The Venezuelan Ministry of Environment turned down a permit to start exploration works at Las Cristinas gold deposit reported on Wednesday Canadian mining company Cristallex.

According to the company, the move is not consistent with the environmental clearance that has received so far for the project.

Crystallex told stockholders that the ministry made reference to the presence of neighboring indigenous people, small mining and environment in the area of Imataca, southern Venezuela, to substantiate its decision to dismiss the application.

The company "is committed to defend its rights in the Las Cristinas project and has plans to reply to this matter strenuously, based on its legal rights to protect the interests of our shareholders," stated the report issued by Crystallex.

The company has been waiting for the approval of its exploitation permits since being awarded a bid in 2002.