Greece is set to overtake Finland as Europe’s largest gold producer within four years, as regulators in Athens sign-off on mines kept on hold for more than a decade by official red tape and environmental rules.
Last year Perth-based Glory Resources successfully completed A$42.5 million in capital-raising and acquired a 100 per cent interest in the Sapes Gold Project – a high-grade gold deposit located in north eastern Greece The company says that its immediate strategy is to progress development of the Sapes mine 30km northwest of Alexandropoulis, and undertake further exploration.
Glory estimates the mine will have an output of 80,000 ounces of gold a year when production gets underway and that it will employ around 200 workers. The company expects to pay around $80 million in taxes and $22 million in royalties during the life of project, based on a gold price of $1,200 an ounce.
The Sapes mine has a total estimated capital expenditure of US$100 million and operating costs of US$297 per ounce over the projected seven year life of the mine. In partnership with Canadian company Eldorado Gold Corp, Glory Resources are developing three other mines in Macedonia that could turn Greece into Europe’s biggest producer of the precious metal by 2016.
Gold mining is gathering momentum in Greece after the Greek government began a “fast-track” approvals program, spurred-on by country’s economic crisis. “There’s clearly evidence that Greece has woken up to the potential of their mining industry,” says Jeremy Wrathall, chairman of Perth-based Glory Resources. “Politicians increasingly realise that a pro-mining stance is appropriate due to job creation potential.”
Greece was Europe’s largest bauxite producer and the world’s biggest supplier or perlite (used in insulation and as a soil replacement in horticulture) in 2010, according to the US Geological Survey. Gold is currently the only metal targeted by the Greek government for fast-track approvals.
“We think Greece has the potential to be a major gold producer,” said Wrathall. “It is bizarre that Greece is virtually unexplored because of the political situation that prevailed before the crisis. Modern exploration techniques have not been used in Greece at all.”
