Gabriel Resources Ltd.
Company Data | Introduction
| Projects | Management | News
Update | Chinese
|| 110 Yonge Street, Suite 1501
Toronto, Ontario M5C 1T4
|| (416) 955-9200
|| (416) 955-4661
| Public Float:
|52 Week High:
|52 Week Low:
Gabriel Resources Ltd. is a mineral exploration and development company based in Canada. Over the past four years, Gabriel has systematically advanced its principal mineral resource property, the Rosia Montana project, from an advanced stage exploration project to a major, world-class gold and silver deposit. Gabriel has completed three studies on the Rosia Montana project, the most recent being an optimization study produced by SNC Lavalin Engineers of Toronto in February of this year. The Optimization study was based on a plant throughput of 13Mtpa with minable reserves of 10.4 Million ounces of gold expected to produce 504,000 oz of gold per year at a cash cost of US$107/oz over a 16.2 year mine life. The studies show that the value of the project at a conservative gold price of US$300/oz is US$604 Million (at a 5% discounted rate).
Through joint ventures with Romanian state mining company Minvest S.A., Gabriel has assembled a portfolio of world class gold-silver and copper-gold projects in two mineral licenses within the historically productive "Golden Quadrilateral" in west-central Romania.
Gabriel is operator and the controlling shareholder in the joint ventures with Minvest S.A., having a 80% interest in Rosia Montana Gold Corporation S.A.
The most advanced project, Rosia Montana, has a resource of 13 million ounces of gold and 49 million ounces of silver and has proceeded to Final Feasibility Stage.
Other advanced exploration projects include Corabia, Bucium Tarnita, Frasin and Bucium Rodu.
Gabriel also recently announced an Option agreement with Minvest S.A. on the Rosia Poeini copper-gold porphyry deposit.
Gabriel is well financed, and run by an experienced management team.
PROJECTS IN HAND
(1) Rosia Montana
Rosia Montana is located in the historic Golden Quadrilateral area of western Romania. This famous mining district has been Europe's most important gold producing area for over 2000 years. Evidence of mining at Rosia Montana predates Roman times. Following a 200 year period of mining by the Roman Empire, sporadic mining was undertaken in Medieval times, with more active mining occurring during the period of the Austro Hungarian empire from the end of the 17th century until the early 1900's. The Romanian Government has mined Rosia Montana continuously for over 60 years and Gabriel's joint venture partner, Minvest S.A., currently maintains small-scale open-pit operations at Rosia Montana.
The Rosia Montana gold deposits are located 85 km northeast (by paved road) of the major regional centre of Deva, via the towns of Brad and Abrud. The village of Rosia Montana and the nearby town of Abrud are the two main centres housing staff and associated infrastructure for the Rosia Montana project.
The Rosia Montana deposits are epithermal, low-sulphur systems with relatively simple metallurgy. The mineralisation does not contain deleterious antimony, arsenic or tellurium. Gold occurs as electrum, associated with sulphides (predominantly pyrite) and in the native form. Spatially associated with the dacitic intrusives are subvertical breccia pipes interpreted to be diatremes. Surrounding the dacitic intrusives is a unit of volcaniclastic sediments (previously referred to as a microconglomerate), this unit also hosts mineralisation. Situated between the Cetate and Cirnic intrusives and extended along the southern boundary of the Cetate intrusive is a breccia body termed the black breccia.
The bulk of the known reserves are localised within two adjacent dacitic subvolcanic intrusives, Cetate (in the west) and Cirnic (in the east). These intrusives appear to join at depth. Two main types of gold-silver mineralisation are present with the deposits - disseminated (within dacite) and breccia. Within the Cetate and Cirnic intrusives the highest grade mineralisation is confined to subvertical breccia pipes - two (Cetate and Carpeni) within the Cetate intrusive, and four (Napoleon, Corhuri, Cantaliste and Piatra Corbuli) within the Cirnic intrusive.
Gabriel Resources Ltd. completed the work program in Rosia Montana included:
· Optimized plant capacity study completed
· Definitive feasibility study completed
· Data acquisition, scanning and digitising
· Pre-feasibility study completed
· 65,760m RC and diamond drill program
· 59,625 metres of underground geological mapping and channel sampling
· Surface geological mapping and 7,800m of channel sampling
· 1,000 bulk density measurements
· Preliminary geotechnical study
· Bulk sampling and metallurgical testing
· 3D geological modelling
· Resource estimates
The Bucium project is located immediately to the south of Rosia Montana. It is an exploration and development project that has been managed to date by Minexfor SA, which prior to being privatised was the Romanian state exploration company.
