Gabriel expands Rosia Montana

An updated resource estimate has added 1.5 million oz. gold and 6.4 million oz. silver to the advanced Rosia Montana gold project in Romania.

Recently, 80%-owner Gabriel Resources (GBU-T) tested previously unexplored extensions to existing resources and reserves at the Orlea and Igre zones, as well as a mineralizeda area between Igre and Tarina. The Igre and Tarina zones are north of Cetate and Cirnic, the two main deposits at Rosia Montana.

Based on a cutoff of 0.6 gram gold per tonne, measured resources now stand at 135.5 million tonnes grading 1.6 grams gold and 9 grams silver, equivalent to 6.9 million oz. gold and 37.8 million oz. silver.

In the indicated category are an additional 217 million tonnes of 1.1 grams gold and 4 grams silver, for a count of 7.7 million oz. gold and 29.5 million oz. silver.

Forty-eight million tonnes at slightly lower grades are listed as inferred.

The updated resource is based on 69,199 metres of surface and underground channel sampling, 83,125 metres of reverse-circulation drilling, and 30,119 metres of surface and underground diamond drilling, in a total of 814 holes.

Gabriel has acquired more than 36% of all residential properties necessary to begin building the new mine. In the first quarter of 2004, the company will start building an access road and related infrastructure for the new town site at Piatra Alba.

An environmental impact assessment is due for completion early in the new year.

The latest development plan has actual mine construction beginning in the second quarter of 2005, a delay of six months, compared with the previous schedule.

At the Bucium project, immediately southeast of Rosia Montana, Gabriel has finished drilling 21 holes on the Rodu-Frasin target, and 10 follow-up holes are planned. Gabriel will calculate a resource estimate for Bucium in the first quarter of 2004.