New Gold halts New Afton mine on tailings safety woes
Shares in New Gold (TSX: NGD; NYSE: NGD) fell more than 11% in Toronto on Thursday after it halted underground mining activities at its New Afton gold-copper mine in Kamloops, British Columbia, following an inspection.
The Canadian company said experts observed geotechnical variances at the mine’s tailings storage facility during an inspection on Wednesday. It added the area will have to be further reviewed by the company’s engineer.
As a result, New Gold said that it has suspended underground mining activities to allow for the review to take place.
Milling operations will continue as normal, using existing surface stockpiles while the review takes place, it said.
Shares in New Gold were down more than 11% to $1.26 at mid-day on the Toronto Stock Exchange and 10.5% to US94¢ in New York.
