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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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Message: Interesting Information in GRZ Financials

Interesting Information in GRZ Financials

posted on Apr 03, 2009 08:45AM

Hi all, i am a long time lurker and new member.

I decided to take the plunge and add to the board, since it was surprising to me that no one had picked up that GRZ released their quarterly results this week (March 31st).

As a longtime KRY shareholder, there was some informaion in the GRZ MD&A that concerns me when it comes to my investment. Some of the comments i found that jumped out at me:

1) Page 2- they acknowledge that new mining laws are being discussed and the mining rules are in transition.

2) Page 3 - GRZ has been in contact with MinAmb, MIBAM and government officials since the revocation notice in March. The discussions are consistent with the proposed changes to the mining law addressed in publicly in the past 12 months, even though the final provisions that may be enacted are unclear.

3) Page 3 - their belief through the new Mining Law is the state mining company may seek to participate through a state mining company or joint venture.

4) Page 3 - the government will pay pro rata based on their ownership related capital costs.

5) Page 3 - GOVERNMENT BELIEVES BRISAS AND LAS CRISTINAS should be combined into a single project which would benefit all.


6) Page 4 - Company believes if the government goes the joint venture route, they can partner up the the Venezuelan government in a joint venture Las Brisas Mine, or a joint venture Las Brisas/Crystallex mine.

The MD&A document is posted on the sedar.com website on March 31, 2009. I think everyone should have a read.

I think #5 stands out at me the most, since KRY management has denied in the past that this is possible.

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