Crystallex and Venezuelan government start talks

The stocks of Canadian mining company Crystallex International soared on Tuesday as the company announced the beginning of talks with the Venezuelan Ministry of the Environment.

The news raised expectations about a mining license to develop Las Cristinas mine.

The Venezuelan government had instructed the Environment Minister Yuvirí Ortega to discuss the changes in the Las Cristinas Project in order to grant the permit, said Crystallex in a communiqué, Reuters quoted.

The huge deposit contains approximately 17 million ounces of gold.

Crystallex hoped to receive the final consent for the development this year. However, the Ministry of the Environment denied the license ending April. The move toppled by 57 percent the corporate stocks.

All in all, last Tuesday, Crystallex securities climbed from 0.52 to 1.17 Canadian dollars at the Toronto Stock Exchange as the eventual grant gave a cause for optimism.

"It is early for Crystallex to forecast how the authorization will be solved, but it relies on the support of the government and the National Assembly," stated the mining company.

Securities dropped in May after Minister Ortega promised to stop all pit mining in Imataca, the reserve where Las Cristinas is located.

Crystallex reported that ministerial officials had suggested possible changes to the project, such as lessening the environmental impact.