Nov 26 2015
Continental Gold Inc. ("Continental" or the "Company") is pleased to provide an update on the permitting process for its flagship Buriticá project in Antioquia, Colombia and its designation as a Project of National Strategic Interest ("PINES") to Colombia.
On November 20, 2015, the National Government of Colombia published Decree 2220, 2015 regulating in detail Article 51 of Law 1753, which was passed by Congress on June 9, 2015. Law 1753 defines the National Development Plan for Colombia from 2014-2018, and Article 51 establishes that the national environment authority (ANLA) is the competent authority to review and approve environmental applications for PINES projects. Decree 2220 specifically applies to the Buriticá project, which is classified as a PINES project. The publication of this decree is the final legal process required to facilitate the filing of an updated environmental application amendment ("EIA") for the Buriticá project with ANLA.
"This new decree provides Colombia mining projects which are part of the PINES program a clear path forward to complete environmental permitting with the National Government and reach commercialization. We look forward to the day that new large-scale gold deposits, such as Continental's Buriticá project, commence production and contribute significantly to Colombia's mining sector, economic growth and social development", stated Santiago Ángel, President of the Colombian Mining Association (ACM).
Leon Teicher, Executive Chairman of Continental, stated: "The Colombian government has been invariably supportive of the Buriticá project as it is aligned with the government's national strategic objectives and could, once in full production, approximately double the legal production of gold in Colombia. We expect that, through the PINES program (which is designed to efficiently move projects through the Colombian legal process), ANLA will commence a thorough review of the Company's comprehensive EIA amendment application upon submission."
The Company remains on track to file the application for the amendment to its EIA with ANLA in January 2016 and, as a member of the PINES program, the application will be reviewed on a priority basis. The Company anticipates the completion of permitting prior to the end of H1 2016, keeping the estimated project timeline on schedule.
As at November 4, 2015, the Company maintains a healthy balance sheet with cash and cash equivalents (including doré inventory) of approximately US$34 million, which is sufficient capital to execute the Company's business objectives for 2016 and into H1 2017. Additionally, management is currently evaluating the potential for increasing production at its pilot-scale mining operation under its current permits, as well as cost-saving initiatives.
Source: http://www.continentalgold.com/