Whilst absorbing the latest news, views and assorted posts I summized that:

The chances of KRY finding any feasible way to work profitably within the Chavez revolutionary Government and administration: None.

The chances of permit to effect: Slim to none.

The chances of Chavez leaving office (this includes feet first) before KRY goes south: Slim to not so slim.

The chances of KRY reducing the burn rate before a deal, BK or arbitration: Very slim.

The chances of KRY finding a buyer of the mining contract: Slim.

The chances of KRY finding funding to arbitrate and satisfy the note holders: Slim to none.

The chances of Fung making a deal above $1 US: Slim.

The chances of shareholders approval of a $1 deal: Slim to none.

The chances of Fung surprising me: All I can do is hope.

(I didn't use % because it is supposed to add up to 100% and that would be bad)

If you look at all the variables as time (Money) grows short, the number of possible outcomes are reduced.

My situation: At this price my KRY stock is better used as a future loss against taxed gains so I would like to see at least a 3 to 5 times increase in the PPS or at least the hope of some future earnings in a structured deal. So I am long until we win or until I am forced to sell.

These are my two equally inplausible scenarios (ha, ha!):

#1) A regime change could buy us time and create a situation where we could obtain approvals.

If I were asked to say what I believe to be the one thing that would give us immediate hope- Chavez gone and new bureaucrats in charge. Chances of chavez removal from office or death are fair if you take into account that he uses cocaine, he is in his fifties, there is a lot of despondency by civilians over the Venezuelan economic situation and there are a lot of people who just do not like him. I think if he just disapeared nobody would notice at first. Unfortunately, any wanna be politician could just step in to replace him. Even if we got pro-business moderates it would take years to unwind all Chavez's damage. But it would be easy to make leaps off the bottom pretty quick for anyone willing to bring in foreign investment and put people to work. The hard line socialist policies would have to end or we still would have trouble obtaining further financing. Why does he have to go? Chavez would nationalize the mine within a few years. Chavez controls the exchange rate, gold sales, legislators, mayors, ministers etc. and has his own police force to enforce his whims so just forget doing business under Chavez.

#2) I would take money from just about anyone right now and the Chinese have American Dollars to burn.

But just because there is a Chinese/Venezuelan oil deal this is not mean the Chinese are ready to buy a gold mine contract given the current situation. But of all the nations on the planet that are truly financially and technologically prepared to mine Las Cristinas, the Chinese might be the only one able to deal with Chavez. So all you guys on the Chinese wagon- I agree. If the Chinese can't come to reasonable terms on a JV, why wouldn't they make an outright offer for the KRY contract, it's feasible. This might chafe Chavez's hide but he will need the Chinese to help in many other areas, so he will just grin and bear it. The Chinese would make a great deal with KRY (not for us but for themselves). I think the shareholders would be happy if we got more than a dollar. As far as the exchange rules for gold, oil and the Bolivar go, the Chinese are working on a new currency and Chavez would have to deal with a more equitable exchange rate, the Chinese would prosper with the contract and the equipment. The hope of anyone just financing KRY through an arbitration seems improbable to me on the risk/reward scale but I guess someone might do it if they could use the mills at a different project? But it is still a lot of money.

I am convinced from all I have seen the "real" Chavez mining plan is to "nationalize" the mine, promote a few grunts, grab some quick technical advise from his buddies, and just start the peasants to digging. He does not care about the assays, KRY's mining plan, the environment or how effective the process is, or if anyone dies, just as long as he controls the process (and the wealth).

In the meantime don't expect the burn rate to diminish much.

In conclusion I like everyones imput here and I just wanted to tell you what I think about all this. Good luck to Mr Fung and all of us misguided peons. We all deserve a palatable conclusion to this investment.