Denver, CO – On strong continued bullion prices and a bullish market sentiment the annual Denver Gold Forum opened with strong attendance approaching several hundred industry and financial executives.
The first morning sees concurrent sessions, one covering silver producers and explorers with the other with a strong junior contingent of up-and-coming gold miners, some of which are facing political challenges and hurdles.
Gabriel Resources‘ (GBU-T) CFO, Richard Young, touched on the company’s permitting headaches and disappointments at the Rosia Montana gold project in western Romania. Touching on opposition portrayal of the region surrounding the planned operation as quaint and pristine, Gabriel illustrated the areas extreme poverty, rundown infrastructure and rampant unemployment.
The company highlighted the US$2.5 billion in economic benefit Rosia Montana would bring to Romania in addition to the thousands of direct and indirect jobs in the region classified by the government as a “Disadvantaged Zone”. Gabriel’s planned development will also remediate the past environmental damage from historic mining.
Young touched on what is described as a Hungarian opposition agenda to the project directly influencing Romanias Minister of Environment. Gabriel feels the illegal stoppage of the project permitting by the Minister is a manoeuvre to get Gabriel to sue him. While not tipping its hand on how it will proceed, the company is pursuing a couple of avenues, political and legal.
Dundee Precious Metals‘ (DPM-T) Jonathan Goodman then reviewed permitting challenges it is facing, in Bulgaria, while it awaits approval by the countrys environment ministry. Goodman touched on the frustrations of the delay and taking the minister to court for disobeying the countrys rule of law.
Francis McAllister, chairman and CEO of Stillwater Mining (SWC-N) painted a bullish outlook for platinum group metals, particularly palladium, driven by its use in vehicle emission control systems and Jewellery demand. Growth in the number of diesel vehicles is seen as a boon, with its increased usage of palladium, while Chinese demand for palladium jewellery continues to look strong.
The company forecasts 2007 platinum group metal output (predominantly palladium) of about 570,000 oz. from its Stillwater and East Boulder mines in Montana, down from earlier projections of roughly 630,000 oz.
Aurelian Resources (ARU-T) president and CEO Patrick Anderson updated the companys successes at its FDN gold discovery in southeastern Ecuador. He also pointed out that although perceived political risks has kept its market somewhat grounded, revisions to Ecuadorian mineral policy is in the works and anticipated by mid-2008.
The company sees government officials pushing for increased mineral development with strong environmental and social safeguards ensured. Mineral policies from Chile and Peru are being referenced as a model to its mining framework.
With 52,000 metres of drilling done on FDN, Aurelian expects an inferred resource estimate by this Fall along with some data on metallurgy. Of the six drill rigs turning onsite, five are on FDN while one is allocated to regional exploration.
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