Gabriel Resources Ld - Third Quarter Report
02.11.2011 | Marketwire
TORONTO -- (Marketwire) -- 11/02/11 --
FOR IMMEDIATE RELEASE TSX Trading Symbol: GBU
November 2, 2011
Gabriel Resources Ltd
Third Quarter Report
Gabriel Resources Ltd. ('Gabriel' or the 'Company') announces the
publication of its Third Quarter Report and Management's Discussion and
Analysis for the period ended September 30, 2011.
Highlights
- Permitting for the Rosia Montana gold and silver mining project
('Project') remains the core focus of the business. The following
recent progress has been made:
o Ongoing engagement with the Technical Analysis Committee ('TAC')
through its review of the Environmental Impact Assessment ('EIA'),
responses to public review issues raised through the TAC process
and, in October 2011, the majority of the members of the TAC
undertook a site visit to the Project.
o Award of the archaeological discharge permit for the Carnic open
pit ('ADC') in July 2011.
- Gabriel is maintaining its commitment to the Project and the
region's cultural heritage through its ongoing restoration of the
historical town centre of Rosia Montana and its undertaking to
provide co-operation and funding of up to US$140m at a regional and
national level to protect and restore Romanian cultural heritage.
- The President of Romania, Traian Basescu, visited Rosia Montana
on August 29, 2011 where he stated his belief in the Project and the
exploitation of Romania's gold, copper and silver on the basis of
modern technologies without state subsidies. President Basescu has
since publicly stated his support for the Project and the need for
job creation in Romania, together with the need for a Government
decision as soon as possible in the best interests of Romania.
- Gabriel has entered into discussions with the Romanian Government
regarding ownership of the Project and the route to its successful
permitting.
- $160.3 million of cash and cash equivalents held at September 30,
2011.
Jonathan Henry, Gabriel's President and Chief Executive Officer,
stated:'We remain focused on our partnership with the Romanian Government
to
permit and build Romania's first modern mine. In this pioneering
endeavour, where all decisions are 'firsts', the process is time
consuming and extensive in the detail required and the questions asked
in the assessment of the Rosia Montana project's substantial economic,
social and environmental benefits. We look forward to the coming months
with optimism for all stakeholders.'
Further commentary on operations and results in the third quarter of
2011, together with events anticipated in the short term, is given
below. The Company has filed its Interim Financial Report and
Management Discussion & Analysis on SEDAR at www.sedar.com.
Gabriel is pleased to announce that it has launched a new website,
within which the documents relating to the Third Quarter Report can be
found, at www.gabrielresources.com.
For further information on this press release, please contact:
Jonathan Henry Bobby Morse
President and Chief Executive Officer Buchanan
Tel: 44 207 421 1111 Tel: 44 207 466 5000
Mobile: 44 7798 801783 Mobile: 44 7802 875227
jh@gabrielresources.combobbym@buchanan.uk.com
About Gabriel
Gabriel is a Canadian TSX-listed resource company focused on permitting
and developing its world-class Rosia Montana gold and silver project.
The Project, the largest undeveloped gold deposit in Europe, is owned
through Rosia Montana Gold Corporation ('RMGC'), a Romanian company in
which Gabriel holds an 80.69% stake with the 19.31% balance held by
CNCAF Minvest S.A., a Romanian state-owned mining enterprise. Gabriel
and RMGC are committed to responsible mining and sustainable
development in the communities in which they operate. The Project is
anticipated to bring US$19 billion to Romania as potential direct and
indirect contribution to GDP according to 2010 estimates from UK-based
Oxford Policy Management (using a gold price of US$900/oz). The Project
will generate thousands of employment opportunities. Gabriel intends to
build a state-of-the-art mine using best available techniques and
implementing the highest environmental standards whilst preserving
local and national cultural heritage in Romania. For more information
please visit the Company's website at www.gabrielresources.com.
Further information
Financial Performance
- The third quarter net loss was $3.6 million, or $0.01 per share,
primarily reflecting stock based compensation and corporate costs of
$4.4 million offset by foreign exchange gains and interest income
totaling $0.8 million.
- A total of $18.3 million was spent on Project development
activities during the quarter.
Liquidity and Capital Resources
- Cash and cash equivalents at September 30, 2011 totalled $160.3
million.
- The Company is in the process of updating the March 2009
NI 43-101 technical report to update cost estimates included in
the capital and operating economics for the Project. A revised 43-101
report should be published in the fourth quarter of 2011 or shortly
thereafter.
Political Environment
- Since the visit to Rosia Montana by President Basescu, the
Project has a much higher profile in Romania, with wide coverage in
television debates, on the internet and in print media, as well as
being the subject of comment from leaders of all major political
parties in Romania.
- While some political and NGO opposition continues, a broader
understanding of the employment, economic, cultural development,
environmental and sustainable development initiatives is a key factor
in the increasing support for the Project among Romania's public and
governing authorities.
