Vancouver – Gabriel Resources’ (BGU-T) much delayed Rosia Montana gold-silver project has been issued an archaeological discharge certificate, a key permit needed to move ahead with construction.
The positive news send Gabriel’s share price up 68¢ to $8 on 2.5 million shares traded. The company, which owns 80.5% of the project, has been working to develop what will be one of Europe’s largest open pit mines since 1999, but has been plagued by permitting and procedural delays.
The archaeological permit is required because the proposed Carnic open pit potentially threatens a vast network of mining tunnels dating from the Roman Empire. Gabriel maintains that it is investing millions of dollars to preserve the site but numerous groups still oppose the development.
Commenting on the news, Gabriel president and CEO stated “The granting of the archaeological discharge certificate for Carnic is a significant step to receipt of other key permits and approvals required to advance the Rosia Montana gold and silver project, which will deliver much-needed economic development and employment to the region as well as to Romania.”
Gabriel is still working to secure approval of its environmental impact assessment. The Romanian government suspended the environmental permitting process in 2007 following pressure from a coalition of environmentalists, but restarted the review process last September. The company also needs approval of its Zonal Urban Plan, covering construction layout plans.
Rosia Montana is very much Gabriel’s flagship project, and one of the largest undeveloped gold projects in the world. The property hosts 214.9 million proven and probable reserve tonnes grading 1.46 grams gold per tonne and 6.9 grams silver per tonne for 10.1 million oz. gold and 47.7 million oz. silver. Measured and indicated resources stand at 350 million tonnes grading 1.3 grams gold and 6 grams silver for 14.6 million oz. gold and 64.9 million oz. silver.
The company estimates that the deposit could produce about 511,000 oz. gold annually at an estimated average total cash cost of US$335 per oz. over a 16-year mine life, and yield an internal rate of return of 28% at a gold price of US$900 per oz.
Gabriel has 349 million shares outstanding and roughly $177 million in cash on hand.
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