20.04.2005 23:06:00
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Glamis Gold Comments on Recent Events in Guatemala
News Editors
RENO, Nev.--(BUSINESS WIRE)--April 20, 2005--Glamis Gold Ltd. (TSX:GLG) (NYSE:GLG) announced today that mine construction at the Company's Marlin project in Guatemala remains on schedule for commercial gold production in the fourth quarter of this year. In the interest of open communications and transparency, Glamis is preparing a series of communications for the benefit of the many stakeholders involved in the project. These communications will address the positives as well as certain inaccuracies that have been reported about the project, including accounts of violence or threats of violence, allegations that Glamis and the Guatemalan government did not properly consult with local communities before commencing with development, accusations that Marlin will pose serious environmental risks to the land and local water supplies and suspicion that the net benefit to the local area and to Guatemala will be minimal. These communications will take place in a series of press releases over the next several weeks.
Glamis has been widely recognized by regulatory agencies and its peers for its dedication to environmental excellence. The guiding principals of our environmental and reclamation programs are to minimize the impact of mining on the local surroundings and to perform concurrent reclamation programs to ensure timely and sustainable return of mine sites to their future intended use. The Company is committed to developing the safest and most environmentally sound working conditions at each of its mine sites for the benefit of its employees, local communities and shareholders. Finally, at each of the mines, Glamis strives to support local communities in the planning process before, during and after construction. The Company partners with local organizations to provide further community support in training, microfinance and sustainable development initiatives. Glamis takes great pride in its support of local communities and the diverse range of benefits it helps to bring to those countries in which it operates.
Glamis would like to place into context one tragic event that has been the subject of recent commentary. In the early morning hours of March 13, 2005 in the community of San Miguel Ixtahuacan, located approximately seven kilometres from the Marlin Project, an altercation occurred where Mr. Alvaro Sanchez, a bus driver for a contractor company, was shot and killed. Review of police and judicial reports, as well as eyewitness testimony, indicate an off duty guard with a security contractor hired by Glamis entered into an altercation resulting from a private dispute, during which Mr. Sanchez was shot and later died at the hospital. The security guard then fled the scene and remains at large.
Immediately following the incident, Glamis representatives met with the family of Mr. Sanchez and assisted them in filing wrongful death charges against the alleged assailant. The Company also filed its own charges for theft of a corporate vehicle and requested that the security contractor approach the family and offer assistance in their time of need. At no time was a cover-up attempted. Glamis has pledged to cooperate fully with law enforcement authorities and will do everything in its power to bring the fugitive to justice. The entire community, including Company employees are saddened by this intolerable act of violence.
Prior to hiring the security contractor, Glamis thoroughly reviewed the use of force procedures employed by the firm to insure they were coincident with Glamis' desire to not use force except under very extreme circumstances. Glamis is undergoing another review of its operating and security procedures and will take whatever measures necessary to prevent incidents such as this in the future. The Company is dedicated to the safety and security of its employees and is committed to the completion of the project without further incident or disruption to the local communities.
In another instance, three residents of the municipality of Solala (approximately 120 km from the Marlin project) allegedly received death threats because of their opposition to mining in general and the Marlin project in particular. These coincide with the numerous death threats and threats of violence that have been directed toward Marlin project employees and contract personnel in recent months.
Glamis strongly opposes all acts of violence or the making of threats. In a statement to Glamis employees and contractors, Kevin McArthur, President and CEO said, "I wish to make it very clear that the company has no knowledge of any individuals or organizations taking hostile action or making threats toward Guatemalan citizens or others who have criticized the Company's efforts. Furthermore, the Company has zero tolerance for, does not condone and would never support such activities under any circumstances".
Glamis Gold Ltd. is a premier intermediate gold producer with low-cost gold mines and development projects in Nevada, Mexico and Central America. Plans call for growth from 400,000 ounces of gold production in 2005 to over 700,000 ounces in 2007. The Company remains 100 percent unhedged.
Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, include, but are not limited to those with respect to, the price of gold, the estimation of mineral reserves and resources, the realization of mineral reserves estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, Glamis' hedging practices, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims limitations on insurance coverage and the timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variation of such words and phrases or state that certain actions, events or results, "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Glamis to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the actual results of current exploration activities, actual results of current reclamation activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, possible variations in ore grade or recovery rates, failure of plant, equipment or processes to operate as anticipated, accidents, labor disputes and other risks of the mining industry, delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Other Considerations" in the Glamis Annual Information Form. Although Glamis has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Glamis Gold Ltd. (TSX:GLG) (NYSE:GLG)
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CONTACT: Glamis Gold Ltd. Michael A. Steeves Vice President, Investor Relations (775) 827-4600 ext. 3104 michaels@glamis.com www.glamis.com
KEYWORD: NEW YORK INTERNATIONAL CANADA INDUSTRY KEYWORD: MINING/METALS SOURCE: Glamis Gold Ltd.
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