Gabriel Resources Ltd, a Canadian gold-mining company, failed to convince a Romanian appeals court to lift a suspension of a review of its Rosia Montana gold project, sending the company’s shares down 26%.

The Environmental Impact Assessment, needed for approval of construction of the mine, was suspended in 2007. The Bucharest Court of Appeal dismissed Gabriel’s challenge to the suspension on July 1, the Toronto-based company said in a statement.

The company "will analyze the court’s decision, once received, and the reasons which led to it and will decide its further actions," Gabriel said. The company said its Romanian legal advisers claim there is no basis in European Union or Romanian environmental law for the suspension.

Gabriel has been trying to build Romania’s biggest gold mine for nine years over objections from environmental groups.

The Rosia Montana property may hold 10.6Moz of gold and 52.3Moz of silver, Gabriel estimates. Gold for immediate delivery traded at US$930.40/oz and silver for immediate delivery traded at US$13.38/oz at 4:14pm New York time.

Gabriel fell C$0.51 to C$1.44 (US$1.24) in trading on the Toronto Stock Exchange. The shares earlier touched C$1.40, the lowest since December 30.

Alburnus Maior, a Hungarian organisation opposed to the development, and Greenpeace called the environmental review "illegal" on a website, saying Gabriel has changed the scope of the development.
(Bloomberg, July 2)

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