Stock in Goldgroup Mining (TSX:GGA) was hammered on Monday after the company announced it has deferred the evaluation of the Environmental Impact Assessment for its Caballo Blanco project in Mexico.
The company decided to wait until the new administration of President-elect Enrique Peña Nieto takes power, saying Peña Nieto has made public his interest in promoting investment in the mining sector.
By mid-afternoon the Vancouver-based miner was trading down 13% at $0.40 on the Toronto big board, with more than a million shares changing hands. The company, now worth $52 million, is down more than 64% since the start of the year.
The 100%-owned mining project located in Veracruz faces local opposition due to environmental concerns.
Caballo Blanco has an indicated resource of 575,000 gold oz at 28.9 million tonnes grading 0.62 g/t Au.