spillway and Creek 661 via local groundwater flow paths. Seepage flow
paths originating from the Pit Lake travel to Davidson Creek via deeper (regional) groundwater flow paths
within the competent bedrock.

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NEW GOLD INC.
BLACKWATER GOLD PROJECT

6.4.3.4 East Waste Rock Dump

Seepage originating from the east dump is predicted to be approximately 3 L/s based on the HSU zone
mass balance. Seepage from the east dump is predicted to discharge primarily to Creek 661 at a rate of
approximately 1.7 L/s. MODPATH particle traces indicate that seepage is predicted to travel to
Creek 661 along local groundwater flow paths in the overburden and shallow bedrock. Approximately
1.3 L/s of the seepage is predicted to discharge to springs within the east dump footprint, engineered
drainage ditches and natural channels that will be routed to TSF Site D. A trace proportion of seepage
(<1%) is predicted to discharge to the TSF spillway.

6.4.3.5 West Waste Rock Dump

All seepage originating from the west dump is predicted to discharge to downstream mine facilities or
drainages leading to mine facilities. The total seepage rate of 3.3 L/s is predicted to discharge primarily
to springs within the footprint of the waste rock dump and to the drainage ditch north of the west dump.
This seepage will be collected in drainages that flow TSF Site D. A small portion of seepage is predicted
to be captured by the Pit Lake (0.1 L/s) and a trace amount of seepage is predicted to discharge to TSF
Site C.

6.4.3.6 Plant Site

All seepage from the footprint of the plant site is predicted to discharge to engineered drainage ditches
and natural channels that flow to TSF Site D. Seepage originating from the footprint of the plant site is
predicted to be approximately 2.4 L/s based on the HSU zone mass balance.

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 3

4
12
10
11

6 Number Discharge Locations

13 1 Channel to East Dump Drainage Ditches
9 2 Creek 661
3 Davidson Creek
2 4 ECD System

5 14
5 Lower East Dump Drainage Ditch
6 Natural Channel Reporting to TSF
7 Pit Lake
8 Springs within East Dump Footprint
7 9 Springs within West Dump Footprint
8 10 TSF Main Embankment Drains
11 TSF Site C Pond

1 12 TSF Site D Pond

13 TSF South Abutment Drains
14 TSF Spillway

NOTES: NEW GOLD INC.

1. THE CONTOUR LINES SHOWN ABOVE ARE OF MODEL SIMULATED WATER TABLE BLACKWATER GOLD PROJECT
ELEVATION (masl).
STEADY-STATE POST-CLOSURE
PARTICLE DISCHARGE LOCATIONS

P/A NO. REF. NO.

VA101-457/6-13 13
0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB
REV
REV DATE DESCRIPTION PREP'D CHK'D APP'D FIGURE 6.2 0
NEW GOLD INC.
BLACKWATER GOLD PROJECT

Table 6.1 Results of MODPATH Particle Tracking and Advective Travel Times

Simulated Seepage Flux Travel Time to Discharge Location

MODPATH/Seepage Discharge Rates (Years)1
Facility
Location Discharge Discharge
Average Median Minimum Maximum
(L/Sec) (% of Total)
Pit Lake
Davidson Creek 0.01 1% 809 781 424 1,334
Creek 661 0.5 42% 290 218 28 1,037
TSF Main Embankment Drains 0.01 1% 226 120 78 711
TSF Spillway 0.01 1% 24 25 21 26
ECD System 0.03 2% 364 279 122 1,313
Natural Channel Reporting to TSF 0.3 22% 202 150 51 2,113
Channel to East Dump Drainage Ditches 0.4 31% 103 102 12 227
Total Seepage From Pit Lake 1.3 100% - - - -
TSF C
- 100% - - - -
TSF Site D Pond
TSF D
Davidson Creek 0.4 2% 1,807 585 127 6,979 4
Creek 661 0.2 1% 365 254 97 1,037
TSF Main Embankment Drains 15 72% 90 40 0.3 2,824 4
TSF South Abutment Drains 0.4 2% 21 15 1 84
TSF Spillway 0.1 <1% 82 70 22 217
ECD System 5.0 24% 224 129 13 2,492 4
Natural Channel Reporting to TSF 0.1 <1% 15 10 0.5 93
Total Seepage From TSF D 21.3 100% - - - -
East Waste Rock Dump

Creek 661 1.7 56% 424 405 47 1,288

Springs within East Dump Footprint 0.4 13% 32 23 0.5 123
Channel to East Dump Drainage Ditches 0.7 22% 109 88 2 297
Natural Channel Reporting to TSF 0.05 2% 27 27 21 33
Lower East Dump Drainage Ditch 0.2 6% 448 482 328 544
TSF Spillway 0.04 1% 38 36 23 63
Total Seepage From East Waste Rock Dump 3.0 100% - - - -
West Waste Rock Dump
Springs within West Dump Footprint 0.7 22% 55 17 0.1 336
Natural Channel Reporting to TSF 2.4 74% 198 160 0.5 558
TSF Site C Pond <0.1 <1% - - 159 -
Pit Lake 0.1 4% 18 13 0.2 59
Total Seepage From West Waste Rock Dump 3.3 100% - - - -
Plant Site
Natural Channel Reporting to TSF 0.5 22% 72 77 26 102
Lower East Dump Drainage Ditch 1.9 78% 38 36 11 92
Total Seepage From Plant Site 2.4 100% - - - -

NOTES:
1. APPROXIMATE SEEPAGE TRAVEL TIMES FROM THE STOCKPILES TO THE DISCHARGE LOCATIONS WERE CALCULATED USING AN
ASSUMED EFFECTIVE POROSITY OF 0.1% (0.001) FOR WEATHERED BEDROCK, 0.01% (0.0001) FOR UNWEATHERED BEDROCK AND
15% (0.15) FOR ALLUVIAL MATERIALS.
2. TRAVEL TIMES ARE PROVIDED FOR THE STEADY-STATE POST-CLOSURE MODEL
3. RAVEL TIMES ARE BASED ON ADVECTIVE TRAVEL ONLY AND DISREGARD THE EFFECTS OF DISPERSION AND DIFFUSION.
4. PARTICLES WITH LONG TRAVEL TIMES ORIGINATE NEAR THE BOUNDARY OF THE TSF SITE D POND DISCHARGE ZONE (SHOWN ON
FIGURE 3). THE PROXIMITY TO THIS BOUNDARY MAY INFLUENCE THE MODELLED TRAVEL TIMES.

