Nov 17 2009 Vheadline:

VHeadline Venezuela News reports: According to a report in today's edition of
the south-east Venezuela regional newspaper Correo del Coroni, Spokane-USA-based
Gold Reserve, despite having announced that it is to launch international
arbitration against the Venezuelan government over losing its concession to Las
Brisas del Cuyuni goldmine, is seeking to partner with Russian-owned,
Vancouver-based Rusoro Mining "to strengthen and expand its participation in
Venezuela's gold mining sector."

Citing correspondence, the newspaper says the "association" between between Gold
Reserve and Rusoro would establish a sort of "mixed enterprise" relationship to
increase its ability to attract shareholder investment.

While Gold Reserve has lost rights to the Las Brisas del Cuyuni project after a
20-year concession lapsed, Rusoro Mining is a major employer through its
subsidiary PMG with 50% of the La Camorra and Isidora Mines with the Venezuelan
state in the 50/50 socialist Venrus CA joint venture.
Venezuelan Guayana Corporation (CVG) gold mining subsidiary, CVG-Minerven legal
counsel Emir Rojas says a Letter of Intent between Gold Reserve and Rusoro is
legally a transaction between two private companies and that no objection could
be raised. However, problems could arise if the proposals included the Choco 5
concession that CVG Minerven subleased to Gold Reserve since any such
arrangement would necessarily have to be subject to review by both CVG-Minerven
and the Ministry of Basic Industries & Mining, and Basic, or face the prospect
of an administrative process.

Rojas explains that it is often the case that such associations lend themselves
to speculation and even fraud when consolidated companies trade shares on the
"half truth" that that they have a number of mining properties in Venezuela.

"Generally, it is more PR than anything else," says Rojas who says people should
inform themselves before investing in mining company shares because, although
they may be perfect business opportunities and mean jobs for the people in the
south of Bolivar State, everything has to be done within the current legal
framework if companies are not later to be subject to investigations and
sanctions.