UPDATE 1-New Gold says full operations to resume at Mexican mine

* Says full ops to resume at Cerro San Pedro mine

* Reaffirms 2010 production outlook at mine

March 17 (Reuters) - Canadian gold miner New Gold (NGD.TO) said full operations will resume at its Cerro San Pedro mine in Mexico after a federal district court lifted restrictions on the use of explosives at the mine.

Operations at the mine were suspended in November last year after the country's environment ministry, acting on a federal court ruling, revoked the mine's 2006 environmental permit.

The company, which owns assets in the United States, Mexico, Australia, Canada, Brazil and Chile, also reaffirmed its gold production outlook of 95,000 to 105,000 ounces at a total cash cost of C$390 to C$410 per ounce sold, for the year, at the Cerro San Pedro mine.

The mine had faced opposition since it began operations in 2006 from local groups and environmentalists, who said the site in the northern state of San Luis Potosi was historically important and the operation threatened local watersheds.

Hearings are ongoing in relation to appeals against the nullification of the Cerro San Pedro mine's 2006 Environmental Impact Statement and the related order suspending mining operations issued by PROFEPA, the Mexican environmental enforcement agency, the company added.

Shares of the Vancouver-based company closed at C$4.58 Wednesday on the Toronto Stock Exchange. (Reporting by Arnika Thakur in Bangalore; Editing by Maju Samuel)