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Message: El Pauji Concession - Concession denied after automatic approval last year?

El Pauji Concession - Concession denied after automatic approval last year?

posted on May 25, 2009 05:44PM

Below find the details of the El Pauji concession from GRZ's filings - there is no gold there; it was only to be used for Infrastructure for the Brisas mine, and it had already been extended by default under their own mining law last year when MIMAB failed to reply to the extention request.

"El Pauji Concession – To be utilized for Infrastructure

The El Pauji alluvial gold concession is for the exploitation of alluvial gold granted by MEM through a title published in the Official Gazette No.334,011 on July 20, 1988. The Company has an easement for the El Pauji concession for Brisas Project infrastructure purposes approved in both the operating plan by MIBAM in 2003 and the ESIA by MinAmb in 2007. Similar to the Brisas Alluvial Concession, the El Pauji concession had an initial term of 20 years and two renewal periods of 10 years each, at the discretion of MIBAM. The Company has a power of attorney to manage the concession on behalf of the concessionaire and, in accordance with Article 25 of the Mining Law, filed an application to extend the concession for another 10 years on January 17, 2008, following the same procedure utilized for the Brisas Alluvial Concession. As was the case with the Brisas Alluvial Concession, MIBAM did not respond to the extension application within the six month time period provided for in Article 25 of the Mining Law. Venezuelan legal counsel advised the Company that the extension application was automatically approved again, due to the positive silence provision set forth in Article 25 of the Mining Law."

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