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Message: Chavez to russia again

Re: Chavez to russia again

posted on Sep 20, 2008 06:01PM

++++Chavez will first travel to close ally Cuba, and then to China, which Chavez calls a strategic ally, for the capitalization of a six-billion-dollar bilateral investment fund. He says Caracas will use it for "socialist productive projects."++++

Remember a month or so ago they signed memorandum of understanding for this.

Miners blocking the road. Miners really really really promised the cash owed will be paid on the 25th.

Now we know where the money is coming from. Chavez gets to "use" his 2 billion twice. IMO, this is a very good reason why we have had a delay in final resolution of Cristinas and Brisas.

High level probable outcome this week:

Crystallex stays and plays. Or, their interest gets bought.

Gold Reserve's concession gets bought by Chavez from this fund (handicap 75% chance, 25% chance GR will be jv partner). Or, Rusuro sign's jv for Brisas property.

Crystallex and Rusuro becomes "best buddies"(this is sarcastically stated but Fung will play ball as necessary. Gold Reserve's footprint will be solved.

Gold Fields will have a hand in this, directly or indirectly within 12 months. It may be immediate even though we won't know right away.

Finalization may take time for the above the play out but high level clarity will be achieved this week.

Of course, I may be proved 100% wrong over the coming days/weeks/months/year.

Rusuro's Kaolin project will be fired up as well @ KM88.

Regardless, both Crystallex and Gold Reserve value is more than Friday's close prices, respectively.

Have a good week all.

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