From GRZ: In our meetings with MIBAM officials they have indicated that they support the combined development of the Brisas and Las Cristinas projects, requested our assistance in facilitating the combined development and expressed the Government’s desire to have an interest in the resulting combined project.

Richard Marshall has said numerous times that KRY has not been approached by anyone from VZ about combining the projects.

How can both be true?

I'll take a stab at guessing since none of us here knows for sure unless we have an insider on the board. One possibility is that while Kry and Grz are both communicating with officals from MinAmb and Mibam they are not talking to the same people. It is quite possible for a ministry to have different approaches with 2 different companies. I doubt this is the case however.

If we look at the above statement from GRZ closely I'm left wondering why it says "In our meetings with MIBAM officials they have indicated that they support the combined development of the Brisas and Las Cristinas projects and requested our assistance in facilitating the combined developement" instead of they have REQUESTED the combined project!

Support in my opinion means "to give approval to (a cause, idea, or political party)". This indicates that the idea wasn't coming from Miban but they would support the idea if it came to be. The question then becomes who has proposed the idea. My guess is the GRZ proposed the idea initially and Mibam is willing to support the project. The second half of the sentence "requested our assistance in facilitating the combined developement"I believe means that if GRZ wants a combined project then it is up to GRZ to make it happen. If it was Mibam's idea then they would have approached KRY and told them so.

The second part of the statement from GRZ says "expressed the Government’s desire to have an interest in the resulting combined project" is Mibams way of saying that any combined developement won't be with a concession. GRZ has maitained they own the gold because they have a concession and MIBAM is making it clear that there will be no concessions.

Also part of the GRZ 2009 MD&A was the following "MinAmb officals have indicated that their primary concerns relate to enhancing the social projects and programs planned for the area, reducing the environmental impact during operations, improving the mitigation plans from the effect of the current mine plans, and improving the mine closure remediation plans at the end of the mine life including remediation of the past environmental damage caused by the artisan miners who had worked in the vicinity of both the Brisas and neighboring Las Cristinas project area. MinAmb officials also indicated that if these issues could be resolved in an acceptable manner this would enable the issuance of the full Permit to Affect. MinAmb representatives requested a proposal from the Company which will be reviewed with the participation of other appropriate entities of the government. The Company has prepared a proposal and is awaiting a meeting with MinAmb.

Both Kry and Grz were asked to meet with MibAmb last year after the permit was denied. As of March 31st 2009 Grz states they are still waiting for a meeting with MibAmb. Kry on the other hand had there meeting last year. Their changes were approved by Merly Garcia after a 2 day site inspection. The then vice minister gave Kry a letter stating the plan was acceptable and should be taken into account when deciding on the approval of the permit.

This is the huge difference between Kry and Grz IMHO!

The bottom line to all this is that Kry has a MOC, is in complience with CVG and has MibAmb acceptance with the letter from Garcia. Grz has not been able to meet with MibAmb and cling to the concept that they still own the gold because of their concession.

Are all the permits being held up because of GRZ? Probably!

Are the permits being held up because VZ wants one mine? Doubtful!

I would much rather be in Kry boots than Grz boots even if we go to arbitration!