Gabriel news, delaying mine construction...
Gabriel to delay new mine construction at Rosia Montana
Gabriel Resources Ltd (2) GBU
Shares issued 131,214,949 May 11 close $2.33
Wed 12 May 2004 News Release
Mr. Oyvind Hushovd reports
GABRIEL RESOURCES LTD. - FIRST QUARTER CORPORATE AND PROJECT UPDATE
Gabriel Resources has released its first quarter update with respect to the
development of its 80-per-cent-owned Rosia Montana and Bucium projects
situated in Western Romania.
Highlights
- Commencement of construction of the new mine at Rosia Montana is not
anticipated prior to the second quarter of 2006;
- Piatra Alba resettlement site access road is under construction;
- Alba Iulia resettlement site construction planning is substantially
complete.
Rosia Montana project development
Overview
The development and permitting of the first major privately financed new
mine development in Romania continues to be more time consuming and complex
than first anticipated. While many aspects of the development progressed
well, Gabriel continued to experience significant delays during the first
quarter of 2004 in the resettlement and relocation of the Rosia Montana
village and initiating both the construction of new townsites at Piatra
Alba and Alba Iulia and the environmental permitting process for the new
mine. As a result of these delays, Gabriel does not anticipate commencing
construction of the new mine before the second quarter of 2006.
During the past year, Romania updated and harmonized its environmental laws
and regulations with those of the European Union (EU) as part of its
preparation for accession to the EU. The Rosia Montana project will be the
first major new project to be permitted under the new environmental laws.
During 2004, Romania is scheduled to hold local elections during the summer
and federal elections during the fall.
There continue to be a number of circumstances beyond Gabriel's control,
including delays in receiving a number of permits and approvals, which have
the potential to contribute to further delays. Gabriel's objectives and
priorities include efforts to accelerate the development schedule where
possible and to reduce the potential for further delays.
Village relocation
The clarification of legal titles to the approximately 1,000 residential
and more than 1,700 non-residential properties that must be acquired as
part of the resettlement and relocation program continues to be a
complicated and time consuming process; however, Gabriel expects this
aspect of the relocation and resettlement program to be substantially
complete by the end of 2004. Through the end of the first quarter of 2004,
Rosia Montana Gold (RMGC), Gabriel's 80-per-cent-owned Romanian subsidiary,
had acquired approximately 38 per cent of all residential properties
necessary to commence construction of the new mine. Over 95 per cent of all
required properties have now been surveyed and 66 per cent of all legal
titles have now been clarified.
During the first quarter, RMGC began construction of the access road to the
Piatra Alba resettlement site. A number of land classification and zoning
issues need to be resolved at the Piatra Alba site before the permits
necessary to begin construction of the townsite itself can be issued.
Construction planning has been completed at the second site located in Alba
Iulia. A call for tenders for the first phase of construction at Alba
Iulia, consisting of access roads, utilities and the initial 18 residences,
will be made in the summer of 2004.
Environmental permitting
Gabriel continued to experience delays in obtaining the zoning approvals
necessary to allow Gabriel to initiate the environmental impact assessment
(EIA) process. Once the technical memorandum has been filed with the
Romanian regulatory authorities and the terms of reference for the EIA are
confirmed, the EIA itself can be submitted to the Romanian authorities for
review. A substantial part of the documentation for the technical
memorandum and EIA has been completed.
Detailed engineering
Detailed engineering for the new mine, refinements to the design of the
process plant and tailings management facility, support for the
environmental and other permitting processes together with construction
planning, all continue as planned.
Bucium project development
Scoping study
RMGC has tendered for an independent geological and mining consulting firm
to conduct a preliminary assessment (as defined in national instrument
43-101) on the Rodu and Frasin deposits located on the Bucium exploration
project. The preliminary assessment, expected to be completed by the end of
2004, will consider the options available to Gabriel to develop the
project, present a preliminary economic assessment and detail the
requirements for a full feasibility study on the project. |