NUMERICAL GROUNDWATER 56 of 61 VA101-457/6-13 Rev 0

MODELLING REPORT January 16, 2014
NEW GOLD INC.
BLACKWATER GOLD PROJECT

7 – CONCLUSIONS AND RECOMMENDATIONS

7.1 CONCLUSIONS
Based on the data analysis, model calibration and model simulations, the following conclusions can be
drawn from the results of the numerical groundwater flow models:
 Groundwater in the southwestern portion of the deposit area behaves in a compartmentalized
manner. The best fit to modelled data was achieved by specifying barriers to groundwater flow
(faults) along the edges of the deposit and a higher permeability bedrock zone in the central portion of
the deposit. Identification of this compartmentalization was the result of and supported by increased
data density in this area. Groundwater compartmentalization is likely present at most locations on the
site and was included in the model calibration process.
 Mine dewatering was simulated using a transient Operations Model simulating 15 years of mine
operations (Year -2 through Year 13). Drain cells were specified within the pit shell. The maximum
groundwater inflow rates predicted using the numerical groundwater model were approximately
60 L/s with an average inflow rate of 50 L/s. Numerical model results compare well with estimates
using an analytical calculation.
 At the end of active dewatering (Year 13), water table drawdown of 1 m was predicted to extend an
average distance of approximately 1,200 m from the pit edge. The predicted drawdown zone of
influence is irregularly shaped and is elongated beneath the topographic high at Mt. Davidson. The
1 m drawdown contour extends approximately 600 m from the pit edge in a southeast direction
toward Blackwater River.
 The groundwater drawdown zone of influence for the open pit at the end of active dewatering as
defined by 1 m drawdown contours was predicted to merge with the drawdown zone of influence from
the camp wells. The assessment was conducted using a camp water demand predicted for the
construction phase which is approximately three times greater than the predicted water demand
during operations and is therefore considered conservative.
 From model results, reductions in groundwater flow contributing to the Blackwater River catchment
were predicted to be negligible at the end of active dewatering. Average annual baseflow contribution
3
to these Blackwater River tributary streams was estimated to be 20 m /d (0.4%) lower than baseline
conditions at the end of active dewatering (Year 13) and to be the same as baseline conditions in
Post-Closure.
 The Pit Lake was estimated to take 21 years to fill to its maximum volume at the spillway elevation
following the cessation of dewatering. This analysis assumed that water is pumped to the Pit Lake
from TSF Site D at a rate of 362 L/s to assist in rapid pit filling.
 Results of the steady-state Post-Closure seepage assessment using MODPATH particle tracking and
a mass balance analysis of facility footprint area contributing seepage to downstream discharge
locations indicated that:
o Total seepage into the foundation materials below TSF Site D was predicted to be 21 L/s. The
majority of seepage originating from TSF Site D was predicted to discharge to the TSF
embankment drains (15 L/s) and to the seepage collection system at the Environmental Control
Dam (5 L/s). Approximately 0.4 L/s of seepage originating from TSF Site D was predicted to
bypass seepage collection measures and discharge to Davidson Creek. Approximately 0.2 L/s
seepage was predicted to discharge to Creek 661 and 0.1 L/s was predicted to discharge to the
TSF spillway.

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NEW GOLD INC.
BLACKWATER GOLD PROJECT

o Total seepage from the Pit Lake was estimated to be approximately 1.3 L/s and was predicted to
flow in the directions of the Davidson Creek and Creek 661 catchments. Seepage from the Pit
Lake was not predicted to flow toward the Blackwater River catchment. A large portion of the Pit
Lake seepage was predicted to discharge to drainages that flow to TSF Site D (0.7/s). Seepage
of approximately 0.5 L/s was estimated to travel along local groundwater flow paths through the
upper bedrock and discharge to Creek 661. A trace amount of seepage (0.01 L/s) was predicted
to discharge to Davidson Creek following travel paths though deep bedrock.
o Approximately 1.3 L/s of seepage from the east dump was predicted to discharge to springs and
natural channels directed to engineered drainage ditches that convey runoff and toe discharge to
the TSF. A seepage amount of 1.7 L/s from the east waste rock dump was predicted to flow
within the overburden and shallow bedrock under the engineered drainage ditches and discharge
to Creek 661.
o Seepage originating from the west waste rock dump was predicted to discharge primarily to
drainage channels routed to the TSF. Seepage from this facility was not predicted to reach the
downstream environment.
o Seepage originating from the plant site was predicted to flow to natural and engineered drainages
that are routed to the TSF. Seepage from this facility was not predicted to reach the downstream
environment.
 Results of the seepage analysis indicated that seepage flow paths originating from TSF Site D, the Pit
Lake and the east waste rock dump converge beneath the TSF spillway and Creek 661. These local
groundwater flow paths would discharge to the overlying drainages. Seepage flow paths originating
from the Pit Lake were modelled to travel via deeper (regional) groundwater flow paths within the
competent bedrock to Davidson Creek.

