Glamis Gold Ltd.
TSX : GLG
NYSE : GLG

Glamis Gold Ltd.

September 08, 2005 20:00 ET

Glamis Gold Comments on IFC Compliance Office Report on Marlin Project; Participates in Groundbreaking Event with Guatemalan President

RENO, NEVADA--(CCNMatthews - Sept. 8, 2005) - Glamis Gold Ltd. (TSX:GLG)(NYSE:GLG) reported today that the Office of the Compliance Advisor/Ombudsman ("CAO") of the International Finance Corporation ("IFC") has issued its final "Assessment of a Complaint Submitted to CAO in Relation to the Marlin Mining Project in Guatemala". The Assessment was prepared in response to a complaint by a Guatemalan NGO regarding an IFC loan for construction of the Marlin Project. The principle conclusion of the Assessment is that the project does not pose a significant environmental risk and should provide social benefits to the local communities.

The Assessment includes a thorough analysis of Glamis and IFC efforts in understanding and planning for management of environmental issues and appropriate consultation with communities impacted by the project. The CAO concludes that environmental impacts have been properly identified with appropriate management plans put in place and that the health and environmental risks identified in the complaint are insignificant. The Assessment does recommend expanded consultation, particularly in areas outside of the immediate proximity to the project. Glamis has initiated broader consultations, and is supporting the formation of an independent environmental monitoring committee comprised of local stakeholders.

Commenting on the Assessment, Glamis President and CEO Kevin McArthur said, "Glamis has worked very hard to design and build Marlin to the highest environmental standards and we are gratified that the CAO has recognized these efforts. We also acknowledge our obligation for consistent consultation with affected local communities, and we are expanding our ongoing efforts to respond to the CAO's identification of gaps in the consultation process. Glamis understands that mining in Guatemala raises legitimate questions and we embrace the CAO's recommendation for continued dialogue. Of course, that dialogue must have transparency, honesty and respect as its foundation."

In related news, Mr. McArthur joined Guatemalan President Oscar Berger on September 6 to inaugurate a project to significantly upgrade 20 kilometers of road between the communities of Concepcion Tutuapa and San Miguel Ixtahuacan. Glamis will invest approximately US$5 million to upgrade this important artery used by residents to move people and products throughout the region. President Berger and Mr. McArthur were joined by the Mayor of San Miguel Ixtahuacan, Mr. Oswaldo Avila Perez, and other national and local community leaders. In remarks made during the ceremony, President Berger congratulated and thanked the Company for its investment. Referring to the startup of the Marlin mine, President Berger told the visiting dignitaries and local residents, "Nobody can lose; we are all going to win. San Miguel is going to win with new employment, economic activity as well as infrastructure ...This is an exemplary project." Mr. McArthur added, "We are pleased to continue to make significant contributions to social and economic priorities in Guatemala. This latest project will provide important improvements to help people get to work, to market their products, to visit family and to fully develop the human and economic potential of the area."

The road improvement partnership with the Guatemalan Government is the latest in a number of community social projects that the Company has supported throughout the period of exploration and construction of the project. Glamis has worked with local communities to provide scholarships and to build schools and clinics to address literacy and health issues in the region. The Company also supports the Sierra Madre Foundation with an annual grant of US$400,000 to carry out its mandate to provide job training, micro-financing, agroforestry and municipal capacity strengthening.

The Marlin mine has now reached 100% physical completion. Commissioning activities are underway and commercial gold production is expected in the fourth quarter of 2005. The mine is expected to produce approximately 250,000 ounces of gold and over 3.5 million ounces of silver in 2006.

Glamis Gold Ltd is a premier intermediate gold producer with low-cost gold mines and development projects in Nevada, Mexico and Central America. Plans call for growth from 400,000 ounces of gold production in 2005 to over 700,000 ounces in 2007. The Company remains 100 percent unhedged. More information on Glamis, including a complete copy of the Assessment, can be found on its website at www.glamis.com, which is also available in Spanish.

Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, include, but are not limited to those with respect to, the price of gold, the estimation of mineral reserves and resources, the realization of mineral reserves estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, Glamis' hedging practices, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variation of such words and phrases or state that certain actions, events or results, "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Glamis to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, possible variations in ore grade or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes and other risks of the mining industry, delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Other Considerations" in the Glamis Annual Information Form. Although Glamis has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

email requests for investor packets to: info@glamis.com

email questions/correspondence to: josephd@glamis.com


Contact Information

  • Glamis Gold Ltd.
    Joe Danni
    VP Corporate Communications
    (775) 827-4600 ext. 3123
    josephd@glamis.com
    www.glamis.com
    or
    Montana Explorada de Guatemala, S.A.
    Milton Saravia
    General Manager
    011/502-2385-6647