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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: EPS requests speedy transfer of Mines Mining Bonanza

Re: EPS requests speedy transfer of Mines Mining Bonanza

posted on Feb 12, 2009 02:07AM

sasa, hard to decipher but are they talking about Tomi? bonanzas is a subsidiary of kry.....scroll down to tomi

Crystallex International Corporation explores for, mines and produces gold in Venezuela. The Company’s principal asset is its interest in the Las Cristinas project located in Bolivar State, Venezuela. Its other assets include the Tomi operations, the Lo Increible properties (which include the La Victoria deposit), and the Revemin mill, all of which are located in Bolivar State, Venezuela. During the year ended December 31, 2007, the Company produced approximately 34,000 ounces of gold from its operations in Venezuela, including the Tomi open-pit and underground mines, the La Victoria open-pit mine and ore purchased from third parties. All the ore from these sources is processed at the Company’s Revemin mill.


The Las Cristinas Project


The Las Cristinas project is located in Sifontes Municipality in Bolivar State, Venezuela, approximately six kilometers west of the village of Las Claritas. The Las Cristinas project encompasses four principal zones of mineralization, including the Conductora-Cuatro Muertos and Potaso (Conductora), Mesones-Sofia (Mesones), Cordova and Morrocoy areas, which together constitute the Las Cristinas Deposits. The Las Cristinas Deposits are located on four contiguous areas, Las Cristinas 4, 5, 6 and 7, that total 3,885.6 hectares in extent.


The Company's interests in the Las Cristinas Deposits are derived from a Presidential decree pursuant to which the Government of Venezuela reserved for itself, through the Ministry of Energy and Mines, the direct exploration and exploitation of the gold ore located in the Las Cristinas Deposits and granted to the Ministry of Energy and Mines the right to contract with the Corporacion Venezolana de Guayana (CVG) the activities required to carry out such exploration and exploitation; an agreement between the Ministry of Energy and Mines and the CVG pursuant to which the Ministry of Energy and Mines granted to the CVG the right to explore and exploit the gold ore located in the Las Cristinas Deposits and to enter into operation agreements with third parties for such purposes, and a mine operation agreement between the CVG and the Company dated September 17, 2002 (the Mine Operation Agreement). The CVG authorized the Company and the Company agreed to make all investments and carry out all works necessary to explore, develop, exploit, commercialize and sell the gold mineral contained in the Las Cristinas Deposits for the CVG.


Tomi Operations

The Tomi operations comprise approximately 500 hectares and are held by Mineras Bonanza, C.A. (an indirect, wholly owned subsidiary of the Company) under a concession. In 2007, the Tomi operations consisted of two active open-pit mines (McKenzie and Fosforito) and one underground mine (Charlie Richards). The Fosforito pit was depleted in early 2008. Open pit mining ceased at the Milagrito open pit mine in 2006. Open pit and underground mining is conducted by mining contractors. The Tomi concession is located approximately 16 kilometers northeast of the town of El Callao in the El Callao District, Bolivar State, Venezuela.


Lo Increible Properties


The Lo Increible Properties formed part of a land package that totaled 10,017 hectares prior to the Vengroup Transaction. The La Victoria mine has been the only source of the production from the Lo Increible properties. The Lo Increible properties were held indirectly by Osmin Holdings Limited (Osmin) under a combination of mining operation agreements and concessions. In December 2005, the Company acquired, through an indirect, wholly owned subsidiary, the minority shareholder interests in Lo Increible and owns 100% of Osmin (having previously owned 51%). The Company further acquired the 30% outstanding interest in Tamanaco Holdings Limited that controls the Lo Increible Mining Company de Venezuela, (C.A.), (the Vengroup Transaction). In August 2006, Tamanaco amalgamated with Osmin.


The Vengroup Transaction resulted in the Company acquiring the Lo Increible 2, Lo Increible 4C and Lo Increible 4D parcelas, and La Victoria concession and relinquishing the Lo Increible 4A and Lo Increible 4B parcelas. Parcelas are concessions that are held by CVG on which CVG entered into operating agreements with third parties. As a result of the Vengroup Transaction, the Company’s Lo Increible Properties total 7,800 hectares in extent. The resources at the La Victoria mine are located on the Lo Increible 4D parcela and the La Victoria concession. The Lo Increible 2, 4C and 4D properties are governed by contracts with the CVG, whereas the La Victoria property is a concession.


Revemin Mill


The Revemin mill is located approximately 3 kilometers southeast of the town of El Callao in the El Callao District, Bolivar State, Venezuela and has the capacity to treat 1,250 metric tons of ore per day. The Revemin mill processes ore from the Tomi and Lo Increible operations, and ore purchased from independent miners at nearby operations. The Company holds its interest in the Revemin mill through Revemin II, C.A. The Revemin mill extracts gold using a conventional carbon-in-leach circuit.

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