Canadian Gabriel Resources spent USD 61 million on the Rosia Montana gold and silver mining project development activities in 2011, while in the fourth quarter of last year the amount was USD 21 million, according to the company. “The project remains a high profile issue 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,” reads a statement from the company.

The discussions between Gabriel Resources and the Romanian Government have been ongoing on the potential for a revised ownership interest in the Rosia Montana project, royalty rates and the route to successfully granting a permit to the project. “The company is waiting for a response from the Government on its latest proposal and clarification on whether the proposed adoption of an increased royalty rate payable for precious metals production, which has yet to be made law, applies to the project,” according to the company.

The company’s net loss in the fourth quarter of last year was USD 8.4 million, while for the whole of 2011 it was USD 16.7 million. The net loss for the year primarily reflects stock based compensation and corporate costs of USD 18.7 million, of which the fourth quarter accounted for USD 5 million, offset by foreign exchange gains and interest income totaling USD 2.2 million. Read the entire statement of the company here.

Rosia Montana mining project is jointly held by Canadian Gabriel Resources and the Romanian state. The state has a 19.3 percent stake in the project, through state-run company Minvest Deva. This project has met with widespread opposition in Romania. Several non-governmental organizations oppose the project, saying it will destroy the environment in the Apuseni mountains area.

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

(photo source: Gabriel Respources; in picture: Cetate quarry in Rosia Montana)