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Released September 26, 2013 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) - Europe's largest potential gold and silver mine project has hit a roadblock just weeks after getting the provisional green light from the Romanian government.
Romania's ruling Social Democratic Party approved draft legislation at the end of last month to allow Canadian mining company, Gabriel Resources (Yukon, Canada), to proceed with its Rosia Montana proposal, which has been in the works for 14 years. However, it has been reported that the draft law has been rejected by two of three houses in the Parliament before debate. Instead a Special Joint Committee is to be established to review the draft law, a move that prompted Gabriel to threaten legal action against the government. Recently, the company told media that it is ready to sue the government for up to as much as 3 billion ($4 billion) in damages if it cancels the permit.
"We have a very, very robust case, and we believe we have claims up to $4 billion that we can send to the Romanian state," Gabriel Resources Chief Executive Officer, Jonathan Henry, said. "We will go ahead and do that if the vote is against."
Rosia Montana is a community of sixteen villages located in a district known as the Golden Quadrilateral, in the South Apuseni Mountains of Transylvania. Gabriel's Rosia Montana concession area, which affects four of these villages, has reported resources of 17.1 million ounces of gold and 81.1 million ounces of silver (measured and indicated), including 10.1 million ounces of gold and 47.6 million ounces of silver reserves (proven and probable at grades of 1.46 grams per tonne (g/t) and 6.88 g/t respectively).
Gabriel's project is run by the local Rosia Montana Gold Corporation (RMGC), of which it controls a stake in excess of 80%. The government holds the rest but if the project moves ahead, the government will see its share grow to 25%.
The project has been dogged by numerous protests consisting of thousands of Romanians who object to it as it will use cyanide to extract the precious metals.
The Rosia Montana area has been mined for more than 2,000 years, featuring abandoned waste dumps, tailings ponds and approximately 140-kilometers (km) of historical underground workings, some dating from Roman times.
View Project Report - 82200007
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Romania's ruling Social Democratic Party approved draft legislation at the end of last month to allow Canadian mining company, Gabriel Resources (Yukon, Canada), to proceed with its Rosia Montana proposal, which has been in the works for 14 years. However, it has been reported that the draft law has been rejected by two of three houses in the Parliament before debate. Instead a Special Joint Committee is to be established to review the draft law, a move that prompted Gabriel to threaten legal action against the government. Recently, the company told media that it is ready to sue the government for up to as much as 3 billion ($4 billion) in damages if it cancels the permit.
"We have a very, very robust case, and we believe we have claims up to $4 billion that we can send to the Romanian state," Gabriel Resources Chief Executive Officer, Jonathan Henry, said. "We will go ahead and do that if the vote is against."
Rosia Montana is a community of sixteen villages located in a district known as the Golden Quadrilateral, in the South Apuseni Mountains of Transylvania. Gabriel's Rosia Montana concession area, which affects four of these villages, has reported resources of 17.1 million ounces of gold and 81.1 million ounces of silver (measured and indicated), including 10.1 million ounces of gold and 47.6 million ounces of silver reserves (proven and probable at grades of 1.46 grams per tonne (g/t) and 6.88 g/t respectively).
Gabriel's project is run by the local Rosia Montana Gold Corporation (RMGC), of which it controls a stake in excess of 80%. The government holds the rest but if the project moves ahead, the government will see its share grow to 25%.
The project has been dogged by numerous protests consisting of thousands of Romanians who object to it as it will use cyanide to extract the precious metals.
The Rosia Montana area has been mined for more than 2,000 years, featuring abandoned waste dumps, tailings ponds and approximately 140-kilometers (km) of historical underground workings, some dating from Roman times.
View Project Report - 82200007
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
