VANCOUVER, Jan. 21 /CNW/ - New Gold Inc. ("New Gold") (TSX and NYSE AMEX-NGD) today provides an update on its Cerro San Pedro mine and the upcoming hearing dates related to the appeals filed at various courts by the company resulting from a Mexican Federal Court's September 21, 2009 ruling that nullified the Environmental Impact Statement for the company's Cerro San Pedro mine.
<< - January 28, 2010 - hearing scheduled to commence in the First District Court in San Luis Potosi, related to New Gold's filing that seeks to overturn PROFEPA's, the Mexican environmental enforcement agency, November 18, 2009 shutdown order. An injunction against this order was delivered on December 14, 2009 which allowed New Gold to re-commence mining operations pending the outcome of this matter. - February 3, 2010 - hearing scheduled to commence in the Third District Court in Mexico City, related to New Gold's filing that seeks to overturn the decision by a Federal Court of Fiscal and Administrative Justice that ordered SEMARNAT, the Mexican government's environmental protection agency, to cancel the company's Environmental Impact Statement. >>
New Gold also advises that on February 9, 2010 a hearing is scheduled to commence in the Fourth District Court in San Luis Potosi, related to a challenge by opposition to the mine to the annual renewal of the explosives permit at Cerro San Pedro. Despite this challenge, the Mexico City office of SEDENA, the Mexican Secretariat of National Defence, has granted the 2010 explosives permit for the year for Cerro San Pedro. However, the local San Luis Potosi office of SEDENA has decided to not grant the company its quarterly explosives permit renewal for the first quarter of 2010 pending resolution of the court hearing.
Based on the decision by the San Luis Potosi office of SEDENA, no additional blasting will take place at Cerro San Pedro until the above noted hearing regarding the explosives permit is concluded. Mining operations will continue with a focus on placing the remaining broken ore on the leach pad. The company anticipates that there is sufficient ore to continue this level of operations through the end of January 2010.
New Gold's President and CEO, Robert Gallagher stated, "There has been significant progress in moving the outstanding issues related to Cerro San Pedro's Environmental Impact Statement to a positive outcome. In regard to the explosives permit, the company's legal advisers believe that the outcome of the hearing on the renewal will be positive and normal operation of the mine will resume soon thereafter."
As Cerro San Pedro uses equipment leased from a large construction contractor, it is anticipated that sufficient equipment can be deployed to meet budgeted production for 2010.
New Gold will continue to provide updates on this matter.
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