Resource World Magazine

MINING Astur Gold's European Renaissance by David Forest local economy would be long and sustained. Projected mine life ranges from one to nearly two decades, with significant annual production of over 100,000 ounces. With such prospects identified, local support for the mine surged. An independent survey of five towns near the project found that nearly 75% of residents were in favor of developing Salave. The next test of local support was with the regional, Asturian government. In July 2011, Astur started the environmental impact assessment process, testing the regulatory waters. Positive indications soon emerged when, in late 2011, the company was granted permits for geotechnical drilling at the project. Then a year later, in November 2012, Astur put out the big news: regional officials had issued a positive environmental impact statement for most aspects of the proposed Salave development. The government has asked for some additional details on a few parts of the mine, and Astur has also made some post-application changes to its plans, such as going cyanide-free in its process circuit. But all indications appear to be that mine development will go ahead. In fact, the company's vision of balancing environmental sustainability with economic development has been strong enough to attract an unexpected member to its board of directors: Greenpeace co-founder and "sensible development" champion Dr. Patrick Moore. The next several months should be busy for the company. Management believes there is potential for growing the resource further, and is considering drilling to target deeper zones, potentially holding higher-grade mineralization. Astur is also moving to get an up-close look at the mineralization already identified. The company signed a deal in January for construction of a 2,200 metre underground decline, and has since arranged a $10 million loan for project development. Astur's Salave is an example of how mining could come back into favour, as global economic problems prompt a return to one of humanity's most basic businesses. n Astur Gold Corp. [AST-TSXV] is a big fan of its NGOs. That's because groups operating near the company's Salave gold project in northern Spain can't wait to see the mine built. Unlike many parts of the world, where NGOs fight tooth and nail against mineral development, residents near Salave have formed an organization, 3,500 members strong, to support development – "Yes to Work, Yes to the Mine." The name gives a clue as to why locals would take this unusual tack. With Spain suffering record unemployment, especially the nation's politically-active youth, mining isn't seen as a bogeyman; it's viewed as it was during centuries past a chance to make a good, honest living. This support is an interesting and unexpected benefit of building a mine in a developed nation. Indeed, Astur's move to mine gold in Spain seems somewhat of a contrarian play. Intense anti-mining protests in places like Greece and Romania have made it appear that Europe wants nothing to do with the "old, dirty" business of digging rock. The same might have been true of Spain in boom times. But Astur has arrived on the scene at a critical period in the country's development, one where sentiment is changing. The company acquired Salave from Lundin Mining in an early2010 deal that came just as Spain's economic problems broke full-force. As economic growth in the nation contracted, and employment worsened, the project emerged as a potential bright spot for the Spanish economy. The advanced stage of the project made it easy to see the potential. Within days of closing the project acquisition in April 2010, Astur released a substantial resource estimate: over 2 million ounces gold grading approximately 3 g/t. To get this quick ounce count, Astur didn't have to drill a single hole. The numbers were compiled from drilling results gleaned by previous owners, including Rio Narcea, Cominco, Rio Tinto and Newmont through the years. Drilling to date totals 64,377 metres in 430 holes (235 diamond drill holes) with over 40 million euros spent on exploration. Things progressed quickly from there. In early 2011, Spain and the wider world got the first hard numbers around the mine's moneymaking potential; a Preliminary Economic Assessment showed that both open pit and underground mining operations at Salave would create sizeable net present values. Figures ranged from $374 million up to $576 million using a baseline gold price of US $1,100/oz. Geotechnical drilling for underground development at Astur's Salave The study also showed Salave's cash injection into the Project in Spain. Photo Courtesy of Astur Gold Corp. JUNE 2013 www.resourceworld.com 27

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