7.2 RECOMMENDATIONS
The following monitoring is recommended to be collected to verify model results provided in this report,
address uncertainty in predicted effects based on these results and provide guidance for monitoring and
contingency planning:
 Monitoring of groundwater levels in the deposit area to evaluate the effects of pit dewatering.
 Monitoring of groundwater levels and collection of groundwater quality samples at locations
downgradient of facilities to assess potential seepage and flow reductions. Model results indicate that
shallow seepage pathways within the overburden and shallow bedrock are topographically controlled.
The monitoring network should be designed so groundwater monitoring locations are installed along
these pathways, particularly downgradient of the proposed location of the TSF south abutment. The
monitoring network should also be designed to assess the efficiency of the seepage interception
works.
 Streamflow measurements and water quality sampling downgradient of the facilities at Creek 661 and
Davidson Creek.

NUMERICAL GROUNDWATER 58 of 61 VA101-457/6-13 Rev 0

MODELLING REPORT January 16, 2014
NEW GOLD INC.
BLACKWATER GOLD PROJECT

7.0 REFERENCES
Harbaugh, A.W., Banta, E.R., Hill, M.C., and McDonald, M.G., 2000. MODFLOW-2000, the U.S.
Geological Survey modular ground-water model -- User guide to modularization concepts and the
Ground-Water Flow Process: U.S. Geological Survey Open-File Report 00-92, 121 pp.
Deere, D. U. and Patton, F. D., 1971: Slope stability in residual soils, Fourth Panam. Conf. SMFE, San
Juan, Puerto Rico, 1, pages 87–170.
Freeze, R.A. and Cherry, J.A., 1979. Groundwater, Prentice-Hall.
Heath, R.C., 1989. Basic Ground-Water Hydrology, U.S. Geological Survey Water-Supply Paper 2220.
Hydrogeologic Inc. (HGL), 1996. MODHMS/MODFLOW-SURFACT: A Comprehensive MODFLOW-
Based Hydrologic Modeling System. Reston, VA.
Knight Piésold Ltd. 2013a., Reconnaissance Terrain and Terrain Stability Mapping.
KP Ref No. VA101-457/4-4, Rev 0. February 2012. .
Knight Piésold Ltd., 2013b. 2012 Site Investigation Report. KP Ref No. VA101-457/6-1, Rev 0.
September 2013.
Knight Piésold Ltd., 2013c. Feasibility Open Pit Slope Design. KP Ref No. VA101-457/6-2, Rev 0,
November 2013.
Knight Piésold Ltd., 2013d. 2013 Hydrometerology Report. KP Ref No. VA101-457/6-12, Rev 0,
November 2013.
Knight Piésold Ltd., 2013e. 2013 Site Investigation Report. KP Ref No. VA101-457/6-4, Rev 0,
November 2013.
Knight Piésold Ltd., 2013f. Watershed Modelling Report. KP Ref No. VA101-457/6-6, Rev 0,
November 2013.
Knight Piésold Ltd., 2013g. Geotechnical Characterization Report. KP Ref No. VA101-457/6-8, Rev 0,
November 2013.
Knight Piésold Ltd., 2013h. Open Pit Water Management Plan. KP Ref No. VA101-457/6-8, Rev 0,
November 2013.
Knight Piésold Ltd., 2013i. Updated FS Water Balance Model Memo. KP Ref No. VA13-02400, Rev 0,
December 2013.
Plouffe, A. and Levson V.M., 2001. Surficial geology, Tatelkuz Lake, British Columbia; Geological Survey
of Canada, Open File 4001, scale 1:100,000.
Plouffe, A. and Levson V.M., 2002. Surficial geology, Entiako Lake, British Columbia; Geological Survey
of Canada, Open File 4157, scale 1:100,000.
Plouffe, A., Levson, V.M., and Mate, D.J., 2004. Surficial Geology, Nechako River, British Columbia.
Geological Survey of Canada, Map 2067A, scale 1:250,000.
Pollock, D.W., 1994. User's Guide for MODPATH/MODPATH-PLOT, Version 3: A particle tracking post-
processing package for MODFLOW, the U.S. Geological Survey finite-difference ground-water
flow model: U.S. Geological Survey Open-File Report 94-464, 6 ch.

NUMERICAL GROUNDWATER 59 of 61 VA101-457/6-13 Rev 0

MODELLING REPORT January 16, 2014
NEW GOLD INC.
BLACKWATER GOLD PROJECT

Western Water Associates, Ltd., 2013. Memorandum regarding New Gold, Blackwater Construction
Camp, Water Supply Feasibility. August 2013.

NUMERICAL GROUNDWATER 60 of 61 VA101-457/6-13 Rev 0

MODELLING REPORT January 16, 2014
NEW GOLD INC.
BLACKWATER GOLD PROJECT

APPENDIX A

APPENDIX FIGURES

(Pages A-1 to A-3)

NUMERICAL GROUNDWATER VA101-457/6-13 Rev 0

MODELLING REPORT January 16, 2014
 340,000

350,000

360,000

370,000

380,000

390,000

400,000
C
he
da
ku
zC
r

ee
k
1-TC
5,910,000 5,910,000

1-DC

BWL

H6 4-DC

Ta
te
eek
H4B

lku
Cr

z
ek

La
rtle H3 re
Tu

ke
C

on
ds
a

vi
D

e
ak 700
pL Creek 1-661
5,900,000
To 5,900,000

H2
k 661
H1 Cree
1-505659

k
11-DC

ee
4-705

Cr
BWH

nie
6-705
705

aw
ek
1-705 Cre

F
H7
SAVED: M:\1\01\00457\06\A\GIS\Figs\Report13_NumericalGroundwaterModellingeport\StreamCoursesProjectHydrologyStns.mxd; Jan 17, 2014 9:14 AM; cczembor

