Gabriel Resources Budgets Investments Worth EUR27M For Rosia Montana Proj In ‘10

After the conclusion of the environment evaluation, Gabriel Resources estimates additional spending reaching RON66.1 million for the purchase of new plots or the acceleration of activity to obtain the permits and agreements needed for construction approvals, according to the company's financial report.

These expenses will be added with EUR4.26 million in costs.

"The recent change in Government has resulted in a more active dialogue with senior members of the Government and key officials, and a greater interest in the full range of benefits that will flow to Romania as a result of the Rosia Montana Project," said Keith Hulley, C.E.O.

The final great obstacle in the unfolding of the Rosia Montanat Project is the approval of the environment impact study. The investment has generated countless controversy, most of which targets the impact of mining on the environment and the conservation of the archeological sites in the Apuseni Mountains in western Romania.

The Canadian company posted in 2009 a loss of EUR18.9million, over six times higher than the EUR2.8 million loss seen in 2008.

Company expenses grew by 60% in 2009, to EUR15.64 million, from EUR9.8 million in 2008.

In the fourth quarter, Gabriel Resources posted a loss of EUR7.63 million, more than double the EUR2.8 million loss seen in the same interval of 2008.

The company holds 80.46% of the share capital of Rosia Montana Gold Corporation (RMGC), while the Romanian state holds a 19.31% stake, through the Minvest Deva company, and the remaining 0.23% of shares are held by other parties.

RMGC is developing the mining project at Rosia Montana, in the western Romanian Apuseni Mountains, with projected costs reaching more than $1 billion, through which the company expects to extract 626,000 ounces of gold per year for five years since the launch of the mine. An ounce of gold weighs 28.3 grams.

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