Permitting for the Rosia Montana gold and silver mining project in Romania remains the core focus for Canadian mining company Gabriel Resources, according to the company. The capital cost to complete the development of the project, including interest, financing and corporate costs, is currently estimated at approximately USD 1 billion.

“We continue to make good progress on the permitting of the Rosia Montana gold and silver mining project”, said Jonathan Henry, president and chief executive officer for Gabriel Resources.

Gabriel Resources is maintaining its commitment to the project and its cultural heritage through its ongoing restoration of the historical town centre of Rosia Montana, and its undertaking to provide co-operation and future funding at a regional and national level to protect and restore Romanian cultural heritage, according to the company, who has recently issued a financial report. The gold and silver mining project in Rosia MOntana has been opposed for years by NGOs who said such a project would destroy the area.

In July, 2011, Gabriel Resources increased its ownership interest in the project to 80.69 percent through the acquisition of a minority shareholding for a net cash consideration of USD 1.15 million. Minvest S.A., a Romanian state-owned mining company, holds the remaining 19.31 percent interest.

The Canadian company Gabriel Resources reported a net loss of USD 3.5 million in the second quarter of 2011, compared with a net loss of USD 11.4 million recorded in the same period last year, according to the company.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: Sxc.hu)