The Bucium area contains a sequence of Cretaceous sediments, predominantly fine to medium grained, into which Neogene and Quaternary volcanic rocks have been intruded and extruded. The volcanic rocks consist mostly of dacite, quartz andesite, andesite and basalt but pyroclastics, contact breccias and explosive breccias have been mapped. Associated with these lithologies are Miocene volcano-sedimentary rocks including mixed lithology breccias.
Two main styles of mineralisation have been identified to date at Bucium: epithermal to mesothermal gold-silver mineralisation and mesothermal copper (+ gold/silver) mineralisation. The predominant style for gold-silver mineralisation at Bucium is a series of sub-parallel quartz sulphide veins separated by strong to intensely altered wall rock. Typical examples include Corabia and Bucium Rodu, two of the four mineralised zones identified in the Bucium complex.
Porphyry copper mineralisation has been identified at Bucium Tarnita, another mineralised zone, where drilling of a subvertical andesitic plug has returned broad zones of copper (+ gold/silver) minearlisation. The microfractured andesite contains partings, fractures and veinlets of chalcopyrite associated with intense hydrothermal alteration.
Gabriel Resources Ltd. completed the work program in Bucium included:
· Data acquisition, scanning and digitising
· Environmental baseline and impact assessment study
· Underground geological mapping and channel sampling (Tarnita porphyry)
Gabriel Resources Ltd. has a well management team with experience in different areas.
Oyvind Hushovd, Non Executive Chairman
Mr. Hushovd is the Non Executive Chairman of Gabriel Resources Ltd. Mr. Hushovd was the President and Chief Executive Officer of Falconbridge Limited from 1996 to 2002 and held several executive positions with that company and its affiliates from 1974 to 1996 including Executive Vice President and Chief Financial Officer. Mr. Hushovd has a Master of Finance and Administration degree from the Norwegian School of Business and a Master of Law degree from the University of Oslo.
Alan R. Hill, President & CEO, Director
Mr. Hill has had a lengthy and varied career in the mining business, most notably as the Executive Vice President, Development of Barrick Gold Corporation before retiring from that position in September, 2003. Mr. Hill managed the development of Barrick's four latest projects: Alto Chicama, Pascua, Valedero and Cowal. In addition, Mr. Hill managed the development of Barrick's Goldstrike, Pierina and Bulyanhulu projects, with both Bulyanhulu and Pierina being brought into production on schedule and under budget. Before joining Gabriel as its President on May 10, 2005 he was an independent mining consultant. Mr. Hill received his B.Sc. in Mining Engineering as well as postgraduate degree in rock mechanics from the University of Leeds.
Raphael Girard, Director
Mr. Girard is a public policy and international business consultant who retired from the Department of Foreign Affairs in August 2003. Prior to his retirement, Mr. Girard was the Canadian Ambassador to Romania, a post he assumed in June, 2000. As Ambassador, Mr. Girard was responsible for the development and conduct of political and economic relations in Romania as well as in Bulgaria, Macedonia and Moldova where he held concurrent accreditation. Before becoming ambassador to Romania, Mr. Girard held a number of senior posts in the Canadian Foreign Service including Ambassador to the Federal Republic of Yugoslavia from 1997 to March, 1999. Mr. Girard received his Bachelor of Arts degree from the University of British Columbia in 1963.
James McClements, Director
Mr. McClements has been the Managing Director of Resource Capital Fund L.P. since 1998. He has had over twenty years experience in resource finance and investing in mining companies worldwide. Mr. McClements is Chairman of the Corporate Governance Committee and a member of the Compensation Committee.
Paul Morgan, Director
Mr. Morgan is the President and Chief Executive Officer of Goldbelt Resources Ltd. He received a Bachelor of Science degree in Geology and Chemistry from the University of Queensland and has held a number of senior management positions in the mining industry. Mr. Morgan is the Chairman of the Compensation Committee, a member of the Audit Committee and the Technical Committee.
