Greystar Resources Files Appeal to Reinstate Environmental Impact Assessment at Angostura Project, Colombia
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/29/10 -- Greystar Resources Ltd. (the 'Company') (TSX: GSL)(AIM: GSL) announced that further to its news release dated April 26, 2010, the Company has filed an appeal with the Ministry of the Environment, Housing and Territorial Development (MAVDT) to reinstate its Dec. 22, 2009 Environmental Impact Assessment (EIA) in respect of the development of an open pit gold-silver mine at the Company's Angostura project in Colombia and accept that the Company has complied with all legal requirements to have the project proceed.
Among other strong legal considerations, the appeal challenges the retroactive application of the Feb. 9, 2010, modification to the mining law (Law 1382 of 2010). The appeal is wide ranging with a primary focus on legal and technical arguments. Greystar believes it has designed the Angostura project optimally to minimize the project's impact on the environment and water sources. The appeal seeks to have the EIA reviewed as filed on Dec 22, 2009. The basis for which are comprehensive studies made in accordance with the environmental requirements and the detailed management plans of impacts provided in the EIA which demonstrate the feasibility of the project. Under the regulatory appeals process MADVT must respond to the appeal within fifteen (15) working days.
Steve Kesler, President and CEO, commented, 'We are confident that the Colombian Government will consider the appeal from a broad perspective. We believe that the Colombian Government wishes to encourage investment in mining that is balanced with environmental protection. Colombia has the right to enact new legislation; however, it must ensure that existing investors are not damaged by retroactive application of such legislation. Transparent and predictable laws are necessary to encourage foreign investment in Colombia. We will continue to work with the MAVDT to resolve issues of concern and ensure that the impact of the Angostura project on Paramo is minimized whilst ensuring the financial viability of the Angostura project.'
About Greystar Resources Ltd.
Greystar has worked diligently and to the highest environmental standards for more than 15 years to develop the Angostura project. The International Finance Corporation (IFC) is the Company's largest shareholder. To date, the Company has spent approximately CDN $135 million and the Company currently employs 350 people.
A Preliminary Feasibility Study (PFS) was completed describing all the areas of mining activity as well as the efforts made to minimize environmental impacts particularly in the Paramos. The PFS envisions a project with US$1 billion in capital expenditures and US$3 billion in operating expenditures over the life of the project. The project will employ 1,500 people during construction and 850 people during its 15 year mine life.
Greystar is in the midst of completing a Definitive Feasibility Study (DFS) on the Angostura project that is expected to be published in the second half of 2010. In addition the Company has begun the process of securing US$650 million in project finance from international sources.
Greystar is committed to developing the Angostura project using best industry practices in social and environmental stewardship. Through its association with the IFC, the Company has brought objective guidance to this commitment. Greystar will continue to work with the Colombian Government to demonstrate that the Angostura project can deliver exceptional economic returns for all Colombians while allowing the Paramos ecosystem to flourish.
Forward-Looking Statements
Certain statements in this news release are 'forward-looking' within the meaning of Canadian securities legislation. They include statements regarding estimates of capital and operating expenditures for the Angostura Project and the estimated completion date for a definitive feasibility study. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and other contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in the forward-looking statements. These factors include, among others, conclusions or realization of mineral resources, the actual results of exploration activities, possible variations in ore grade or recovery rates, fluctuations in the price of gold and silver, risks relating to additional funding requirements, political and foreign risks, production and operating risks, environmental regulation and liability, government regulation as well as other risk factors set out under the heading 'Risk Factors' in the Company's Annual Information Form dated March 26, 2010 which is available on SEDAR at www.sedar.com. Investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.
Neither the Toronto Stock Exchange nor the AIM Market of the London Stock Exchange has reviewed and neither accepts responsibility for the adequacy or accuracy of this news release.
Contacts:
Greystar Resources Ltd.
Geoff Chater
Vice President
(604) 614-7830info@greystarresources.comwww.greystarresources.com
Renmark Financial Communications Inc.
John Boidman
(514) 939-3989 or (416) 644-2020jboidman@renmarkfinancial.com
Renmark Financial Communications Inc.
Dan Symons
(514) 939-3989 or (416) 644-2020dsymons@renmarkfinancial.comwww.renmarkfinancial.com
NCB Stockbrokers Limited
Christopher Caldwell
London NOMAD Contact
44 (0) 20 7071 5200christopher.caldwell@ncb.ie