Government declared extinct Brisas mining concession
Written by Editor
Monday, May 25, 2009
Venezuela denied a request by a subsidiary of Canadian mining Gold Reserve to extend a grant in the Brisas gold project, informed the Ministry of Basic Industries and Mining through the Official Gazette.

The resolution declared extinct on the granting mineral rights in the barrage curassows for exploration and exploitation of gold and diamonds in the south.


Chavez, who drives for two years a wave of nationalizations to give greater weight to financial and productive public sector, seeking to draw more revenue from the burgeoning gold industry to confront the difficult financial situation of the country by low oil prices.

The submission of Gold Reserve to extend its mining rights in the flurry curassows for the exploration and gold and diamond losers on July 20, 2008, was rejected because "the dealer is not reliable" for the country, reported the Gazette Official circulated on Monday.

"This should now move to joint venture with majority state, as sought in the sector," said a spokesman for the Ministry of Basic Industries and Mining.

The Brisas project, which includes several concessions in the mining belt is known as "Kilometer 88, south of the Orinoco River and adjacent to the Las Cristinas gold project.

In a report on Brisas, developed in 2008 by mining consultants Pincock Allen & Holt for Gold Reserve, specifies that the curassows was acquired by the company in 1999, along with other adjacent properties, as an area for disposal of waste mining activity.

The resolution warns that the measure does not relieve the licensee of the payment of amounts due in respect of special benefits, fines, taxes and interest arrears.

A representative of Gold Reserve, firm based in Washington but whose shares are listed on the Canadian stock market, chose not to comment on information.







Mining dispute

Last year, the Ministry of Basic Industries and Mining began negotiating with the mining rusocanadiense Rusoro the establishment of several joint ventures with Venezuela to exploit Brisas and Las Cristinas, two of the largest gold deposits of non-developed world.

Gold, unlike other commodities, tends to benefit from economic uncertainty, as seen by investors as a safe haven

Gold Reserve warned last month that could bring an arbitration against Venezuela to block the permit to operate Brisas, seeking a "fair" for their investments estimated could total about 5,000 million dollars.

The company says it obtained the rights on the site in 1992 by purchasing the Company's Brisas gold Cuyuní, but was never able to exploit a large scale because this area does not give all the administrative and environmental permits required.

Like Brisas, the massive Las Cristinas gold deposit, the operating rights are currently owned by Crystallex of Canada, is being held due to legal disputes and the lack of Venezuelan governments for decades. Agencies