New Gold has announced that the Cerro San Pedro mine in Mexico is to resume full operations, following the removal of explosives restrictions permits.
The company said it will continue operations at the site until the results of an appeal case are announced.
The Cerro San Pedro mine is a heap leach operation with the ability to increase the use of leased mining equipment.
This will help New Gold to cover the impact on production that resulted from the delayed granting of the blasting permit.
The restriction was lifted after a Federal District Court in San Luis Potosi overruled an earlier court order prohibiting the use of explosives at the mine.
The renewal of the explosives permit was originally challenged by a group opposed to the mine, the company said in a statement.
New Gold said it is working with local and federal government officials to establish a long-term solution that should result in uninterrupted operation at the mine.