Crystallex: No impact on future output by latest changes to Las Cristinas - Venezuela

Tuesday, September 9, 2008

Changes to Toronto-based Crystallex International's (TSX, Amex: KRY) Las Cristinas gold project in Venezuela requested by the government have not resulted in modified output forecasts or other crucial aspects of the project, company CEO Bob Fung said.

"There were no modifications to the mine operating agreement, no changes to the processing facility and no changes affecting the production rate," Fung said in a webcast speech at the 2008 Denver Gold Forum.

The changes were mainly to the project's environmental footprint and aim to foster sustainable development in nearby communities, he added.

Following more than a year of delays on Las Cristinas' environmental permitting, in June Crystallex started its most recent series of talks with Venezuela's environment ministry (MinAmb) on alterations to the project.

MinAmb then gave Las Cristinas' EIS the green light but later retracted the approval, following which Crystallex issued a letter of appeal, to which the ministry has until October to respond.

READY TO GO

With an approved feasibility study in hand, engineering work 95% complete, various infrastructure in place and all long-lead equipment delivered and paid for, Crystallex only requires approval of the EIS to proceed in building one of the world's largest gold mines, company president Bob Crombie said in a speech at the forum.

Crombie said the equipment is being stored in Houston where it is insured and being maintained.

The president also stressed the project's low energy costs averaging US$0.03-0.05/KWh for electricity and roughly US$0.05/l for fuel.

Las Cristinas has 464Mt grading 1.13g/t gold or 16.9Moz contained in proven and probable reserves, in addition to 629Mt grading 1.03g/t gold or 20.8Moz contained in the measured and indicated categories. Inferred resources amount to 230Mt grading 0.85g/t gold or 6.3Moz.

Crystallex shares Tuesday on the Amex were down 0.96% at midmorning, trading at around US$1.03/share.

Pablo Gaete
Business News Americas