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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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Message: Canaccord MC on GRZ

Canaccord MC on GRZ

posted on May 01, 2008 08:30AM

Gold Reserve (GRZ : TSX : $2.80), Net Change: -0.88, % Change: -23.91%, Volume: 877,253

Guilty by association? You can read down below about the sad news Crystallex received yesterday from the Venezuelan government. Is this a major shift in Venezuelan policy to mining or is this, at least until the day this deposit goes into production, pointed at Crystallex only? Unlike the cash-strapped KRY, GRZ has its environmental permit in hand and has had its mine plan for Brisas approved. They even apparently have the support of the local indigenous peoples as well as the small miners in the area. GRZ also has about $100 million cash, which works out to about $1.28 per share. KRY has about $21 million. GRZ appears to have been more accommodating and therefore better treated by the Venezuelan government. We would guess that GRZ will be allowed to put their project into production. At that point, all bets are off. But to stop GRZ now? That just doesn't make sense. Venezuela needs the foreign expertise and their data just as much as they need the revenue.

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