The Historical Context
Hailing from a historical mining district that dates back to pre-Roman times, Gabriel Resources’ Roșia Montană project shines with the promise of being one of the largest undeveloped gold deposits in Europe.
The project reveals a substantial mineral reserve base where 10.1 million oz. of gold and 47.6 million oz. of silver reside, nestled within 215 million tonnes with average grades of 1.46 g/t gold and 6.88 g/t silver.
The Turmoil and Rejection
The proposed open-pit mine faced a storm of protests in 2013, forcing the Romanian government to set its face against the project by denying its permit. The challenges did not end there for Gabriel Resources, as Roșia Montană received an additional blow when it joined the UNESCO World Heritage list, complicating any attempts at revival.
The Company’s Persistence
Undeterred by the setbacks, Gabriel Resources has been toiling at the Roșia Montană project since 1997. After clinching its license in June 1999, the company channeled the lion’s share of its management and financial resources towards the exploration, feasibility, and subsequent development of the proposed gold mine.
Indeed, the company insists that it fulfilled all its legal obligations and showcased Roşia Montană as a high-quality, sustainable, and environmentally responsible mining project. Yet, Romania still “unlawfully” obstructed the project without offering compensation, thereby triggering the company’s move to initiate international arbitration.
The Bittersweet End
The ICSID arbitration tribunal finally brought the lingering case to a close in September 2023 and by all regulations, it must render its final decision to the involved parties within 120 days, which neatly lands before March 12, 2024.
The saga has taken an unexpected turn with Gabriel Resources closing Friday’s trading session 11.7% higher at C$0.57 per share. The company even soared to a 52-week high of C$0.60 previously, wrapping the day up with a market capitalization of C$590.5 million ($438.6m).