Remember the Polyus rumors surrounding KRY and the beginning of 2007....here is an article from Oct 2007...very interesting.

Polyus Gold Joins Russian State-Led Delegation to Venezuela

By Stewart Bailey and Steven Bodzin

Oct. 26 (Bloomberg) -- OAO Polyus Gold, Russia's largest gold
producer, has joined a state-led delegation to Venezuela this week, signaling the company may consider its first investment outside its home country.

Polyus directors were part of a group including Russia's Deputy Prime Minister Alexander Zhukov that met with Venezuelan mining officials yesterday, according to Rusoro Mining Ltd. Chief Executive Officer Andre Agapov, who said he attended the meeting.

``That members of Polyus are part of an official Russian delegation to Venezuela is a significant development,'' Mark Turner, an analyst at Hallgarten & Co., said in an e-mailed response to questions. ``With news expected on the new mining law at any moment, it looks like the long delays suffered by the Venezuelan gold mining industry may be coming to an end and Russia seems keen to be part of its future.''

Venezuelan President Hugo Chavez is forging closer ties with Russia, a country he said on Oct. 9 was the ``guarantee of a polipolar world.'' Russian companies already have agreements to explore for oil and build pipelines and assault-rifle factories in Venezuela.

Rusoro, based in Vancouver, agreed this month to buy Gold Fields
Ltd.'s Choco10 mine for $532 million and said it would use its
Russian ties and political connections to speed the Venezuelan mine's development. The operation has missed production targets while its former management struggled to get water permits from the government.

`Bureaucratic Problems'
Zhukov told Venezuelan officials at the meeting yesterday he ``would like to see no small bureaucratic problems in the future,'' Agapov said. ``He'd like to see smooth sailing for Russian business'' in Venezuela.

Mijail Tomashevich and Artiom Borisanov, listed as two Polyus
directors, are part of the Russian delegation, according to an e-mail from the foreign ministry. Polyus spokeswoman Elena Evstigneeva declined to confirm their presence.

Crystallex International Corp., the Toronto-based gold producer that owns the Las Cristinas deposit in Venezuela, has waited more than three years for the permits it needs to develop the mine. Polyus was considering a bid for Crystallex and had hired BMO Capital Markets to evaluate the company, the Toronto- based National Post newspaper said on March 10, citing people it didn't name.

``A company like Polyus would be looking for something of size that's simple and straightforward,'' Catherine Gignac, an analyst at Wellington West Capital Capital Markets Inc., said in a telephone interview from Toronto. ``There's nothing as far along or as big'' in Venezuela as Crystallex's Las Cristinas deposit or the neighboring Brisas project, owned by Spokane, Washington-based Gold Reserve Inc, she said.

Venezuela drafted a new mining law last year that will give the state more control over the mining industry. The final approval of the bill has remained in limbo for more than a year.

To contact the reporters on this story: Steven Bodzin in Caracas at
sbodzin@...; Stewart Bailey in New York at
sbailey7@....

Last Updated: October 26, 2007 16:33 EDT