MOUNT
DAVIDSON

5,890,000 5,890,000

a ter Riv er
kw
B la c

5,880,000 5,880,000
340,000

350,000

360,000

370,000

380,000

390,000

400,000
1.75 0.875 0 1.75 3.5 5.25 7 km
SCALE

LEGEND: ELEVATION BAND (M)

NEW GOLD INC.
NOTES:
CLIMATOLOGY STATION SUB-CATCHMENT BOUNDARY < 915
BLACKWATER GOLD PROJECT
HYDROLOGY STATION/WATERSHED MODEL NODE 915-1220 1. BASE MAP: CANADA DEM GEOBASE.
WATERSHED BOUNDARY
WATERSHED MODEL NODE LAKE 1220-1525
2. COORDINATE GRID IS IN METRES. STREAM COURSES AND PROJECT
RIVER
WETLAND 1525-1830 COORDINATE SYSTEM: NAD 1983 UTM ZONE 10N.
HYDROLOGY STATIONS
> 1830 3. THIS FIGURE IS PRODUCED AT A NOMINAL SCALE OF 1:175,000
FOR 11x17 (TABLOID) PAPER. ACTUAL SCALE MAY DIFFER P/A NO. REF NO.
ACCORDING TO CHANGES IN PRINTER SETTINGS OR
PRINTED PAPER SIZE.
VA101-457/6 13
FIGURE A.1
0 20DEC'13 ISSUED WITH REPORT DMW AMD CAS KJB REV
REV DATE DESCRIPTION DESIGNED DRAWN CHK'D APP'D 0
 370,000

372,000

374,000

376,000

378,000

380,000
LEGEND:

òN
>
!
KAME

E
" RIVER/CREEK
CONTOUR (5m)
FLUTING

INCISED MELTWATER CHANNEL

MAJOR MELTWATER CHANNEL
MELTWATER CHANNEL
PRO-GLACIAL MELTWATER CORRIDOR

SUB-GLACIAL MELTWATER CORRIDOR

5,898,000 5,898,000 GLACIOFLUVIAL DEPOSITS (CHANNELIZED)
1500 GLACIOFLUVIAL DEPOSITS (NON-CHANNELIZED)

LODGEMENT TILL

ABLATION TILL

GLACIOLACUSTRINE

COLLUVIUM DEPOSITS

BEDROCK

LAKE

PROPOSED MINE FACILITY

5,896,000 5,896,000

1300
SAVED: M:\1\01\00457\06\A\GIS\Figs\Report13_NumericalGroundwaterModellingeport\SurficialGeologyAndLandformsMap.mxd; Dec 20, 2013 11:15 AM; adinca

5,894,000 5,894,000

NOTES:
1. COORDINATE GRID IS IN METRES.
COORDINATE SYSTEM: NAD 1983 UTM ZONE 10N.
1400
2. THIS FIGURE IS PRODUCED AT A NOMINAL SCALE OF 1:35,000
FOR 11x17 (TABLOID) PAPER. ACTUAL SCALE MAY DIFFER
ACCORDING TO CHANGES IN PRINTER SETTINGS OR
PRINTED PAPER SIZE.

3. THE CONTOUR INTERVAL IS 5 METRES; SOURCE: EAGLE MAPPING.

4. FACILITIES BASED ON 24MAY'13 VERSION OF THE GENERAL ARRANGEMENT.

5. CROSSMARKS POINT TOWARDS CENTRE LINE.

5,892,000 5,892,000
00
17 350 175 0 350 700 1,050 1,400 1,750 m
SCALE

NEW GOLD INC.

BLACKWATER GOLD PROJECT
16
00

SURFICIAL GEOLOGY AND LANDFORMS MAP

370,000

372,000

374,000

376,000

378,000

380,000
1800

P/A NO. REF NO.

VA101-457/6 13
FIGURE A.2
0 20NOV'13 ISSUED WITH REPORT JEH AMD JAS KJB REV
REV DATE DESCRIPTION DESIGNED DRAWN CHK'D APP'D 0
NEW GOLD INC.
BLACKWATER GOLD PROJECT

APPENDIX B

NUMERICAL MODEL HYDRAULIC CONDUCTIVITY ZONES

(Pages B-1 to B-7)

NUMERICAL GROUNDWATER VA101-457/6-13 Rev 0

MODELLING REPORT January 16, 2014
 Model X-Coordinate (m)
0.000008
Hydraulic Conductivity Kh (m/sec)
0 5000 10000 15000 20000 25000 30000
0

0.000007

0.000006

5000

0.000005
Elevation (m)
Model Y-Coordinate (m)

0.000004

10000

0.000003

0.000002 Hydraulic Conductivity Kh…

15000
0.000001

0
0 0.5 1 1.5 2 2.5 3 3.5
Area (ha)
20000
Horizontal Hydraulic Vertical Hydraulic
Zone Color Material Type
Conductivity Kh (m/sec) Conductivity Kv (m/sec)
Zone 6 Glaciof luvial: Channel 1.E-04 1.E-04
Zone 2 Glaciof luvial: Kame 1.E-05 1.E-05 NEW GOLD INC.
Zone 1 Glacial Till 2.E-07 2.E-07
BLACKWATER GOLD PROJECT
Zone 4 Glaciolacustrine 1.E-07 2.E-08
Zone 12 Kame/Till Deposit 9.E-06 2.E-07
BASELINE MODEL
Zone 11 Bedrock Outcrops 1.E-07 1.E-07
HYDRAULIC CONDUCTIVITY ZONES (LAYER 1)
NOTES:
1. THE CONTOUR LINES SHOWN ABOVE ILLUSTRATE GROUND SURFACE ELEVATION (masl) . P/A NO. REF. NO.
VA101-457/6-13 13

