Trouble for Gold Exploration in Santurbán

The National Mining Agency of Colombia or ANM for its spanish acronym, granted an extension to the Canadian company “Eco Gold Resources” (formerly know as “Gray Star Resources”) for the exploration stage of the mining title granted to the same company, located in the municipality of Vetas and California in the department of Santander, Colombia. The extension was granted due to “administrative silence” from the ANM, not timely responding to the extension request made by the mining company.

The granting of the extension contemplates exploration in just 46% of the area of the project Angosturas, which is currently carried out by the canadian company. Eco Gold Resources claims that exploration in just 46% of the total area of the project makes it economically unviable. The ANM relies on the resolution VSC 002 of August 8, 2012, which stipulates that 54% of the area covered by the mining concession contract is considered moorland. The new mining code and the National Development Plant do not allow mining activities such as exploration and exploitation on moorlands.

At present Eco Gold Resources claims the National Mining Agency has no authority to restrain the area contemplated on the extension, given that it was granted due to “administrative silence”.

MENSAL EMERALDS TRADING agrees with all conditions set forth in any mining activity, as long as these look after ecological and social wellness.