TORONTO (miningweekly.com) – Vancouver-based project developer Astur Gold on Friday announced that its subsidiary, Exploraciones Mineras del Cantabrico (EMC), had filed a lawsuit before the Asturias Superior Court of Justice, in northern Spain, challenging the Ministry of Economy and Employment of the Principality of Asturias’ recent denial of the proposed Salave underground gold project.

Salave was considered to be one of the largest undeveloped gold deposits in Western Europe.

The ministry last month resolved not to grant approval for the proposed underground mine submitted by EMC for Salave, basing its decision on a nonbinding negative report related to water quality projections by the Cantabrian Hydrographic Confederation (CHC).

Astur contended that the CHC's reports on Salave had repeatedly been questioned for their lack of rigour and analysis, not only by the company and specialised independent consultants but also by the Geological Survey of Spain, which did not find any significant objections to the proposed project that could not be remedied with appropriate corrective measures.

Astur said the initial legal action sought to challenge this ruling and provide both companies with more time to consider their legal options to recover all historical costs incurred at Salave and projected lost profits from the proposed mine operation.

"We are extremely disappointed with the ministry's decision. Astur Gold and EMC have invested considerable financial resources to advance Salave as a modern, environmentally responsible gold mining operation.

“Our activities to date have resulted in the creation of desperately needed jobs in the region and a positive decision approving a new underground mine has the potential to create future economic opportunities, including significant employment and tax revenue for Tapia de Casariego and the Principality of Asturias,” Astur’s president and CEO Douglas Turnbull emphasised in a statement.

Astur Gold further announced that it had amended its loan facility agreement with RMB Resources to ensure the company had funding for approved activities in future.

The Salave deposit was once one of the largest gold mines in the Roman Empire.

The deposit currently had compliant measured and indicated resources of 6.52-million tonnes, grading 4.51 g/t, containing 944 000 oz of gold at a 2 g/t cutoff grade.