REV
0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB FIGURE B.1 0
REV DATE DESCRIPTION PREP'D CHK'D APP'D
 Model X-Coordinate (m)
0 5000 10000 15000 20000 25000 30000
0

5000
Model Y-Coordinate (m)

10000

15000

20000
Horizontal Hydraulic Vertical Hydraulic
Zone Color Material Type
Conductivity Kh (m/sec) Conductivity Kv (m /sec)
NEW GOLD INC.
Zone 1 Glacial Till 2.E-07 2.E-07
Zone 4 Glaciolacustrine 1.E-07 2.E-08 BLACKWATER GOLD PROJECT
Zone 5 Competent Bedrock 1.E-08 1.E-08
BASELINE MODEL
HYDRAULIC CONDUCTIVITY ZONES (LAYER 2)
NOTES:
1. THE CONTOUR LINES SHOWN ABOVE ILLUSTRATE THE TOP ELEVATION P/A NO. REF. NO.
OF LAYER 2 (masl). VA101-457/6-13 13

REV
0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB FIGURE B.2 0
REV DATE DESCRIPTION PREP'D CHK'D APP'D
 Model X-Coordinate (m)
0 5000 10000 15000 20000 25000 30000
0

5000
Model Y-Coordinate (m)

10000

15000

20000

Horizontal Hydraulic Vertical Hydraulic

Zone Color Mate rial Type
Conductivity Kh (m/sec) Conductivity Kv (m /s ec)
NEW GOLD INC.
Zone 3 Completely Weathered Bedrock 1.E-08 1.E-08
Zone 9 Weathered Bedrock 1.E-07 1.E-07 BLACKWATER GOLD PROJECT
Zone 5 Competent Bedrock 1.E-08 1.E-08
Zone 7 Higher Permeability Bedrock Zone in Deposit 1.E-06 1.E-06 BASELINE MODEL
HYDRAULIC CONDUCTIVITY ZONES (LAYER 3)
NOTES:
1. THE CONTOUR LINES SHOWN ABOVE ILLUSTRATE THE TOP OF P/A NO. REF. NO.
BEDROCK AS DEFINED IN MODEL LAYER 3. VA101-457/6-13 13

REV
0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB FIGURE B.3 0
REV DATE DESCRIPTION PREP'D CHK'D APP'D
 Model X-Coordinate (m)
0 5000 10000 15000 20000 25000 30000
0

5000
Model Y-Coordinate (m)

10000

15000

20000

Horizontal Hydraulic Ve rtical Hydraulic

Zone Color Mate rial Type
Conductivity Kh (m/se c) Conductivity Kv (m/se c)
NEW GOLD INC.
Zone 9 Weathered Bedrock 1.E-07 1.E-07
Zone 10 Competent Bedrock 2.E-08 2.E-08 BLACKWATER GOLD PROJECT
Zone 7 Higher Permeability Bedrock Zone in Deposit 1.E-06 1.E-06
BASELINE MODEL
HYDRAULIC CONDUCTIVITY ZONES (LAYER 4)
NOTES:
1. THE CONTOUR LINES SHOWN ABOVE ILLUSTRATE THE TOP ELEVATION
P/A NO. REF. NO.
OF LAYER 4 (masl). VA101-457/6-13 13

REV
0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB FIGURE B.4 0
REV DATE DESCRIPTION PREP'D CHK'D APP'D
 Model X-Coordinate (m)
0 5000 10000 15000 20000 25000 30000
0

5000
Model Y-Coordinate (m)

10000

15000

20000
Horizontal Hydraulic Vertical Hydraulic
Zone Color Material Type
Conductivity Kh (m/sec) Conductivity Kv (m /sec)
Zone 10 Competent Bedrock 2.E-08 2.E-08 NEW GOLD INC.
Zone 7 Higher Permeability Bedrock Zone in Deposit 1.E-06 1.E-06 BLACKWATER GOLD PROJECT

NOTES: BASELINE MODEL

1. THE CONTOUR LINES SHOWN ABOVE ILLUSTRATE THE TOP ELEVATION HYDRAULIC CONDUCTIVITY ZONES (LAYER 5)
OF LAYER 5 (masl).

P/A NO. REF. NO.

VA101-457/6-13 13

REV
0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB FIGURE B.5 0
REV DATE DESCRIPTION PREP'D CHK'D APP'D
 Model X-Coordinate (m)
0 5000 10000 15000 20000 25000 30000
0

5000
Model Y-Coordinate (m)

10000

15000

20000
Horizontal Hydraulic Vertical Hydraulic
Zone Color Material Type
Conductivity Kh (m /s ec) Conductivity Kv (m/sec)
Zone 5 Competent Bedrock 1.E-08 1.E-08 NEW GOLD INC.
Zone 7 Higher Permeability Bedrock Zone in Deposit 1.E-06 1.E-06 BLACKWATER GOLD PROJECT

NOTES: BASELINE MODEL

1. THE CONTOUR LINES SHOWN ABOVE ILLUSTRATE THE TOP ELEVATION HYDRAULIC CONDUCTIVITY ZONES (LAYERS 6, 7 AND 8)
OF LAYER 6 (masl).

P/A NO. REF. NO.

VA101-457/6-13 13

REV
0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB FIGURE B.6 0
REV DATE DESCRIPTION PREP'D CHK'D APP'D
 Model X-Coordinate (m)
0 5000 10000 15000 20000 25000 30000
0

5000
Model Y-Coordinate (m)

10000

15000

20000
Horizontal Hydraulic Ve rtical Hydraulic
Zone Color Material Type
Conductivity Kh (m /s ec) Conductivity Kv (m/s ec)
Zone 8 Competent Bedrock 1.E-09 1.E-09 NEW GOLD INC.
BLACKWATER GOLD PROJECT

NOTES: BASELINE MODEL

1. THE CONTOUR LINES SHOWN ABOVE ILLUSTRATE THE TOP ELEVATION HYDRAULIC CONDUCTIVITY ZONES (LAYERS 9 AND 10)
OF LAYER 9 (masl).

