SOURCE: Gabriel Resources Ltd

November 02, 2011 07:00 ET

Gabriel Resources Ld - Third Quarter Report

TORONTO--(Marketwire - Nov 2, 2011) -


FOR IMMEDIATE RELEASE                            TSX Trading Symbol: GBU


November 2, 2011


                        Gabriel Resources Ltd


Third Quarter Report

Gabriel Resources Ltd. ("Gabriel" or the "Company") announces the
publication of its Third Quarter Report and Management's Discussion and
Analysis for the period ended September 30, 2011.

Highlights

-  Permitting for the Rosia Montana gold and silver mining project
   ("Project") remains the core focus of the business. The following
   recent progress has been made:

   o  Ongoing engagement with the Technical Analysis Committee ("TAC")
      through its review of the Environmental Impact Assessment ("EIA"),
      responses to public review issues raised through the TAC process
      and, in October 2011, the majority of the members of the TAC
      undertook a site visit to the Project.

   o  Award of the archaeological discharge permit for the Carnic open
      pit ("ADC") in July 2011.

-  Gabriel is maintaining its commitment to the Project and the
   region's cultural heritage through its ongoing restoration of the
   historical town centre of Rosia Montana and its undertaking to
   provide co-operation and funding of up to US$140m at a regional and
   national level to protect and restore Romanian cultural heritage.

-  The President of Romania, Traian Basescu, visited Rosia Montana
   on August 29, 2011 where he stated his belief in the Project and the
   exploitation of Romania's gold, copper and silver on the basis of
   modern technologies without state subsidies. President Basescu has
   since publicly stated his support for the Project and the need for
   job creation in Romania, together with the need for a Government
   decision as soon as possible in the best interests of Romania.

-  Gabriel has entered into discussions with the Romanian Government
   regarding ownership of the Project and the route to its successful
   permitting.

-  $160.3 million of cash and cash equivalents held at September 30,
   2011.

Jonathan Henry, Gabriel's President and Chief Executive Officer,
stated:"We remain focused on our partnership with the Romanian Government 
to
permit and build Romania's first modern mine. In this pioneering
endeavour, where all decisions are "firsts", the process is time
consuming and extensive in the detail required and the questions asked
in the assessment of the Rosia Montana project's substantial economic,
social and environmental benefits. We look forward to the coming months
with optimism for all stakeholders."

Further commentary on operations and results in the third quarter of
2011, together with events anticipated in the short term, is given
below. The Company has filed its Interim Financial Report and
Management Discussion & Analysis on SEDAR at  www.sedar.com .

Gabriel is pleased to announce that it has launched a new website,
within which the documents relating to the Third Quarter Report can be
found, at  www.gabrielresources.com .

For further information on this press release, please contact:


Jonathan Henry                            Bobby Morse
President and Chief Executive Officer     Buchanan
Tel: +44 207 421 1111                     Tel: +44 207 466 5000
Mobile: +44 7798 801783                   Mobile: +44 7802 875227
 jh@gabrielresources.com                     bobbym@buchanan.uk.com 
About Gabriel

Gabriel is a Canadian TSX-listed resource company focused on permitting
and developing its world-class Rosia Montana gold and silver project.
The Project, the largest undeveloped gold deposit in Europe, is owned
through Rosia Montana Gold Corporation ("RMGC"), a Romanian company in
which Gabriel holds an 80.69% stake with the 19.31% balance held by
CNCAF Minvest S.A., a Romanian state-owned mining enterprise. Gabriel
and RMGC are committed to responsible mining and sustainable
development in the communities in which they operate. The Project is
anticipated to bring US$19 billion to Romania as potential direct and
indirect contribution to GDP according to 2010 estimates from UK-based
Oxford Policy Management (using a gold price of US$900/oz). The Project
will generate thousands of employment opportunities. Gabriel intends to
build a state-of-the-art mine using best available techniques and
implementing the highest environmental standards whilst preserving
local and national cultural heritage in Romania. For more information
please visit the Company's website at  www.gabrielresources.com .

Further information

Financial Performance

-  The third quarter net loss was $3.6 million, or $0.01 per share,
   primarily reflecting stock based compensation and corporate costs of
   $4.4 million offset by foreign exchange gains and interest income
   totaling $0.8 million.

-  A total of $18.3 million was spent on Project development
   activities during the quarter.

Liquidity and Capital Resources

-  Cash and cash equivalents at September 30, 2011 totalled $160.3
   million.

-  The Company is in the process of updating the March 2009
   NI 43-101 technical report to update cost estimates included in
   the capital and operating economics for the Project. A revised 43-101
   report should be published in the fourth quarter of 2011 or shortly
   thereafter.

Political Environment

-  Since the visit to Rosia Montana by President Basescu, the
   Project has a much higher profile in Romania, with wide coverage in
   television debates, on the internet and in print media, as well as
   being the subject of comment from leaders of all major political
   parties in Romania.

-  While some political and NGO opposition continues, a broader
   understanding of the employment, economic, cultural development,
   environmental and sustainable development initiatives is a key factor
   in the increasing support for the Project among Romania's public and
   governing authorities.

