Gabriel Resources (TSX:GBU) is learning first hand how desperate governments are getting to maintain control over their gold deposits first hand.

The Toronto, Canada-based junior exploration company has been exploring and developing the Rosia Montana project in west-central Romania since 1997. During that time, it has determined an indicated resource of 350,000,000 tonnes at a grade of 1.3 g/t of gold and 6 g/t of silver for a contained total of 14,600,000 ounces of gold and 64,900,000 ounces of silver in addition to an inferred resource of 30,000,000 tonnes at a grade of 1.2 g/t of gold and 3 g/t of silver for 1,200,000 ounces of gold and 3,000,000 ounces of silver.

That's a pretty significant deposit. In fact, it's the largest gold deposit in Europe.

The company announced that it was denied an "archeological discharge certificate" yesterday, which would appear to be another angle on the Romanian government's determination to prevent the mine from going into production under foreign ownership.

The certificate is required because the mine sits on top of an ancient Roman mine with archeological value, according to the government.

Paul Burchell, an analyst at Dundee Securities, said "the project can't proceed until 'the government has agreed that all archeological artifacts of worth have been identified and preserved, and that's when they get signed off"

The company refutes that however, in a statement released today.

According to the press release:

"The effect of the cancellation of ADC 4 on the balance of the Company's permitting activities for the Rosia Montana project requires further clarification. The cancellation of ADC 4 does not suspend, terminate or delay any permitting processes that are currently running in parallel. Nor does cancellation of ADC 4 affect, cancel or terminate any rights the Company currently holds, or has previously acquired, with respect to the Rosia Montana project. The Company will require a new ADC 4 in order to apply for a construction permit for the Rosia Montana project, however, sufficient time has been budgeted in its development schedule to apply and receive a new ADC 4 prior to applying for a construction permit."

The market wasn't convince however, as the stock has shed 30% of its value in the last five sessions to $1 where it trades as of December 10 at 7:41 a.m. PST.

According to the court, the decision by the Romanian Supreme Court is final and not appealable.

According to their Investor Relations representative however, the company plans to "re-file the application [for an Archeological Discharge Certificate] once they've had a chance to evaluate the rationale behind their decision".

When asked if this would impact the timeline for construction of the mine, she stated that it wouldn't, and the company viewed the development as an "administrative" issue.

When asked to comment on suggestions that these were tactics of the Romanian Government to wrest control of the deposit from Gabriel, her comment was "That's just speculation".