Venezuela and the future of gold
Saturday, September 19th, 2009

September 19, 2009, 01:03 Saborit By Randy Mora (*)

Caracas, (Prensa Latina) President of the state-owned gold MINERVEN CVG in
Venezuela, Luis Herrera, asserts that the coming years will be opportunity for
that mineral in the world.

According to Herrera, "we believe that open the compass investor nations
should be the strategic form, especially those that are in an alliance against
U.S. imperialism."

He stressed that apart from the agreements signed members of the Bolivarian
Alliance for the Peoples of Our America (ALBA) and the Russians "now we will
sign agreements with some African countries like South Africa, Ghana and Gabon.

"With representatives of those countries we have been talking and coming soon a
group of technicians to visit CVG MINERVEN and share with us," he said.

In late September, held at Isla Margarita, the Second Summit of South
American-African and some representatives come from these countries to visit
MINERVEN CVG. "They're waiting. There are already some companies interested in
partnering Gabon MINERVEN and CVG will be here on that date, and also South
Africa with which we are running a meeting and excited."

To counteract smuggling

"We hope to have collection centers allow us to stop smuggling or at least
neutralize it. We're going from Santa Elena to Guaneamo."

This is part of a nationwide policy. We are in gold at the moment, but also the
agreement between Cuba and Venezuela is for diamonds in St. Helena.

What are collection centers?

Henderson defined the collection centers as laboratories and reception areas and
marketing of gold.

It is possible that if we produce 10 kilos, will be leaking out as many green
roads, he noted.

If we draw a mineral policy and receipt of purchase, we can at least stop the
flow, but you have to give incentive to people, he added.

For the new steps they intend to Cuba in the area of the diamond said "we hope
to sign an agreement to make a binational company for the recovery of diamonds.

This company has tin and a processing plant for diamond material in St. Helena,
both towns in Bolivar state, those are the two projects, drilling more than 47
thousand meters to assess the actual amount of gold reserves in gold area.

He said that this entity between two countries will begin before the end of
2009.

In his view "these projects are on the increase with the Cuban comrades and on
track".

The enemies whenever they can attack us and we say, "something is hurting,
still."

In relation to the estimated reserves of diamonds, said the National Institute
of Geology and Mines of Venezuela and the Cuban estimate in the mantle
kimberlite Guaneamo (Bolivar state), some 40 million tons of kimberlite to a
tenor of 1.5 carats per tonne.

"Some experts valued at four billion dollars for a price of $ 100 a carat," he
revealed.

About CVG MINERVEN

It was established as a joint venture on February 4, 1970 by domestic private
investors (Corporacion Venezolana de Fomento) and foreigners.

Currently, its shares belong to the Venezuelan state to 100 percent (93.52
percent of Minerva and the rest CVG CVG FERROMINERA).

Treatment Plant and well Caratal Colombia were built between 1973 and 1980, the
second with a depth of 479 meters and seven operational levels of production.

This company took over the Plant operations Peru since 1994 and won well mil
installed capacity of 150 tons / day (700 tonnes / day Caratal and 450 t / day
in Peru).

The entity achieved on 1 October 2008, the reversion to the Venezuelan state of
the gold processing plant Revemin (moving thousand 500 tons / day of primary
material of mine).

Production and investment

According to Herrera Venezuelan company produces between 450 to 500 kilos of
gold per month and aspires to reach the eight tons of ore in 2009 while last
year reached 4, 24 tons.

He noted that this represents for this state agency more or less an average
yield between 15 and 20 kilos per day.

According to the engineer, the major investments before the end of this year is
Caratal modernize the plant, "we want to take a processing capacity of 700
thousand 200 tons of primary material of mine."

Similarly, he added, what we do on the ground Peru, which will expand its
potential of 450 to 750 tons per day.

They both post a module to use activated carbon to recover gold, as the
efficiency of these is about 84 percent because we employ the method of
precipitation with zinc, said ..

Instead, he emphasized, the Revemin has a 90 percent recovery because the
recovery of gold is activated charcoal.

He said that the other investments that are intended to be in the mines, first
in the Sosa Méndez, which aim to deepen 300 to about 500 or 600 meters.

Also communicate the proposed fifth level of the mine Colombia with the level
six of the Sosa Méndez, "for which we will rely on an agreement with Cuba last
August," he noted.

Regarding the amount allocated for such investments, argued that "the exact
figure not known, but should be in the order of about 800 million dollars,
including all investments for plants and mines.

Regarding the time necessary to realize each of these investment projects, said
"we intend to be moving in a year and raising productivity in that sense."

Production cost per ounce of gold

"The company's operating cost is now $ 700 per ounce of gold, and when we
include the social costs and reach between 900 thousand dollars. We are as
stated in the line."

However, he clarified, we should understand the connection that we are a
socialist enterprise. Or is socialist in word or deed. "

"We have about two thousand direct jobs for some plants and mines that could
handle a thousand workers," he said.

"But for us but that is not an investment loss (social) in a number of persons
likely to be unemployed and have them working in the company," he said.

Meant as an essential investment in social grants, health care and education,
beyond the increased costs.

"We hope that with these extensions of the processing capacity in plants can
increase productivity and lower costs," he said.

When we make a comparison between private companies and CVG MINERVEN always have
that in mind, he added.

If it were a private company I can assure you that a thousand people would be
unemployed roaming the streets, he said.

"However, as we are a socialist state entity must contribute the most to reduce
the social problem," he said.

(*) The author is a correspondent for Prensa Latina in Venezuela.


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