New Gold (AMEX:NGD) Shares Plunge as Mexican Court Denies Appeal

New Gold (AMEX:NGD) (TSE:NGD) said today it has had its appeal concerning the revocation of its environmental permit at its Cerro San Pedro mine, denied by a Mexican court.

This evidently reverses an injunction they won in December against the original ruling which force operations at the mine to be suspended, but which freed them to continue production to this point in 2010.

For New Gold this is a big deal, as the Cerro San Pedro mine accounts for 30 percent of the overall annual gold production of the company, and if it is forced to stop production again, it will make a huge impact on their bottom line.

It isn't clear if a complete shutdown is in the works, as the full decision hasn't been received by New Gold as of this writing.

In New York and Toronto New Gold was down over 10.00 percent, as of 12:57 PM EDT.