P/A NO. REF. NO.

VA101-457/6-13 13

REV
0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB FIGURE B.7 0
REV DATE DESCRIPTION PREP'D CHK'D APP'D
NEW GOLD INC.
BLACKWATER GOLD PROJECT

APPENDIX C

GENERAL ARRANGEMENTS

(Pages C-1 to C-3)

NUMERICAL GROUNDWATER VA101-457/6-13 Rev 0

MODELLING REPORT January 16, 2014
NEW GOLD INC.
BLACKWATER GOLD PROJECT

APPENDIX D

MODPATH PARTICLE SIMULATION RESULTS

(Pages D-1 to D-16)

NUMERICAL GROUNDWATER VA101-457/6-13 Rev 0

MODELLING REPORT January 16, 2014
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6000

5000

4000
Elevation (m)

3000

2000

1000

GHB Flux (m3/day) 222.8

0 Drain Flux (m3/day)

0 0.5 5583.26 1 1.5 2 2.5
GHB Flux (RPD%) -

-1000

Area (ha)

NOTES:
1. PARTICLE TRACES ARE COLOURED ACCORDING TO THE MODEL LAYER IT IS TRAVELLING IN.
2. THE CONTOURS SHOWN ABOVE ARE OF WATER TABLE ELEVATION (masl). NEW GOLD INC.
BLACKWATER GOLD PROJECT

TSF D MODPATH PARTICLE ANALYSIS
PARTICLES BY MODEL LAYER
P/A NO. REF. NO.
VA101-457/6 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE D.1 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix D\[Appendix D.xls]D2 Print 1/17/2014 11:49 AM

NOTES:
1. PARTICLE TRACES ARE COLOURED ACCORDING TO THE LOCATION WHERE THE MODPATH PARTICLE
DISCHARGES FROM THE MODEL DOMAIN:
PINK = CREEK 661
TEAL = DAVIDSON CREEK NEW GOLD INC.
BROWN = TSF MAIN EMBANKMENT DRAINS
RED = TSF SOUTH ABUTMENT DRAINS BLACKWATER GOLD PROJECT
ORANGE = TSF SPILLWAY
PURPLE = TSF SITE D POND TSF D MODPATH PARTICLE ANALYSIS
BLUE = ECD SYSTEM
BLACK = NATURAL CHANNEL REPORTING TO TSF
PARTICLES BY DISCHARGE LOCATIONS
2. THE CONTOURS SHOWN ABOVE ARE OF WATER TABLE ELEVATION (masl).
P/A NO. REF. NO.
VA101-457/6 13
0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB
REV
REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE D.2 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix D\[Appendix D.xls]D3 Print 1/17/2014 11:49 AM

Color MODPATH Discharge Locations
Creek 661
Davidson Creek
TSF Main Embankment Drains
TSF South Abutment Drains
ECD System
TSF Spillway
TSF Site D Pond
Natural Channel Upstream of TSF
NOTES:
1. THE EAST DUMP FOOTPRINT IS COLOURED ACCORDING TO THE LOCATION WHERE THE MODPATH
PARTICLE DISCHARGES. NEW GOLD INC.
2. THE CONTOURS SHOWN ABOVE ARE OF WATER TABLE ELEVATION (masl).
BLACKWATER GOLD PROJECT

TSF D MODPATH PARTICLE ANALYSIS
FOOTPRINT BY PARTICLE DISCHARGE LOCATION
P/A NO. REF. NO.
VA101-457/6 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE D.3 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix D\[Appendix D.xls]D4 Print 1/17/2014 11:49 AM

NOTES:
NEW GOLD INC.
1. PARTICLE TRACES ARE COLOURED ACCORDING TO THE MODEL LAYER IT IS TRAVELLING IN.
3. PARTICLES WERE INSERTED INTO LAYERS 1 THROUGH 8. BLACKWATER GOLD PROJECT
2. THE CONTOURS SHOWN ABOVE ARE OF WATER TABLE ELEVATION (masl).
PIT LAKE MODPATH PARTICLE ANALYSIS
PARTICLES BY MODEL LAYER
P/A NO. REF. NO.
VA101-457/6 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE D.4 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix D\[Appendix D.xls]D5 Print 1/17/2014 11:49 AM

NOTES:
1. PARTICLE TRACES ARE COLOURED ACCORDING TO THE LOCATION WHERE THE MODPATH PARTICLE NEW GOLD INC.
DISCHARGES FROM THE MODEL DOMAIN:
PURPLE = CHANNEL TO EAST DUMP DRAINAGE DITCHES BLACKWATER GOLD PROJECT
PINK = CREEK 661
TEAL = DAVIDSON CREEK PIT LAKE MODPATH PARTICLE ANALYSIS
BLUE = LOWER EAST DUMP DRAINAGE DITCH PARTICLES BY DISCHARGE LOCATIONS
BLACK = NATURAL CHANNEL UPSTREAM OF TSF
BROWN = TSF D EMBANKMENT DRAINS
P/A NO. REF. NO.
2. THE CONTOURS SHOWN ABOVE ARE OF WATER TABLE ELEVATION (masl). VA101-457/6 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE D.5 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix D\[Appendix D.xls]D6 Print 1/17/2014 11:49 AM

Layer 1 Layer 2 Layer 3

Layer 4 Layer 5 Layer 6

NOTES:
Layer 7 Layer 8 1. THE IMAGES OF MODEL 1 LAYERS THROUGH 8 ABOVE
PRESENT MODPATH PARTICLE TRACES BY THE LAYER IN WHICH
THEY ORIGINATE.
2. PARTICLE TRACES ARE COLOURED ACCORDING TO THE
MODEL LAYER IT IS TRAVELLING IN.
3. CONTOURS INDICATE WATER TABLE ELEVATION (masl)

NEW GOLD INC.