Mike Parrett, Director
Mr. Parrett is an independent mining consultant. Mr. Parrett held various senior management positions with Rio Algom Ltd. from 1991 to December, 2001, including Chief Financial Officer, Vice President, Strategic Development and Joint Ventures and, during 2001, President. Mr. Parrett is a Chartered Accountant and received a Bachelor of Arts degree (Economics) from York University (Toronto). He is the Chairman of the Audit Committee and a member of the Corporate Governance Committee.
Murray Sinclair Jr., Director
Mr. Sinclair is the President and a director of Quest Investment Corporation, a publicly traded merchant banking company which specialized in mezzanine lending to public companies in the oil and gas sector and active equity investments. He received his Bachelor of Commerce degree from Queen's University. Mr. Sinclair is a member of the Audit Committee and the Compensation Committee.
Mike Young, Director
Mike Young is an independent mining consultant. Throughout his business career starting in 1961 Mr. Young has held several management positions with mining companies throughout the world, the most recent being as Vice President of Business Development for Falconbridge Limited. He is the Chairman of the Technical Committee and a member of the Corporate Governance Committee.
Richard Young, Vice President & CFO
Mr. Young brings extensive financial, mine development and capital markets experience to Gabriel. In his 13-year career at Barrick Gold Corporation, Mr. Young held a number of progressively senior positions in the finance group as well as being involved in mine development activities primarily with the Goldstrike and Pierina projects. Most recently he was the Vice President of Investor Relations for Barrick where he was responsible for the development and execution of its investor relations strategy. In addition to his duties as CFO, Mr. Young will also oversee investor relations at Gabriel. Mr. Young received his Bachelor of Arts in economics from University of Western Ontario in 1987, a graduate diploma in Public Accountancy from McGill University in 1989 and his Chartered Accountants designation in 1990.
Gary V. O'Connor, Vice President, Exploration
As Vice President, Exploration, Mr. O'Connor manages all of the Corporation's exploration programs including budgeting, planning and project supervision. Mr. O'Connor joined Gabriel in 2000 after more than 10 years with Freeport McMoRan Copper and Gold in Indonesia where he was the District Manager, Exploration and director of the company responsible for Freeport's Indonesian exploration activities. Mr. O'Connor received his Bachelor of Science degree in Geology and Geophysics from the University of Auckland in New Zealand.
Frank Wheatley, Vice President, General Counsel
Mr. Wheatley is responsible for all of Gabriel's legal matters including regulatory compliance, public financings and corporate governance issues. In addition, he oversees all Romanian legal matters with the assistance of local counsel. As Secretary to the Board of Directors of Gabriel he participates in all board and committee meetings. Before joining Gabriel in 1998 Mr. Wheatley was the Vice President, Legal Affairs of Eldorado Gold Corporation prior to which he was in private practice with the law firm of Smith Lyons in Vancouver. Mr. Wheatley received his Bachelor of Commerce and his Bachelor of Laws degrees from the University of British Columbia.
On September 08, 2005, at the request of Market Regulation Services Inc., Gabriel Resources Ltd. advised that it is aware of a media report indicating that a Gabriel spokesman was confirming that Gabriel was in discussions with Newmont Mining Corporation ("Newmont") regarding the Rosia Montana project.
This media article is incorrect and Gabriel confirms that it is not engaged in any form of discussions with Newmont.
On July 05, 2005, Gabriel Resources Ltd. provided an update with respect to the development of its 80% owned Rosia Montana project located in Western Romania.
- Restructuring of project development activities
- Establishment of corporate office in Bucharest to facilitate Permitting, Development and Operations
- Alignment of Gabriel and Rosia Montana Gold Corporation S.A.'s activities
- Archaeological Discharge Certificate appeal filed
- Concentration of development activities on completion of EIA
Restructuring of Project Development Activities
On February 24, 2005, Gabriel Resources Ltd. reported the latest resources update from Gabriel's 80% owned Rodu Frasin project, located 5 km from Rosia Montana.
- Updated resource estimate increases the indicated gold resource at Frasin by 20% to 491,000 contained ounces of gold and the grade by 27% to 1.91 g/t gold
- Updated resource estimate increases the inferred gold resources at Frasin by 82% to 508,000 contained ounces of gold and the grade by 6% to 1.70 g/t gold
- Updated resource estimate increases the inferred gold resources at Rodu by 52% to 813,000 contained ounces of gold
- 2004 drilling program has outlined a high grade breccia at Frasin and mineralization at both Rodu and Frasin remains open
- Preliminary assessment study underway by Roscoe-Postle and Associates Inc. of Toronto, Canada.
