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Uncertainty continues to surround Crystallex

Peter Koven, Financial Post

Published: Thursday, November 06, 2008

The uncertainty continued yesterday in Venezuela for Crystallex International Corp. One day after news reports suggested the government plans to "take over" the company's Las Cristinas gold project, a new report said Venezuela wants to develop Las Cristinas jointly with Rusoro Mining Ltd., and thus replace Crystallex. Later in the day, that story was allegedly denied by the mining minister. Crystallex and Rusoro both said they knew nothing about the reports.

Doug Belanger, president of Gold Reserve Inc., said in an interview that Venezuelan officials recently did an inventory of Las Cristinas, which is a possible precursor to taking over the project. "They asked to stay at our property [next to Las Cristinas], because I guess they felt more comfortable with us," he said.

He added that Crystallex has a clause in its mining contract in which it gave up the right to international arbitration over Las Cristinas.

Shares of Crystallex and Gold Reserve have both collapsed this year as investors doubt that they will ever develop their Venezuelan projects.