The Romanian National Agency for Mineral Resources (NAMR) has begun the ratification process in connection with Euro Sun Mining’s licence for the Rovina Valley project.
Euro Sun has received project recommendations from NAMR after the agency completed its review in the form of a memorandum, which will now be sent to the concerned ministries for approval.
The project was awarded the mining licence in May 2015.
Euro Sun Mining president and CEO Scott Moore said: "We are very pleased to see the process to ratify our mining licence begin, following our successful public audience in June.
“Once ratification is completed, we will progress with the initiation of our environmental impact study.”
Spread over 27.68km² in west-central Romania, the project is located 300km north-west of the capital city of Bucharest and has measured and indicated mineral resources of 10.84Moz of gold equivalent.
It has three porphyry deposits comprising a north-northeast trend over 7.5km.
NAMR president Aurel Gheorghe said: “Following the lapse of the 30 statutory days after the posting date, the licence and the explanatory memorandum will be forwarded for endorsement to the competent institutions, in view of approving licence no. 18174/2015 by government decision, according to the applicable legislation."
A preliminary economic assessment (PEA) at the project indicated an average gold production of 196,000oz per annum over 19 years at cash costs of $379/oz Au.
The PEA also demonstrated that the project will have a pre-tax net present value (NPV) at an 8% discount of $316m and an internal rate of return (IRR) of 15.7%.