TORONTO (miningweekly.com) – Restrictions on the explosives permits for the Cerro San Pedro mine, in Mexico, have been lifted and operations will return to normal, Vancouver-based New Gold said on Wednesday.

The restrictions were lifted after a ruling by a Federal District Court in San Luis Potosi, that overturned an earlier court order banning the use of explosives at the mine.

The renewal of the explosives permit was originally challenged by a group opposed to the mine.

Meanwhile, hearings are continuing regarding appeals against the cancellation of the Cerro San Pedro environmental impact statement and the subsequent order to suspend mining operations, which was issued by the Mexican environmental enforcement agency.

The shutdown order was suspended in December, pending the outcome of the appeal cases, so the company can operate the mine in the meantime.

New Gold said it also expects to be able to offset the effects of delays caused by the blasting permit restrictions, because the Cerro San Pedro mine is a heap-leach operation with the ability to increase the use of leased equipment.

The company has maintained its production forecast of 95 000 oz to 105 000 oz of gold from the mine this year, at a total cash cost of between $390/oz and $410/oz after by-products.

New Gold also has mines in the US and Australia and development projects in Canada and Chile, including a 30% stake in the El Morro project.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.