what gives? i'll tell you what gives...i'll try to make this short - but please press on with this as it's
relevant to our investment in this pivotal gold asset:
the wall street journal published a one sided story today (i.m.o.)
friday 11 oct. 2002. it concerns ongoing discussions between
gbu and the ifc that ceased this week. so before anybody goes
off on a rant about a bust up between these two, let me tell you
what i know. the ifc and the ngo's are very often times great
partners to have going into developing countries. but as you
will see from gbu's press release out late today and posted
below, it simply seems that these two just didn't need each other
on this occasion and that the involvement itself of the ifc might
well have been detrimental to the timely development of rosia m.
any connotation suggesting rosia m. won't get developed is
rather foolish. so if you think this mine is history because the
ifc's out, you've got another thing coming. my info is that the
funding is there ready to place and that the permitting is there
ready to place and that these two simply didn't dance the same
dance. ces la vie. gbu proceeded in a certain direction for a
while at the behest of the ifc and it simply seems not to have
been the most practicable way to progress. so if you are a frail
investor or have environmental concerns, just think this through:
gbu says below:
"notwithstanding the departure of the ifc, gabrielÕs corporate
policy regarding social and environmental matters associated
with the development of the project has been, and will continue
to be, to comply with all world bank group guidelines and
policies, european union directives and romanian laws and
regulations." they continue "to assist gabriel in meeting those
guidelines and policies, gabriel has engaged, after extensive
discussion and consultation with the ifc, a number of
internationally recognised experts in environmental matters
relating to the development of mining projects, including esg and
montgomery, watson and harza of denver and bucharest." for
you and me, this means that the engineering, safety and
environmental standards gbu proposed going into the
environmental permitting process stage have always been
tailored to produce a project which at the bare minimum, would
achieve standards beneficially "far below current world bank
group guidelines and policies, european union directives and
romanian laws and regulations for mining projects and would
make the project one of the most environmentally friendly mines
in europe."
there is no fudge here. if you are convinced otherwise by
anyone, go buy nortel.
gbu also announced today that they will publish the results of
new reserve estimates that will incorporate last year's 23,000m
infill drill program. that's sure going to be juicy. just you see.
they have this ore body well drafted believe me.
other key points were that gbu's "expectation, based upon
discussions with other sources of equity and debt financing, is
that sufficient capacity exists in the commercial equity and debt
financing markets for them to press on with the timely
development of the project." excellent. no ifc/ngo delays.
...and lastly, the basic engineering phase, being done by snc
lavalin of toronto, is currently scheduled to be completed before
the end of 2002. for you and me, this means that tenders for the
epc/epcm contract for the detailed engineering and construction
phases of the project will follow shortly thereafter.
...we're back on track babies. hang in there.
topdop
PRESS RELEASE
TSX Trading Symbol: GBU For Immediate Release
ROSIA MONTANA PROJECT - PROJECT UPDATE
Toronto, Ontario, October 11, 2002 Ð Gabriel Resources Ltd.
(ÒGabrielÓ) is pleased to provide the following update on the
development of GabrielÕs 80% owned Rosia Montana gold
project in Romania (the ÒProjectÓ):
Highlights
¥ International Finance Corporation (the ÒIFCÓ) ceases its
involvement in the Project
¥ Resettlement and relocation program successfully underway
¥ Next key step in permitting process includes Environmental
and Social Impact Analysis and application for construction
authorization
¥ Key industrial development area approvals granted by Rosia
Montana and Abrud Counties to permit the large scale
development of a new mine at Rosia Montana
¥ Updated reserve estimate incorporating recent infill drill
program due by end of November 2002
¥ Basic engineering phase of development scheduled to be
completed during December
GabrielÕs Relationship with the IFC
Gabriel has been working closely with the IFC on the social and
environmental aspects of the Project for the past several
months, and has greatly benefited from and incorporated into its
work programs, the IFCÕs input and advice on the Environmental
and Social Impact Assessment (the ÒESIAÓ) and the resettlement
action plan (the ÒRAPÓ). After several months of discussion
regarding the commercial terms of the IFCÕs participation in the
Project, the IFC has elected to cease its involvement in the
Project due to concerns about its involvement leading to delays
in the Project development timetable and GabrielÕs expectation,
based upon discussions with other sources of equity and debt
financing, that sufficient capacity exists in the commercial equity
and debt financing markets to continue the timely development
of the Project. Notwithstanding the departure of the IFC,
GabrielÕs corporate policy regarding social and environmental
matters associated with the development of the Project has
been, and will continue to be, to comply with all World Bank
Group guidelines and policies, European Union directives and
Romanian laws and regulations.
