UPDATE 1-Colombia still studying Greystar environment impact

Tue Jun 1, 2010 3:10pm EDT

Related Topics

 * Ministry emphasizes project not yet approved
 * Greystar won appeal against order to submit new study
 * Govt and gold miner disagree over leaching zones
 (Adds detail, ministry quote)
 BOGOTA, June 1 (Reuters) - Colombia will take some time to
decide on an environmental impact study for a gold project
operated by Greystar Resources near a delicate Andean
ecosystem, the government said on Tuesday.
 "The ministry continues to analyze the information granted
in the Environmental Impact study," the environment ministry
said in a statement.
 Greystar shares GSL.TO jumped 45 percent on Monday after
news that it will not have to redesign the Angostura gold
project to conform to new mining regulations in the country,
saying Colombia had accepted its appeal against a demand to
resubmit an environmental study on the project.
 Greystar's shares on Tuesday were marginally changed,
slightly weaker by 5 percent.
 The Andean nation ordered the miner in April to resubmit
the study following the approval of a new law forbidding mining
in a certain ecosystem -- a decision Greystar successfully
argued was retroactive implementation.
 Greystar said on Monday that work on the project -- with
construction of a mine expected to begin early next year -- was
not affected by the appeal process.
 The environment ministry has previously said it warned
Greystar that part of Angostura's leaching zones were located
on so-called paramo ecosystems even before the new mining code
was approved. [ID:nN18158721]
 Paramo ecosystems occur in the Andes between upper forest
limits and the lower edges of snow line, but in Colombia,
paramo ecosystems vary depending on the mountain range.
 Angostura has 10.2 million troy ounces of measured and
indicated gold reserves and 3.4 million of inferred resources
with 74 million ounces of silver reserves and resources,
according to preliminary feasibility studies.
 The company plans to complete a definitive feasibility
study in October.
 (Reporting by Diana Delgado; Editing by Sofina Mirza-Reid)


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