This is what they wrote:
Greystar Resources Ltd. (the "Company") (TSX:GSL - News; AIM:GSL) announced that the Ministry of the Environment, Housing and Territorial Development (MAVDT) has requested a new Environmental Impact Assessment (EIA) to be filed in respect to the development of an open pit gold-silver mine at the Company's Angostura project in Colombia. MAVDT has requested that the new EIA conform to new regulation Law 1382 of 2010 (Modified Mining Code) which requires that mining and exploration activity must be excluded from the "Paramo" ecosystem.Paramo is an ecosystem that consists of mostly glacier formed valleys and plains with lakes, peat bogs and, wet and dry grasslands intermingled with shrub lands and forest patches. The definition to determine the area of Paramo is that established by the Alexander Von Humboldt Biological Resources Research Institute (www.humboldt.org) in Colombia. While the definition of Paramo is determined by fauna, flora and other ecological categories, it is also defined by elevation.
MAVDT has requested that the new Angostura EIA adjust the occupied area to an elevation below 3,200 metres. As currently designed, almost all the project facilities and infrastructure are at a higher elevation than 3,200 metres. In addition, half of the proposed open pit resides above 3200 metres. MAVDT's request would require the Angostura project to be completely redesigned: including, identifying and acquiring new land positions to house displaced facilities and initiate new environmental base line studies. At this juncture, the Company has not had the opportunity to determine the feasibility of redesigning the Angostura project to comply with MAVDT's request. However this requirement will severely impact the project schedule and may have a material effect on its economic viability.
The original Angostura EIA was filed with MAVDT on Dec 22, 2009 before the modification of the Mining Code on February 9, 2010. At the time of the filing, Greystar was led to believe that the Modified Mining Code would not apply to the Angostura project. The request by MAVDT for a redesign of the project and a new EIA was not expected or anticipated by the Company.
Greystar has begun the process of filing an appeal of the notification from MADVT. MADVT must respond to the appeal within fifteen (15) working days.
Greystar has worked diligently and to the highest environmental standards for more than 15 years to develop the Angostura project. The International Finance Corporation (IFC) is the Company's largest shareholder. To date, the Company has spent approximately CDN $135 million and the Company employs 350 people.
A Preliminary Feasibility Study (PFS) was completed describing all the areas of mining activity as well as the efforts made to minimize environmental impacts particularly in the Paramos. The PFS envisions a project with US$1 billion in capital expenditures and US$3 billion in operating expenditures over the life of the project. The project will employ 1,500 people during construction and 850 people during its 15 year mine life. The PFS was used to develop the EIA according to the terms of reference issued by the MAVDT.
Greystar is in the midst of completing a Definitive Feasibility Study (DFS) on the Angostura project that is expected to be published in the second half of 2010. In addition the Company has begun the process of securing US$650 million in project finance from international sources.
Greystar is committed to developing the Angostura project using best industry practices in social and environmental stewardship. Through its association with the IFC, the company has brought objective guidance to this commitment. Greystar will continue to work with the Colombian Government to demonstrate that the Angostura project can deliver exceptional economic returns for all Colombians while allowing the Paramos ecosystem to flourish.
Greystar will host a telephone conference call for investors and analysts on Monday, April 26th, at 8:00 a.m. PDT (11:00 a.m. EDT) to discuss the request by the Colombian Government for a new Angostura environmental impact assessment. Steve Kesler, Director, Fred Felder, Executive Vice President and Geoff Chater, Vice President Corporate Development of Greystar will take questions. The conference call may be accessed by dialing toll-free 1-866-223-7781 in Canada and the United States, or 1-416-641-6117 in the Toronto area and internationally. The conference call will be archived for later playback and may be accessed by dialing 1-416-695-5275 or 1-800-408-3053 and entering the pass code 7108410. The archived playback will be available until May 10, 2010 at 11:59 p.m. EDT.
About Greystar Resources Ltd.
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disclosure: no position in GSL.to (you think i'm nutso or something?)