Resettlement and Relocation Program
As Gabriel indicated in its press release of October 3, 2002, the
resettlement and relocation program associated with the
development of the Project is well underway under the direction
of ESG International of Tucson and Planning Alliance of Toronto.
GabrielÕs corporate policy regarding the resettlement and
relocation program is to fully comply with all relevant World Bank
Group guidelines and policies and Romanian laws and
regulations. Gabriel has been working with the IFC for the past
several months to upgrade and improve the RAP to bring it into
more detailed compliance with such guidelines and policies.
Environmental Permitting Process
The other key permitting process currently underway is the ESIA
of the Project. Gabriel has submitted the initial Project
Description to the Romanian governmental authorities and
expects to submit the complete ESIA to the same authorities
during the first quarter of 2003. GabrielÕs corporate policy
regarding the environmental aspects of the development of the
Project is to fully comply with all relevant World Bank Group
guidelines and policies, European Union directives and
Romanian laws and regulations. To assist Gabriel in meeting
those guidelines and policies, Gabriel has engaged, after
extensive discussion and consultation with the IFC, a number of
internationally recognized experts in environmental matters
relating to the development of mining projects, including ESG
and Montgomery, Watson and Harza of Denver and Bucharest.
An integral part of the design of the new mine complex and
tailings management facility at the Project is the inclusion of a
state of the art cyanide destruct circuit which will reduce the
levels of cyanide being placed into the tailings management
facility to less than 1 part per million (ÒppmÓ). Discharge levels of
less than 1 ppm of cyanide are far below current World Bank
Group guidelines and policies, European Union directives and
Romanian laws and regulations for mining projects and would
make the Project one of the most environmentally friendly mines
in Europe.
Key Land Use Approvals
Gabriel has now received all necessary local, state and federal
approvals for the detailed industrial development plan prepared
by Gabriel for the development of the Project. This plan consists
of a Zonal Urbanistic Plan and related regulations (the ÒPUZÓ).
The preparation and approval of the PUZ represents a key step
in the permitting process for the development of the Project. The
PUZ provides details for the specific use of the land within the
industrial area on which the new mine will be constructed,
including the location, general arrangement and size of all major
components of the Project such as the open pits, plant and
process facilities, waste dumps, tailings management facility
and all associated infrastructure and access corridors. In April
2001, the Rosia Montana Local Council approved a General
Urbanistic Plan (the ÒGUPÓ) which, among other things, rezoned
for industrial uses land within the Rosia Montana Borough that
will be required by Gabriel for the development of the Project.
The GUP was recently updated by the Rosia Montana and Abrud
Local Councils to incorporate the new community sites as well
as to make slight adjustment to the boundaries of the industrial
zone.
¥ Public Support Remains Strong
During the course of the approval process for the PUZ, public
meetings were held with the local communities in Rosia
Montana and Abrud. At these public meetings, which are an
integral part of the approval process for the PUZ, all parties
affected by the proposed land use regulations were given the
opportunity to participate in the process and ask questions. No
opposition to the proposed mine development was expressed at
the meetings while an overwhelming majority of persons
present expressed support for the proposed development.
¥ Designs For New Community Sites Approved
The general design of the new community sites have been
approved by the local Rosia Montana Council. This approval
represents a significant step in the overall community
development program, as more detailed engineering design,
infrastructure and town planning details for the new community
sites can now be prepared and submitted for approval to the
Rosia Montana Council, thereby facilitating commencement of
construction of the Project in 2003.
¥ Updated Resource and Reserve Estimate
Gabriel is currently completing an update of its resource and
reserve estimate for the Project, incorporating approximately
23,000 metres of infill and grade control drilling completed
during 2002. Gabriel has engaged RSG Global of Perth to
update the reserve estimate, which is expected by the end of
November, and has engaged IMC of Tucson to prepare final
mine plans based upon the updated reserve estimate.
¥ Basic Engineering Phase of Development
The basic engineering phase of development of the Project,
being conducted by SNC Lavalin of Toronto, is currently
scheduled to be completed before the end of 2002. Upon
completion, Gabriel expects to issue an international tender for
an EPC/EPCM contract for the detailed engineering and
construction phases of the Project.
Gabriel is a Canadian based resource company engaged in the
exploration and development of mineral properties in Romania.
On Behalf of the Board:
Signed by "Robin J. Hickson"
ROBIN J. HICKSON
PRESIDENT & CHIEF OPERATING OFFICER