TORONTO (miningweekly.com) – An initial assessment of the approved coordinates of a new park in the north-west of Colombia would not impede development of exploration and development company Eco Oro’s Angostura project, the company said on Thursday.

Environment authorities last week Tuesday declared plans to create a wilderness park and prohibit mining in a region rich in gold and silver where the Canada-based company hopes to produce precious metals.

The company said the Corporación Autónoma Regional para la Defensa de la Meseta de Bucaramanga has now approved the coordinates of the Regional Park of Santurbán and the officially declared boundaries do not impede development of the Angostura project.

The Angostura deposit, Eco Oro's flagship asset, covers a total area of 215 ha of which 193 ha or 90% falls outside of the surface boundaries of the park. Of the previously disclosed mineral resources for the deposit, about three-million ounces of gold equivalent or 89% of the indicated resources, and 2.3-million ounces of gold equivalent or 96% of the inferred resources, fall outside the surface boundaries of the park.

"We remain committed to developing Angostura in a way that is economically, socially and environmentally beneficial for all stakeholders," Eco Oro CEO Joao Carrelo said.

Eco Oro, formerly known as Greystar Resources, had faced opposition from local authorities, the country's inspector general and environmental groups. They called its Angostura gold project a threat to the delicate Andean ecosystem.

Critics have said mining would affect Santurban, a so-called "paramo" area believed to be the source of rivers and streams that supply water to 2.2-million inhabitants in Colombia.

The move by the country's Environment Ministry to create the park effectively rules out any mining in an area of more than 12 000 ha in northern Santander province.

A total of 6 394 ha of the company's 30 132 ha of mineral rights fall within the park boundaries.

Although the development of the Angostura project may be only marginally affected, a significant portion of Eco Oro's total noncore mineral and surface rights are covered by the surface of the park, for which the company would seek compensation.