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EXHIBIT 99.1
Press Release Dated January 13, 2005
NEWGOLD, INC. ANNOUNCES CONTRACT TO JOINT VENTURE GOLD MINING
PROPERTIES AS WELL
AS MOVE INTO INDUSTRIAL MINERALS
CAMERON PARK, CA - January 13, 2005 - Newgold, Inc. (NGLD:
OTCBB) announced
today that it has recently signed a letter of intent to joint
venture two
separate leasehold mining interests in Lander County,
Nevada.
The first leasehold interest, known as the Red Cap Project,
consists of
approximately 23 unpatented mining claims while the second
leasehold interest,
known as the BXA project, consists of approximately 77
unpatented mining claims.
Located on the Battle Mountain-Eureka mineral belt and the
Cortez trend, these
mineral trends are parallel to the Carlin Trend about 50
kilometers to the east.
The Red Cap Project is located close to Placer Dome Inc.'s
(NYSE) Cortez mine
complex gold mine holdings; in 2003 Placer Dome Inc. produced at
Cortez in
excess of one million ounces of gold for the sixth consecutive
year.
The agreement calls for Newgold to make annual expenditures of
$250,000,
$500,000 and $850,000 over the next three years, respectively,
on these
leaseholds. When each annual expenditure is completed Newgold
will earn a 22.22%
interest in the joint venture, which if fully funded by Newgold,
will result in
an ultimate 66.66% overall interest in the leaseholds. Newgold's
joint venture
partner is ASDi LLC, a wholly owned entity of its Chairman and
CEO, A. Scott
Dockter. Newgold will be the operator of the joint venture.
Newgold expects the
closing of the joint venture to close on or before March, 31,
2005.
Newgold also announced today that is in negotiations to buy a
substantial
interest in an industrial mineral mining project located in
Amador County
California which currently provides materials to the greater
Sacramento area.
Newgold would buy its interest from or merge with ASD Corp, a
wholly owned
entity of its Chairman and CEO, A. Scott Dockter. The site is
fully permitted
an
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