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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: Pacing The Cage who wrote (68085)	11/21/2009 5:36:55 PM
From: Rocket Red	Read Replies (1) \| Respond to of 78419

New Gold suffers a major setback Peter Koven, Financial Post Published: Thursday, November 19, 2009 NEW GOLD INC $3.85 $0.00 (0.00%) High: $3.91 Low: $3.61 Data delayed at least 15 min Related Topics New Gold Inc. Metallica Resources Inc. Materials Sector Randall Oliphant TORONTO -- Canadian miner New Gold Inc. has suffered a major setback after anti-mining activists succeeded in forcing the company to suspend one of its most important projects. New Gold said Thursday that it shut down its Cerro San Pedro gold mine following an order from Mexican authorities. The company is pursuing "all legal appeals" and is hopeful that it can be re-started quickly. The closure revolves around an environmental approval that New Gold predecessor Metallica Resources Inc. received 10 years ago. Since then, a small group in Mexico has complained about the process through which the approval was granted, and they finally won a legal ruling forcing the suspension of the mine. "They're really trying to look for avenues to slow down mining in Mexico," New Gold executive chairman Randall Oliphant said in an interview. Mr. Oliphant said that the majority of people living around Cerro San Pedro are in favour of the project, including 21 of the 24 families that live in the closest town. He said the company has been a good corporate citizen in the area, pointing to the infrastructure, medical services and other economic activity that it has brought to a very poor part of Central Mexico. He is hopeful that the mine can be re-started in "days or weeks" as opposed to months, based on a couple of similar situations in Mexico that were resolved quickly. In the short-term, the situation appears to be getting more difficult. A group of Mexican and Canadian organizations, including NGO MiningWatch Canada, sent out a press release Thursday with allegations that New Gold employees at Cerro San Pedro attacked three villagers they blame for the mine's closure. The Mexican group also said it is preparing criminal and civil suits against New Gold and its Mexican subsidiary. Jim Currie, New Gold's chief operating officer, said the company has talked with authorities and has no knowledge of any assault being committed. New Gold shares fell 15% after the suspension Thursday, which some analysts said was an over-reaction to the news. "We do not believe that the [Cerro San Pedro] mine is an environmental liability that warrants permanent closure," RBC Capital Markets analyst Michael Curran wrote in a note to clients. Financial Post pkoven@nationalpost.com NEW GOLD INC. Ticker NGD/TSX Close $3.85, down 69¢ Vol. 27,895,308 Avg. 6-month vol. 4,591,108 Close