Crystallex in talks with ministry over Revemin mill as deposits dry up - Venezuela

Wednesday, September 3, 2008

Canadian miner Crystallex International (TSX: KRY) reported it has entered discussions with Venezuela's ministry of basic industries and mining (Mibam) regarding the future of the Revemin mill at El Callao in Bolívar state, as the company's nearby deposits have been exhausted.

Since acquiring Revemin in 2000, Crystallex has processed gold ore from its Tomi open pits, Tomi underground and La Victoria - which have run out of ore - as well as certain ore from local cooperatives, the company said in a statement.

The discussions aim to determine how the mill can be used for the benefit and sustainable development of communities in the area. Talks are at a very early stage, the statement said, adding it would be premature to comment on possible decisions.

Crystallex also holds the concession to the massive Las Cristinas gold project, some 200km south of El Callao, which has been waiting for permits for well over a year. Recent discussions with Venezuela's environment ministry regarding the project have been "encouraging," the company said, adding it will begin construction upon receipt of the environmental permit.

The Las Cristinas deposit has 464Mt grading 1.13g/t gold, or 16.9Moz contained, in proven and probable reserves plus 629Mt grading 1.03g/t gold, or 20.8Moz contained, in measured and indicated resources.

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