- During the third quarter, the Company has been, and remains,
involved in an ongoing dialogue with a number of ministries of the
Romanian Government in respect of questions raised on ownership of
the Project, royalty rates for gold and silver and the route to
successful permitting of the Project. These discussions encompass a
wide range of issues relevant to the interests of all stakeholders
in a project to build a world-class and modern mine, including the
priority need for investors to see a stable fiscal regime throughout
the construction and operation phases of the Project, together with
the advantages of the current ownership structure of RMGC as
exclusive licence holder for the Project. Detailed information has
been provided to the Romanian Government on the positive economic,
environmental and social impacts of the Project for Rosia Montana
and Romania as a whole. The Company will provide a further update as
and when appropriate.
Environmental/Permitting
- Since March 2011, the Company has progressed many issues raised
through the TAC process, including the requirement for RMGC to
address in excess of 500 questions raised through the most recent
public review period.
- On August 26, 2011, RMGC submitted to the Ministry of Environment
('MOE') a comprehensive document, addressing all the relevant aspects
of the Project questioned through the most recent public review
period. In September, 2011 the MOE submitted a supplementary request
for information to RMGC which has now been answered in full. The
majority of members of the TAC visited Rosia Montana on October
19/20, 2011 to understand better the site of the Project and its
potential impact on the environment.
- The Company believes all the consultation issues will need to be
resolved to the satisfaction of the MOE before a further TAC meeting
is onvened. However, the Company understands that a further, and
potentially final, TAC meeting is expected to be held in the next
month. The Company is unable to give guidance on the time that it
might take the TAC to release its recommendation following a final
meeting. Ultimately, the EIA must be approved by a Cabinet decision
of he Romanian Government who will, if satisfied, issue an
Environmental Permit ('EP') for the Project. Gabriel
understands that such decision process by the Cabinet could take a
sixty day period from the TAC recommendation.
- While the EP is the most important project approval, and is not
linked to the issuance of other required permits, licences and
certificates, there has been limited recent progress in respect of
other permitting activities. At the end of the third quarter of 2011,
RMGC held 19 out of the total number of 22 endorsements necessary for
the approval of the amended zonal urbanization plan for the
industrial area of the Project and had obtained 10 endorsements out
of the revised total of 13 endorsements necessary for the final
approval of the zonal urbanization plan for the protected area of
the historical centre of Rosia Montana.
Archaeology and Preservation of Cultural Heritage
- The National Archaeology Commission of Romania met on July 12,
2011 and recommended approval of the ADC to the Alba County
Directorate for Culture and National Patrimony. On July 14, 2011,
the Alba County Directorate for Culture and National Patrimony
issued a new ADC to RMGC for the Carnic open pit, which complements
those it already holds for the Cetate and Jig open pits.
- With the ADC for Carnic issued, RMGC has commenced further
detailed archaeological work in the old underground mining galleries
that lie under the historical protected area of Rosia Montana
('Protected Area'). This work has focused on opening up previously
unexplored Roman galleries and the commencement of archaeological
rehabilitation work on underground development adits and old mining
areas that have never been restored for public interest. RMGC is in
the process of restoration work that will allow these areas to be
opened up to the public as part of the long term museum initiatives
funded solely by RMGC in the Protected Area.
- This is just one of a series of elements of a commitment by the
Company of approximately US$140 million that has been or will be
invested over all phases of the Project in local heritage and culture
in and around Rosia Montana, together with funding research,
appraisal and consolidation-restoration works of historical
monuments across Romania included in the National Program for the
Restoration of Historical Monuments. This commitment includes the
establishment of a special commission, to include independent
experts, which will monitor the work undertaken by RMGC.
Employment and Economic Benefits for Romania
- Given the critical importance of sustained economic development
for Romania, the Company continues to draw public and political
attention to the significant employment and economic opportunities
the Project brings, while at the same time aiming to conform to the
highest standards on engineering, environmental, cultural and social
matters.
- The Company's communication efforts are fact-based, focusing on
the critically-needed employment and economic advantages the Project
will bring to Romania as well as the benefits to an area that has
endured significant damage to its cultural heritage and environment
through many years of mining activities and neglect.
- RMGC currently employs approximately 460 people, with approximately
85% hired from the local Rosia Montana community, and the Company
is investing in training and skills assessments for the
construction phase of the Project.
Corporate and Social Responsibility (CSR)
- Gabriel takes pride in its commitment to achieving the highest
levels of sustainability from workplace safety to community and
environmental responsibility. It has a clear goal of attaining
business performance through a dynamic process of continuous
improvement in all aspects of its business and respecting all
stakeholders. The Company invests significant resources into its CSR
programs, which in Romania is a multi-dimensional commitment managed
by RMGC covering employee training and safety, local communities,
living traditions, direct and indirect social impacts, educational
programs, environmental protection, community sponsorship and
heritage aspects.
This information is provided by RNS
The company news service from the London Stock Exchange
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