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(Kitco News) - Shares of gold and copper producer New Gold (TSX: NGD) (NYSE: NGD) traded down 7.75% today after the company announced its decision to suspend underground mining activities at the New Afton mine in B.C., Canada.
In a statement, New Gold said that during regular inspections of the New Afton tailings storage facility completed on August 9th, the company observed “geotechnical variances” that require further review by the Engineer of Record (EOR).
“Out of an abundance of caution, the company has elected to suspend underground mining activities allowing its EOR appropriate time to review the findings,” New Gold noted in a press release.
The company said that milling operations continue unaffected and are utilizing the existing surface stockpile, adding that in-pit tailings deposition is ongoing as planned.
New Gold also reported it has alerted and is working with the relevant regulatory authorities to address the situation, and will issue further updates as appropriate.
New Gold is a Canadian-focused intermediate mining company with a portfolio of two core producing assets in Canada, the Rainy River gold mine and the New Afton copper-gold mine.