BLACKWATER GOLD PROJECT

PIT LAKE MODPATH PARTICLE ANALYSIS

PARTICLES BY STARTING LAYER

P/A NO. REF. NO.

VA101-457/6 13
0 16JAN'14 ISSUED FOR REPORT KTD CAS KJB
REV
REV DATE DESCRIPTION PREP'D CHK'D APP'D FIGURE D.6 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix D\[Appendix D.xls]D7 Print 1/17/2014 11:49 AM

NOTES:
1. PARTICLE TRACES ARE COLOURED ACCORDING TO THE MODEL LAYER IT IS TRAVELLING IN.
2. THE CONTOURS SHOWN ABOVE ARE OF WATER TABLE ELEVATION (masl). NEW GOLD INC.
BLACKWATER GOLD PROJECT

EAST DUMP MODPATH PARTICLE ANALYSIS
PARTICLES BY MODEL LAYER
P/A NO. REF. NO.
VA101-457/6 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE D.7 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix D\[Appendix D.xls]D8 Print 1/17/2014 11:49 AM

NOTES:
1. PARTICLE TRACES ARE COLOURED ACCORDING TO THE LOCATION WHERE THE MODPATH PARTICLE
DISCHARGES FROM THE MODEL DOMAIN: NEW GOLD INC.
DARK PURPLE = NATURAL CHANNEL REPORTING TO TSF
BLUE = LOWER EAST DUMP DRAINAGE DITCH
BLACKWATER GOLD PROJECT
GREEN = CHANNEL TO EAST DUMP DRAINAGE DITCHES
PURPLE = SPRINGS WITHIN EAST DUMP FOOTPRINT EAST DUMP MODPATH PARTICLE ANALYSIS
BROWN = TSF SPILLWAY PARTICLES BY DISCHARGE LOCATION
2. THE CONTOURS SHOWN ABOVE ARE OF WATER TABLE ELEVATION (masl).
P/A NO. REF. NO.
VA101-457/6 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE D.8 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix D\[Appendix D.xls]D9 Print 1/17/2014 11:49 AM

NOTES: NEW GOLD INC.

1. THE EAST DUMP FOOTPRINT IS COLORED ACCORDING TO THE LOCATION WHERE THE MODPATH
PARTICLE DISCHARGES: BLACKWATER GOLD PROJECT
BLUE = LOWER EAST DUMP DRAINAGE DITCH
DARK PURPLE = NATURAL CHANNEL REPORTING TO TSF EAST DUMP MODPATH PARTICLE ANALYSIS
GREEN = CHANNEL TO EAST DUMP DRAINAGE DITCHES
PURPLE = SPRINGS WITHIN EAST DUMP FOOTPRINT FOOTPRINT BY PARTICLE DISCHARGE LOCATION
ORANGE = TSF SPILLWAY
2. THE CONTOURS SHOWN ABOVE ARE OF WATER TABLE ELEVATION (masl). P/A NO. REF. NO.
VA101-457/6 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE D.9 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix D\[Appendix D.xls]D10 Print 1/17/2014 11:49 AM

NOTES: NEW GOLD INC.

1. PARTICLE TRACES ARE COLOURED ACCORDING TO THE MODEL LAYER IT IS TRAVELLING IN.
2. THE CONTOURS SHOWN ABOVE ARE OF WATER TABLE ELEVATION (masl). BLACKWATER GOLD PROJECT

WEST DUMP MODPATH PARTICLE ANALYSIS
PARTICLES BY MODEL LAYER
P/A NO. REF. NO.
VA101-457/6 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE D.10 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix D\[Appendix D.xls]D11 Print 1/17/2014 11:49 AM

NOTES: NEW GOLD INC.

1. PARTICLE TRACES ARE COLOURED ACCORDING TO THE LOCATION WHERE THE MODPATH PARTICLE
DISCHARGES FROM THE MODEL DOMAIN: BLACKWATER GOLD PROJECT
GREEN = SPRINGS WITHIN WEST DUMP FOOTPRINT
PINK = NATURAL DRAINAGE REPORTING TO TSF WEST DUMP MODPATH PARTICLE ANALYSIS
PURPLE = TSF SITE C POND PARTICLES BY DISCHARGE LOCATION
2. THE CONTOURS SHOWN ABOVE ARE OF WATER TABLE ELEVATION (masl).
P/A NO. REF. NO.
VA101-457/6 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE D.11 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix D\[Appendix D.xls]D12 Print 1/17/2014 11:49 AM

NOTES: NEW GOLD INC.

1. THE EAST DUMP FOOTPRINT IS COLORED ACCORDING TO THE LOCATION WHERE THE MODPATH
PARTICLE DISCHARGES: BLACKWATER GOLD PROJECT
PINK = NATURAL CHANNEL REPORTING TO TSF
GREEN = SPRINGS WITHIN WEST DUMP FOOTPRINT WEST DUMP MODPATH PARTICLE ANALYSIS
PURPLE = TSF SITE C POND
2. THE CONTOURS SHOWN ABOVE ARE OF WATER TABLE ELEVATION (masl). FOOTPRINT BY PARTICLE DISCHARGE LOCATION
P/A NO. REF. NO.
VA101-457/6 13

0 16JAN'14 ISSUED WITH REPORT KTD CAS KJB REV  

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE D.12 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix D\[Appendix D.xls]D13 Print 1/17/2014 11:49 AM

NOTES: NEW GOLD INC.

