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Market: TSX-V
Sector: Gold Mining
EPIC: NGG
Latest Price: 0.02  (50.00% Ascending)
52-week High: 0.09
52-week Low: 0.01
Market Cap: 3.51M
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New Guinea Gold
www.newguineagold.ca

New Guinea Gold has a 92% interest in the Sinivit Gold Mine in Papua New Guinea plus additional exploration acreage in the surrounding region.

 

Full New Guinea Gold profile here
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New Guinea Gold shares slide as it halts operations at Mt Sinivit

28th Dec 2011, 3:23 pm by Deborah Sterescu
New Guinea Gold shares slide as it halts operations at Mt Sinivit

New Guinea Gold Corp (CVE:NGG) said Wednesday that mining and processing at its Mt Sinivit operation in Papua New Guinea has temporarily been halted, sending shares down more than 16 percent.

The company said representatives of the Wild Dog Mining Area Landowner Association (WDMALA) and Lulai Nakama Association have occupied the mine-site and forced its temporary closure.

All staff have been stood down safely and police presence is being maintained on site, New Guinea added.

On 12 December 2011, New Guinea received a letter from the landowners' lawyers demanding that outstanding royalties be paid to the Mineral Resources Authority (MRA) within 48 hours, failing which the landowners would shut down New Guinea's mining operations.

New Guinea said it has been waiting on a Court settlement between the Landowning Clans since early 2010, following instructions from the MRA to pay the royalties to the WDMALA.

"Despite assurances and undertakings from NGG that their demand would be met and the funds would be paid to the MRA, the Landowners, following a meeting with the Mine Management on 21st December 2011, occupied the mine site on 22 December 2011," the company said in a statement.

The royalties were released to the MRA the same day, New Guinea added, but the landowners remain in occupation of the site.

The company is currently seeking court orders to remove "those persons occupying the mine site illegally" before pursuing a negotiated settlement of landowner grievances.

Acting CEO, Greg Heaney, commented: "This is a very disappointing situation and the company was left with little choice but to ensure the safety of its staff and to cease operations until such times as those illegally occupying its mine and associated premises are removed by the lawful authorities.

"We are progressing matters on all fronts seeking an expeditious conclusion to this matter."

Shares fell more than 16.6 percent Wednesday, to trade at $0.05 as of 3:01pm ET.

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