Roy S. Carson:  Deputy, it’s Roy Carson here, from VHeadline. How are you? I’m sorry about the interference on the phone, but I have a person from the US on the line now, ok? Yesterday, I got a letter from Mr. Andy Kolenda in English, I’ll read it in English, do you understand? “Do you know that congressman has…?”

Ricardo Gutierrez:  Ah, no, I don’t speak English.

Roy S. Carson:  Ok, he says that congressmen in Venezuela have no power to affect politics in Venezuela. I think that he’s another nutcase who has nothing to do with Venezuela.

Ricardo Gutierrez:  Yes.

Roy S. Carson:  The power all of you have at the National Assembly is executive, right?

Ricardo Gutierrez:  One moment… what are you saying?

Roy S. Carson:  You are a member of different committees at the Parliament, right?

Ricardo Gutierrez:  Yes. I am the president of the Permanent Committee for Economic Development… the committee I belong to.

Roy S. Carson:  And you are a representative in the Parliament for which state of Venezuela?

Ricardo Gutierrez:  Portuguesa

Roy S. Carson:  Portuguesa, ok…

Ricardo Gutierrez:  A state with important agricultural development… the most important state in matters of agricultural development.

Roy S. Carson:  Yes, I know Portuguesa… but in the matter of mines and mining, you are in a committee about that?

Ricardo Gutierrez:  The committee I preside is involved with the development of mines… the transformation and trade of resources such as iron, aluminum, oil, gold (inaudible), etc.

Roy S. Carson:  Correct me if I’m wrong, as a congressman and member of that committee, you have the same functions as a senator or a congressman in the United States.

Ricardo Gutierrez:  Yeah…well, at this moment, no… not in the Venezuelan parliament, no, because the Venezuelan National Assembly has lost political force against an Executive Power that has become too strong.

Roy S. Carson:  So, legislative power in Venezuela has power to make decisions, or only recommendations?

Ricardo Gutierrez:  I just make recommendations.

Roy S. Carson:  Ah, ok, perfect. The last time we spoke, you said that you would be holding a meeting on Monday… what happened with that?

Ricardo Gutierrez:  Well, we have had some delays with the report, but it is ready, it has already been sent to each one of the organizations involved with mining issues in that southern region of Venezuela. This communiqué we have signed is already on its way to the Ministry of Basic Industries (MIBAM), to the Venezuelan Corporation of Guayana (CVG) and it’s also on its way to the Environment Ministry, which is in charge of the permits, so all activities can take place, given the fact that mining is taking place in parts of the Amazon, a very fragile environmental area.

Roy S. Carson:  Ok, last Monday’s meeting… who went to that? The Mining Ministry or…?

Ricardo Gutierrez:  It’s called Ministry of Basic Industries (MIBAM). Others that were present were the CVG, an official entity, and the Environment Ministry.

Roy S. Carson:  Ok, so, Environment, MIBAM, CVG, all of them were present at the meeting, right?

Ricardo Gutierrez:  Yes.

Roy S. Carson:  The recommendations from the meeting… what happened with those? Were they sent to the President or what?

Ricardo Gutierrez:  What? I did not understand..

Roy S. Carson:  The recommendations from the committee, or from the meeting with all the ministries, what happened with that?

Ricardo Gutierrez:  The recommendations… the purpose of that meeting, which will continue after we approve the report, is to give the President… (inaudible) of development for that region where the Las Cristinas mines are located. The mines are owned by the CVG, and some contracts have been signed with Crystallex, a foreign company operating in Venezuela.

Roy S. Carson:  So, all permits for Crystallex are done and ready to be announced?

Ricardo Gutierrez:  No, we want the President to define, not only the definitive authorization for Crystallex to start working, but also an integral development plan for the region, because there are many other mining projects there, not just tied to gold exploitation, but also other activities, and we want all those things to be developed within a plan of development for that region.

Roy S. Carson:  So, the announcement about the permits, will be the same announcement for the comprehensive plan for Bolí;var state?

Ricardo Gutierrez:  Precisely, that’s the way it’s going to be, because right now, there are no problems with the permits, that has been solved.

Roy S. Carson:  All the problems have been solved? All the problems you have had with Crystallex have been solved? There are no more problems to discover or that might delay things?

Ricardo Gutierrez:  No, I don’t think there are going to be any more problems. The environmental issues have been solved, especially those dealing with cyanide. We have taken the necessary technical measures to get rid of the cyanide. Another problem was that, along with gold, there are important amounts of copper, and we cannot afford to waste that. They have to develop a way to process that copper… we have overcome those obstacles.

Roy S. Carson:  About copper… I understand that was not part of the original contract with Crystallex, but, that something that can be fixed after Crystallex begins operations?

Ricardo Gutierrez:  Yes, of course, because in the area where Crystallex will begin its activities, there are very low amounts of copper, maybe 0.2 or 0.3. The problem might arise later on, but there will be time to take the proper measures, so…

Roy S. Carson:  Excuse me… this thing with the copper can be solved in one, two, three, four years… when the production is significant… yes.

Ricardo Gutierrez:  Yes, that is the technical report from CVG.

Roy S. Carson:  So, that’s naturally in the hands of CVG, who owns the land, but Crystallex is just the operator, right?

Ricardo Gutierrez:  Exactly. Yes, they own the concession.

Roy S. Carson:  When will president Chavez make his announcements about the total area?

Ricardo Gutierrez:  That’s… we can’t give an exact date, it’s part of the work we have to do. The President could authorize Crystallex to start activities before the official event. The President has given his approval for that project to begin.

Roy S. Carson:  It could be announced before an official event?

Ricardo Gutierrez:  It could be, it could be.

Roy S. Carson:  But this is also an international opportunity for the President to tell everyone that there is no problem with mines in Venezuela.

Ricardo Gutierrez:  There are no problems. The Government has a clear mining policy in mind, and the only issues raised have been environmental issues that have not been handled very well from both sides, but we have overcome them.

Roy S. Carson:  Wait a second, because I have Todd McSween on the line right, he is in Boston, United States. Todd, is there anything you want to ask?

Todd MacSween: I’m not sure what you have already asked, Roy. Good morning, Ricardo, I have some questions…

Ricardo Gutierrez:  Hey, how are you? I don’t speak English.

Roy S. Carson:  Listen carefully, because I know you can understand English if it is spoken carefully.

Ricardo Gutierrez:  Ok.

Roy S. Carson:  Todd?

Todd MacSween: The report you were talking about, has it been sent to Hugo Chavez?

Roy S. Carson:  I can answer that… yes, he said so.

Ricardo Gutierrez:  I’m listening.

Roy S. Carson:  The report has been sent to president Chavez, yes? The results of last Monday’s meeting are in President Chavez’s hands as we speak, right?

Ricardo Gutierrez:  Ok, I will answer that next week, when we have held the meeting (to make the announcement) … I know you are worried over there in the US, we will inform you in due time, because we, as well as the Government, want there to be a positive atmosphere regarding all mining activities that the Government is willing to develop… with mixed companies, and foreign companies.

Roy S. Carson:  But, there is no need for Crystallex to become a mixed company, because CVG owns the land.

Ricardo Gutierrez:  Right, because they don’t give out concessions, the CVG does.

Roy S. Carson:  Operator, just operator.

Ricardo Gutierrez:  Crystallex is just the operator.

Roy S. Carson:  So, they are not involved with any mixed companies. CVG is Venezuelan and owns 100% of the land.

Ricardo Gutierrez:  Right, they (Crystallex) are not involved. That’s the way it is. So, there are no problems regarding that.