1. PARTICLE TRACES ARE COLOURED ACCORDING TO THE MODEL LAYER IT IS TRAVELLING IN.
BLACKWATER GOLD PROJECT

PLANT SITE MODPATH PARTICLE ANALYSIS
PARTICLES BY MODEL LAYER
P/A NO. REF. NO.
VA101-457/6 13

0 16JAN`14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE D.13 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix D\[Appendix D.xls]D14 Print 1/17/2014 11:49 AM

NOTES: NEW GOLD INC.

1. PARTICLE TRACES ARE COLOURED ACCORDING TO THE LOCATION WHERE THE MODPATH PARTICLE
DISCHARGES FROM THE MODEL DOMAIN: BLACKWATER GOLD PROJECT
BLUE = LOWER EAST DUMP DRAINAGE DITCH
PINK = NATURAL CHANNEL REPORTING TO TSF PLANT SITE MODPATH PARTICLE ANALYSIS
2. THE CONTOURS SHOWN ABOVE ARE OF WATER TABLE ELEVATION (masl). PARTICLES BY DISCHARGE LOCATION

P/A NO. REF. NO.

VA101-457/6 13

0 16JAN`14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE D.14 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix D\[Appendix D.xls]D15 Print 1/17/2014 11:49 AM

NOTES: NEW GOLD INC.

1. THE EAST DUMP FOOTPRINT IS COLORED ACCORDING TO THE LOCATION WHERE THE MODPATH
PARTICLE DISCHARGES: BLACKWATER GOLD PROJECT

PINK = NATURAL CHANNEL REPORTIG TO TSF PLANT SITE MODPATH PARTICLE ANALYSIS

BLUE = LOWER EAST DUMP DRAINAGE DITCH
FOOTPRINT BY PARTICLE DISCHARGE LOCATION
P/A NO. REF. NO.
VA101-457/6 13

0 16JAN`14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE D.15 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix D\[Appendix D.xls]D16 Print 1/17/2014 11:49 AM

NOTES: NEW GOLD INC.

1. PARTICLE TRACES ARE COLOURED ACCORDING TO THE MODEL LAYER IT IS TRAVELLING IN.
2. ALL PARTICLES SHOWN ABOVE DISCHARGE INTO TSF PONDS C OR D. AS SUCH, NO FIGURE BLACKWATER GOLD PROJECT
ILLUSTRATING TSF C MODPATH DISCHARGE LOCATIONS OR HSU BALANCE WAS COMPLETED.
TSF C MODPATH PARTICLE ANALYSIS
PARTICLES BY MODEL LAYER
P/A NO. REF. NO.
VA101-457/6 13

0 16JAN`14 ISSUED WITH REPORT KTD CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE D.16 0
NEW GOLD INC.
BLACKWATER GOLD PROJECT

APPENDIX E

HISTOGRAMS OF MODPATH PARTICLE TRAVEL TIMES

(Pages E-1 to E-5)

NUMERICAL GROUNDWATER VA101-457/6-13 Rev 0

MODELLING REPORT January 16, 2014
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix E\[Appendix E Histograms.xls]FIG E.1 Print 1/17/2014 11:49 AM

NOTES: NEW GOLD INC.

1. HISTOGRAM BIN SIZE IS 50 YEARS.
BLACKWATER GOLD PROJECT

HISTOGRAMS OF PARTICLE TRAVEL TIMES

TSF SITE D

P/A NO. REF. NO.

VA101-457/6 13

0 16JAN'14 ISSUED WITH REPORT MAF CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE E.1 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix E\[Appendix E Histograms.xls]FIG E.2 Print 1/17/2014 11:49 AM

NOTES: NEW GOLD INC.

1. HISTOGRAM BIN SIZE IS 25 YEARS.
BLACKWATER GOLD PROJECT

HISTOGRAMS OF PARTICLE TRAVEL TIMES
PIT LAKE
P/A NO. REF. NO.
VA101-457/6 13

0 16JAN'14 ISSUED WITH REPORT MAF CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE E.2 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix E\[Appendix E Histograms.xls]FIG E.3 Print 1/17/2014 11:49 AM

NOTES: NEW GOLD INC.

1. HISTOGRAM BIN SIZE IS 25 YEARS.
BLACKWATER GOLD PROJECT

HISTOGRAMS OF PARTICLE TRAVEL TIMES
EAST WASTE ROCK DUMP
P/A NO. REF. NO.
VA101-457/6 13

0 16JAN'14 ISSUED WITH REPORT MAF CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE E.3 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix E\[Appendix E Histograms.xls]FIG E.4 Print 1/17/2014 11:49 AM

NOTES:
1. HISTOGRAM BIN SIZE IS 25 YEARS. NEW GOLD INC.
BLACKWATER GOLD PROJECT

HISTOGRAMS OF PARTICLE TRAVEL TIMES
WEST WASTE ROCK DUMP
P/A NO. REF. NO.
VA101-457/6 13

0 16JAN'14 ISSUED WITH REPORT MAF CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE E.4 0
 \\van11\prj_file\1\01\00457\06\A\Report\13 - Numerical Groundwater Modelling Report\Rev0\Appendices\Appendix E\[Appendix E Histograms.xls]FIG E.5 Print 1/17/2014 11:49 AM

NOTES: NEW GOLD INC.

1. HISTOGRAM BIN SIZE IS 10 YEARS.
BLACKWATER GOLD PROJECT

HISTOGRAMS OF PARTICLE TRAVEL TIMES
PLANT SITE
P/A NO. REF. NO.
VA101-457/6 13

0 16JAN'14 ISSUED WITH REPORT MAF CAS KJB REV

REV DATE DESCRIPTION PREP'D CHK'D APP'D
FIGURE E.5 0