Greek scholars give Stratoni the thumbs up

A decision as to whether or not mining can resume at TVX Gold‘s (TVX-T) on-again-off-again Stratoni (Marves Petres) zinc-lead-silver operation in northern Greece, has been delayed by a week.

The Greek government says it will postpone its decision on a mining permit for the operation in order allow an information meeting with local leaders, representatives of the employees, and local citizens.

A committee of six independent professors from the National Technical University of Athens (NTUA), appointed to review TVX’s proposed mining method at Stratoni, told the Greek government that the method is both safe and appropriate considering the nature of the orebody.

TVX’s CEO Sean Harvey said in a prepared statement, “We met with the Deputy Minister of Development yesterday and, while we are disappointed that our permit will not be available this Friday, the meeting with the Minister was both worthwhile and fruitful. TVX fully concurs with the Government’s position that, before a final decision is made, further discussions should take place to inform interested parties of the safety of the proposed mining method. We would much prefer to have a permit that is fully supported by all stakeholders and we are confident that the Government will meet its commitment to provide a decision by Feb. 15, 2002.”

A visit to the area by the Deputy Minister, other officials and the NTUA committee has been scheduled for Feb. 12, 2002.

In September, TVX applied for permission to extend Stratoni’s mining operations underneath the nearby village of Stratoniki. The company has struggled with local officials over permitting issues since 1995, when it acquired the Hellenic gold complex, which includes the Madem Lakkos and Marves Petres zinc-lead-silver mines and the nearby Stratoni mill.

Late last year, Mining resumed at Stratoni after a suspension order placed by the local mining inspector’s office was lifted. An inspector had ordered the company to move back 100 metres from an existing boundary. Following the order, TVX declared force majeure on concentrate deliveries from Stratoni.

During the first nine months of 2001, the latest figures available, Stratoni provided TVX with 1.5 million oz. silver, plus 19,600 tonnes lead and 21,300 tonnes zinc. Of that, 505,000 oz. silver, 6,400 tonnes lead and 7,200 tonnes zinc were produced from 92,000 tonnes of ore in the third quarter. Stratoni milled 262,200 tonnes of ore, or 84% more than in the corresponding period of 2000. The improvement reflects the implementation of a 6-day mining schedule, continuous milling and the adoption of mechanized mining methods.