This article came out June 2 2008 just a few days prior to KRY going back to the
table with the VZ gov't last year. It is interesting to see what has transpired
to now since this article. Did VZ actually have a plan that they are now
finally putting in to place ie gold law.... etc?

Extraction of gold shall be borne exclusively by CVG Minerva
(Eduardo Mendez Sanchez - 02/06/2008 21:17:34)

The Government is studying the metal extracted to be used only to support
international reserves

The Ministry of Environment will continue to deny permits to exploit gold in the
national territory to private companies while establishing the new economic
model that govern mining in the country.

One source who asked not release be identified said that the Government's
objective is to deal exclusively and the extraction of gold available through
the state CVG Minerva, so that the metal is used only as an endorsement of
international reserves .

To that end, officials from the ministries of the Environment and Basic
Industries and Mining remain together to define the coordinates in which they
allow the exploitation of mineral open pit.

"The Government has little interest in foreign companies continue taking the
gold. The aim is that the metal is extracted by Venezuela, stay at home and go
to the Central Bank," added the source.

The Ministry of Basic Industries and Mining nobody was available to testify on
this matter.

Unofficially became known that the main argument of the Government to justify
this measure is that resources will provide the country's oil industry and tax
revenues are sufficient to dispense with the revenue that could generate gold
exploitation.

"This will prevent environmental damage caused by gold mining. The aim is that
extraction is given when the activity is sufficiently justified from an economic
point of view. For the moment, there is no justification environmental impact,"
said the source.

Businesses in embers. Of the four companies that have a gold mining contract
with the Corporation Venezolana de Guayana, the only Russian-Rusoro through its subsidiary Promotora Minera de Guayana (PMG) - operated normally since the metal deposits Choco 10 and MS.

Operations at the mine Isidora, administered by El Callao Gold Mining, a
subsidiary of the U.S. Hecla, were suspended on the orders of the Ministry of
Basic Industries until further notice and Canadian Crystallex and Gold Reserve
were denied permission environmental waiting for three years.

Las Cristinas and Brisas deposits aspiring to exploit Crystallex and Gold
Reserve, respectively, are in the jungle area that forms the Imataca Forest
Reserve (Bolivar), where they banned all opencast mining, said the office of
Environment.

Experts in legal and economic matters believe that private mining will be
limited until the government approves the new law to govern the activity.

Since 2006 it is expected the legal instrument which provides for the repeal
temporary concession system that gave the Republic, and establish a model mining joint ventures in which the State, through the CVG, will have the majority
shareholding.


They call reactivation of Isidora

Workers in El Callao Gold Mining, a subsidiary of the U.S. Hecla, called on the
minister of Basic Industries and Mining, Rodolfo Sanz, and the president of CVG
Minerva, Luis Herrera, to authorize the reactivation of the mine and ordered to
Isidora 30 Workers who have blocked access to the site to lift the labor strike.

Sander Guilarte, representing employees of Hecla, believes that the Government
should allow labour problems are resolved directly between the employer and
employees, without the need for a halt to operations.

He admitted that there Hecla serious labour problems, among which some miners
are forced to strip off the mine to show that not carry gold in the intimate
parts. But acknowledging that the company has been receptive when asked to
suspend this practice. "There are still things that must be resolved, but that
does not mean that the operation of the mine be suspended," said Guilarte.
Prohibit its use and / or play in Venezuela

http://www.gda.com/consulta_noticias...