On December 14, 2004, Gabriel Resources Ltd. announced that the environmental permitting process for the development of a new mine at Gabriel's 80% owned Rosia Montana project has been formally initiated by submitting the Project Presentation Report ("PPR") to the Romanian regulatory authorities. The PPR is a summary of the proposed development and will be used by the Romanian authorities to determine whether or not an environmental impact assessment has to be prepared.
On August 30, 2004, Gabriel Resources Ltd. announced that it has entered into a subscription agreement with Newmont Mining Corporation of Canada Limited ("NMCCL"), a subsidiary of Newmont Mining Corporation ("Newmont"), pursuant to which NMCCL will purchase, on a private placement basis, 15,000,000 units of Gabriel at a price of CDN$1.65 per Unit, for aggregate gross proceeds to Gabriel of CDN$24,750,000. The private placement is expected to close on or about September 13, 2004 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and Toronto Stock Exchange approvals. Newmont is the world's largest gold producer with operations and assets on five continents.
On August 13, 2004, Gabriel Resources Ltd. provided its second quarter update.
· Rosia Montana development activities focused on critical path items
· Current phase of detailed engineering for Rosia Montana completed; process flowsheet modified and estimated gold recoveries reduced to approximately 80% and estimated silver recoveries increased to approximately 64.5%
· Application for urbanism certificate submitted
· Rosia Montana exploitation license amended
· CDN$6.5 million short term bridge financing debt facility arranged
On May 20, 2004, Gabriel Resources Ltd. provided an update on its 80% owned Bucium project situated in Western Romania.
Rosia Montana Gold Corporation S.A.'s ("RMGC") application to the Romanian National Agency for Mineral Resources (the "NAMR") to exercise its right to extend the exploration license for the Bucium project for an additional three years has been approved. As a result, the term of the Bucium exploration license has been extended to May 19, 2007 and RMGC has committed to expend a total of approximately US$3.3 million on exploration and development activities during the next three years.
The Bucium exploration license covers a total area of approximately 32 sq.km and is contiguous to Gabriel's 80% owned Rosia Montana project.
2004 Exploration Program
Following a successful exploration program in 2003, which resulted in the delineation of a gold resource at Rodu and Frasin (see Gabriel's press release dated February 9, 2004), the 2004 exploration program will consist of up to 15,000 metres of reverse circulation and diamond drilling designed to test the open extensions of the Frasin and Rodu low sulphidation epithermal gold deposits.
The Rodu and Frasin deposits remain open in most directions and contain a number of breccias that have not been drill defined to date. The drilling program has been designed to define the overall extent of the mineralization as well as to provide drill definition of the resources.
On May 12, 2004, Gabriel Resources Ltd. provided its first quarter update with respect to the development of its 80% owned Rosia Montana and Bucium projects located in Western Romania.
Commencement of construction of the new mine at Rosia Montana is not anticipated prior to the second quarter of 2006.
Piatra Alba Resettlement Site access road under construction.
Alba Iulia Resettlement Site construction planning substantially complete.
On February 09, 2004, Gabriel Resources Ltd. provided an update on its exploration activities on Gabriel's 80% owned Bucium project in Romania.
Initial phase of exploration drilling
Preliminary resource estimate indicates an indicated resource of 408,000 oz Au and 1,866,000 oz Ag at the Frasin deposit
Preliminary resource estimate indicates an inferred resource of 814,000 oz Au and 1,502,000 oz Ag at the Frasin and Rodu deposits
Mineralization at Rodu and Frasin deposits remains open
Additional exploration drilling planned for 2004
On December 02, 2003, Gabriel Resources Ltd. announced that the construction of its gold mine in Romania was now scheduled to start during the second quarter of 2005, a delay of six months on the previous schedule due to ongoing problems with granting of an environmental permit.
On December 01, 2003, Gabriel Resources Ltd. provided its third quarter update with respect to its 80% owned Rosia Montana project. Highlights:
- Updated resources estimate at Rosia Montana adds 1.5 million ounces of gold
- Rosia Montana EIA scheduled for submission in first quarter of 2004
- Rosia Montana construction start date scheduled for the second quarter of 2005
- Encouraging drill results at Bucium with resource estimate scheduled for early 2004