Royal’s Greek project hits snag

The Greek government has pulled the plug on exploration at the Midas gold project on Milos island. The country’s environment ministry rejected the environmental impact study for the project, on the grounds that further exploration would pose an unacceptable risk to the environment.

Denver-based Royal Gold (RGLD-Q) and Aegean International Gold (ANY-V) each hold a 25% interest in the project, with the Greek company Silver & Baryte Ores Mining holding the remainder. Royal says it will attempt to have the decision reversed.

To date, the partners have drilled 197 reverse-circulation holes and outlined nearly 1 million oz. gold within 22.2 million tons grading 0.042 oz. per ton. They had hoped to drill an additional 70 holes and thereby upgrade the resource and expand known mineralization.

Royal Gold Chairman Stanley Dempsey believes local political pressure to promote tourism is behind the decision.