Gabriel upgrades Rosia Montana property

Denver-based Gabriel Resources (GBU-V) says its 65%-held Rosia Montana gold-silver property in northwestern Romania contains the equivalent of 7 million oz. gold and 37 million oz. silver.

The revised resource estimate is based on 85 drill holes spanning 14,646 metres at the Cetate zone and 28,000 metres of underground sampling on 16 underground levels at the Cirnic and Cirnicel zones.

Using a cutoff grade of 1 gram, Gabriel outlined a measured, indicated and inferred resource of 113 million tonnes grading 1.9 grams gold and 10 grams silver per tonne within the three zones.

The resource estimate was completed by Resource Service Group of Australia in accordance with that country’s guidelines.

A prefeasibility study of the Cetate and Cirnic zones is under way, and, upon its completion in November, Gabriel will be able to increase its interest to 80% from 65%. The company will continue to hold a pre-emptive right on the remaining 20%, held by a state-owned mining firm.

Since signing the joint-venture agreement in June 1997, Gabriel has increased the resource base almost fourfold. The company hopes to continue this trend by testing the three zones at depth and by conducting infill drilling in the Igre-Jig-Vaidoaia area.

Situated in a region with a rich gold mining heritage, the property encompasses six zones of gold-silver mineralization. The zones, described as epithermal to mesothermal, are hosted in andesitic and dacitic volcanic rocks and are generally low in sulphides and amendable to large-scale, open-pit mining methods.