HOUSTON, Nov 18 (Reuters) - A motion by Toronto-listed

miner Gold Reserve ( GDRZF ) to stay all further proceedings in

the court-ordered auction of Citgo Petroleum's parent in

Delaware was denied on Tuesday by a U.S. court of appeals, a

filing showed.

The denial is another setback for the miner as it fights in

court to keep alive its $7.9 billion bid for Citgo's parent PDV

Holding, a U.S. subsidiary of Venezuela's state-owned energy

company Petróleos de Venezuela, S.A., known as PDVSA.

A court officer overseeing the sale process in late August

recommended

a rival offer from an affiliate of Elliott Investment

Management.

Motions to

disqualify

Delaware Judge Leonard Stark and court advisors involved in

the evaluation over alleged conflicts of interest, which were

filed by Gold Reserve ( GDRZF ) and lawyers representing Venezuela, also

were denied earlier this month.

"The request for oral argument and the mandamus petition

are denied," Judge Patty Shwartz from the Court of Appeals of

the Third Circuit said in an order signed on Tuesday.

A final decision on the auction's winner is pending.

Fifteen creditors expect to get up to $19 billion from auction

proceeds in a process aimed to compensate them for debt defaults

and expropriations in Venezuela. PDV had been found liable for

the South American country's debts as part of the eight-year

court case.

Gold Reserve ( GDRZF ) did not immediately comment, but said last

week the sale process was "plagued with significant conflicts of

interest."

Boards supervising Citgo last week said they were

"concerned over irregularities" in the process, and added that

the denial of motions to freeze the auction and discuss the

allegations "casts a pall over the integrity of the entire

process."