Cannacord Morning Coffee and their continued musings. I could start making some educated guesses on what the market wants, but for now lets stay with KRY to receive their permit. The TSX gold index is down 14% so far today with every stock in the red so todays action is following on this weekness.
Gold Reserve* (GRZ : TSX : $1.99), Net Change: 0.31, % Change: 18.45%, Volume: 129,725
Crystallex* (KRY : TSX : $1.39), Net Change: 0.21, % Change: 17.80%, Volume: 2,740,804
Rusoro Mining* (RML : TSX-V : $0.85), Net Change: 0.03, % Change: 3.66%, Volume: 87,200
Is the Victor Hugo?
Rusoro, whose corporate strategy has been to consolidate the gold mining sector in Venezuela, made some interesting statements in the wake of last week’s unsolicited expression of interest for Gold Reserve. The expression of interest for Gold Reserve was part of the company’s normal course of business to further “PURSUE OTHER GOLD MINING OPPORTUNITIES IN VENEZUELA”. Rusoro will continue to actively pursue consolidation opportunities and further demonstrate its ability to successfully develop and operate gold mines in the country. Last week, we wondered aloud if the likes of Crystallex and Gold Reserve might eventually get swallowed up by someone with better Hugo Chavez/government relations. Wouldn’t there be huge synergies between Crystallex’s Las Cristinas and Gold Reserve’s Las Brisas? After all, aren’t both projects contiguous? The Las Cristinas (16.9 million oz) and Las Brisas (9.2 million oz) projects are among the largest, undeveloped gold deposits known worldwide. On July 10, Rusoro was selected as the partner of choice by the Venezuelan Government for gold mining opportunities in Venezuela. The company has successfully completed the acquisition of two operating mines – Choco 10 and Isidora – in Venezuela. Rusoro owns 43-101 compliant Measured and Indicated Resources of 6,930,000 ounces of gold (84 Mt grading 2.6 g/t gold) and additional Inferred Resources of 6,339,000 ounces of gold (108.2 Mt grading 1.8 g/t of gold). The company is targeting production of approximately 150,000 oz/Au in 2008. Gold Fields (GFI) is the largest shareholder of Rusoro, owning roughly 38% stake in the company.
