TORONTO (miningweekly.com) – Embattled junior Crystallex International is holding negotiations on potential deals that could help its stalled Las Cristinas project, in Venezuela, move forward, the firm reported on Wednesday.

“Crystallex is actively pursuing a resolution to the Las Cristinas permitting dispute and believes that a responsible large scale mining operation at Las Cristinas will benefit Venezuela, the environment, the local communities, and all the stakeholders, it said in a statement.

“To that end, the company is presently in discussions regarding potential transactions and partnerships that, if successful, should facilitate the successful advancement of the Las Cristinas project.

If there is no successful transaction or settlement with the government, Crystallex said it is prepared to file for international arbitration.

Las Cristinas, which is believed to be one of South America's biggest untapped gold deposits, has estimated proven and probable reserves (based on a $550/oz gold price assumption) of 16,86-million ounces of gold, according to a September 2007 update by Crystallex.

Crystallex has been trying for years to get permission to build the mine, but was toldin 2008 that a key permit would be denied.

The company has tried to negotiation a resolution to the situation, and filed a dispute later that year with the Venezuelan government, under an investment treaty between Canada and Venezuela.