Initial impression is very positive.

Robert Fungs presentation at the end of the AGM answered many questions and I suggest if you haven't done so, check the archive on KRY's website.

You may have heard me ask the question about production capacity and from the comments from Robert Fung and talking with Richard Marshall the optimum rate would be in the range 60,000 tonnes / day. No one was willing to commit to specific figures as they are releasing a new prospectus for the recent PP soon.

Myself, EZ, Newfiebullet, and Teutracker had an informative lunch with Richard Marshall and Andrea Boltz after the AGM. My main impressions from this discussion were;

1. The Chinese have been very careful to ensure that the Venezuelans were receptive to the JV. This involved consultations at the Sino-Ven government level and CRRC-CVG level and response from the Vens have been "very favourable", enought that CRRC was confident enough to take the next step and entering into negotations with KRY. This tells me that the Chinese were confident that the permit and other outstanding issues would be resolved quickly and under favourable terms.

2. Production "optimization" is been planned from the outset. The project will start on the basis of the original 20,000 tonne / day feasability study and then be ramped up the the "optimized" level based on a 20 year mine lifespan and 22+ million oz resources (@$800 USD / oz)

3. My impression is the CRRC has done a massive amount of DD on this project in the last 9 months. We may not be able to get specific answers to our concerns but I'm sure the Chinese have. They are assuming the risk and putting up the money.

Personally, I think this is a good deal.

Kry contributes the MOC, current infrastructure, data and other intellectual property.

CRRC bring the political weight and all the development capital needed (to paraphrase R. Fung's words "whatever it takes, CRRC and China Railway will provide") and will give KRY a construction guarantee with backed up with a substantial penalty clause.

As a result we get 33% of a much larger pie, much larger because of the production optimization and with less debt and/or share dilution.

I'm sure that EZ and Newfiebullet will share their opinions soon. Teutracker, well we will hear from him when the permit is announced!