-  During the third quarter, the Company has been, and remains,
   involved in an ongoing dialogue with a number of ministries of the
   Romanian Government in respect of questions raised on ownership of
   the Project, royalty rates for gold and silver and the route to
   successful permitting of the Project. These discussions encompass a
   wide range of issues relevant to the interests of all stakeholders
   in a project to build a world-class and modern mine, including the
   priority need for investors to see a stable fiscal regime throughout
   the construction and operation phases of the Project, together with
   the advantages of the current ownership structure of RMGC as
   exclusive licence holder for the Project. Detailed information has
   been provided to the Romanian Government on the positive economic,
   environmental and social impacts of the Project for Rosia Montana
   and Romania as a whole. The Company will provide a further update as
   and when appropriate.

Environmental/Permitting

-  Since March 2011, the Company has progressed many issues raised
   through the TAC process, including the requirement for RMGC to
   address in excess of 500 questions raised through the most recent
   public review period.

-  On August 26, 2011, RMGC submitted to the Ministry of Environment
   ("MOE") a comprehensive document, addressing all the relevant aspects
   of the Project questioned through the most recent public review
   period. In September, 2011 the MOE submitted a supplementary request
   for information to RMGC which has now been answered in full. The
   majority of members of the TAC visited Rosia Montana on October
   19/20, 2011 to understand better the site of the Project and its
   potential impact on the environment.

-  The Company believes all the consultation issues will need to be
   resolved to the satisfaction of the MOE before a further TAC meeting
   is onvened. However, the Company understands that a further, and
   potentially final, TAC meeting is expected to be held in the next
   month. The Company is unable to give guidance on the time that it
   might take the TAC to release its recommendation following a final
   meeting. Ultimately, the EIA must be approved by a Cabinet decision
   of he Romanian Government who will, if satisfied, issue an
   Environmental Permit ("EP") for the Project. Gabriel
   understands that such decision process by the Cabinet could take a
   sixty day period from the TAC recommendation.

-  While the EP is the most important project approval, and is not
   linked to the issuance of other required permits, licences and
   certificates, there has been limited recent progress in respect of
   other permitting activities. At the end of the third quarter of 2011,
   RMGC held 19 out of the total number of 22 endorsements necessary for
   the approval of the amended zonal urbanization plan for the
   industrial area of the Project and had obtained 10 endorsements out
   of the revised total of 13 endorsements necessary for the final
   approval of the zonal urbanization plan for the protected area of
   the historical centre of Rosia Montana.

Archaeology and Preservation of Cultural Heritage

-  The National Archaeology Commission of Romania met on July 12,
   2011 and recommended approval of the ADC to the Alba County
   Directorate for Culture and National Patrimony. On July 14, 2011,
   the Alba County Directorate for Culture and National Patrimony
   issued a new ADC to RMGC for the Carnic open pit, which complements
   those it already holds for the Cetate and Jig open pits.

-  With the ADC for Carnic issued, RMGC has commenced further
   detailed archaeological work in the old underground mining galleries
   that lie under the historical protected area of Rosia Montana
   ("Protected Area"). This work has focused on opening up previously
   unexplored Roman galleries and the commencement of archaeological
   rehabilitation work on underground development adits and old mining
   areas that have never been restored for public interest. RMGC is in
   the process of restoration work that will allow these areas to be
   opened up to the public as part of the long term museum initiatives
   funded solely by RMGC in the Protected Area.

-  This is just one of a series of elements of a commitment by the
   Company of approximately US$140 million that has been or will be
   invested over all phases of the Project in local heritage and culture
   in and around Rosia Montana, together with funding research,
   appraisal and consolidation-restoration works of historical
   monuments across Romania included in the National Program for the
   Restoration of Historical Monuments. This commitment includes the
   establishment of a special commission, to include independent
   experts, which will monitor the work undertaken by RMGC.

Employment and Economic Benefits for Romania

-  Given the critical importance of sustained economic development
   for Romania, the Company continues to draw public and political
   attention to the significant employment and economic opportunities
   the Project brings, while at the same time aiming to conform to the
   highest standards on engineering, environmental, cultural and social
   matters.

-  The Company's communication efforts are fact-based, focusing on
   the critically-needed employment and economic advantages the Project
   will bring to Romania as well as the benefits to an area that has
   endured significant damage to its cultural heritage and environment
   through many years of mining activities and neglect.

-  RMGC currently employs approximately 460 people, with approximately
   85% hired from the local Rosia Montana community, and the Company
   is investing in training and skills assessments for the
   construction phase of the Project.

Corporate and Social Responsibility (CSR)

-  Gabriel takes pride in its commitment to achieving the highest
   levels of sustainability from workplace safety to community and
   environmental responsibility. It has a clear goal of attaining
   business performance through a dynamic process of continuous
   improvement in all aspects of its business and respecting all
   stakeholders. The Company invests significant resources into its CSR
   programs, which in Romania is a multi-dimensional commitment managed
   by RMGC covering employee training and safety, local communities,
   living traditions, direct and indirect social impacts, educational
   programs, environmental protection, community sponsorship and
   heritage aspects.




                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

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