TORONTO (miningweekly.com) – Shares in Vancouver-based Greystar Resources jumped more than 40% on Monday morning, after the company said an appeal to reinstate the environmental-impact assessment (EIA) for its flagship gold/silver project in Colombia had been successful.

An earlier decision had been reversed and the EIA for the Angostura project has been reinstated as filed, Greystar said.

The Colombian authorities will now move ahead with a review of the document.

In April, Greystar was told by the Colombian Ministry of the Environment, Housing and Territorial Development (MAVDT) to file a new EIA for Angostura, because the pit and infrastructure under the current plan will infringe on areas protected by new mining legislation.

But the company disputed the decision on several counts, and launched an appeal soon afterwards.

“We believe that Angostura can be developed in a sustainable fashion that respects the integrity of the environment while delivering economic benefits to all stakeholders,” CEO Steve Kesler said in a statement on Monday.

“We will continue to work closely with the Colombian government and MAVDT to resolve all concerns related to the development of Angostura."

Greystar is busy completing a definitive feasibility study on the Angostura project that is expected to be published in the second half of 2010.

The firm has also started working towards raising $650-million in project finance to fund the large mine.

Shares in Greystar were up 43,88%, at C$5,41 apiece, by 09:38 in Toronto. The stock traded as high as C$5,69 earlier in the session.

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