Crystallex International* (KRY : TSX : $1.08), Net Change: 0.43, % Change: 66.15%, Volume: 9,787,163
Gold Reserve* (GRZ : TSX : $1.75), Net Change: 0.45, % Change: 34.62%, Volume: 347,962
“Latin American's self-styled Bolivarian hero may be losing his populist touch.”
– The Economist, June 12th. According to Crystallex and Gold Reserve, the Venezuelan Ministry of Environment is reconsidering the issuance of environmental permits by seeking potential modifications to the Las Cristinas project, generally including: a) further optimization of local social projects; b) mitigation of the effects of open vein deposit mining; and c) improving end of life remediation plans. This is an unexpected development considering the events of the past couple of months (Crystallex was denied a permit in April), though we never did understand why the government wouldn’t allow the mine to be built and then change its ownership in their favour. If Chavez is going to expropriate assets, why not expropriate a ready-to-go mine and not merely the ground? The company admitted it was too early to know if a permit would be allowed, but said that the move was encouraging. It certainly is. We continue to worry about what will come if/when the mine is finished.
