Hey guys-

Yes, I'm still here along with the rest of our hard core family longs. 5-6 years now. I'm one of our fellow lurkers in the background. Still dedicated, but busy trying to make a buck the hard way. I still read the boards regularly, but for my sanity, I sway my mind into another direction to avoid the depression.

Went to look at Kitco and this article was posted. I don't think it was posted but sorry for the duplication if I missed the post.

Jeff

POLITICAL ECONOMY

Venezuela finally, officially denies Las Cristinas gold mine permit

After nearly three years of stalling, state-owned CVG has finally officially denied the Las Cristinas gold project in Venezuela.

Posted: Monday , 07 Feb 2011

RENO, NV -

After years of fits, starts and foot dragging, the Venezuelan government has finally officially terminated Crystallex's Las Cristinas gold project.

Toronto-based Crystallex (TSX, NYSE Amex: KRY) announced Sunday that it had received a letter from Corporacion Venezolana de Guyana stating that the company's Las Cristinas Mine Operating Contract (MOC) had been "unilaterally terminated."

Ironically, the resolution cites, as basis for the termination of the contract, Crystallex's lack of activity to progress the Las Cristinas Project for more than one year and ..."for reasons of opportunity and convenience."

However, Crystallex says it has "fully complied with all its obligations under the MOC and has advanced Las Cristinas to a shovel-ready state while awaiting the issuance of the Authorization to Affect Natural Resources...from the Ministry of Environmental and Natural Resources."

The company said it is "considering all steps necessary to protect its investment on behalf of all its stakeholders including the filing of the International Arbitration claim outlined in a Notification of Dispute served by the company on the Venezuelan Government in November 2008."

Crystallex also faces a class action lawsuit from shareholders who complained the company's former officers allegedly made several statements between July, 28, 2005, and April 30, 2008, indicating the issuance of the required government permit for Las Cristinas was imminent. The lawsuit claims the permit was actually denied by the governor on April 30, 2008.

In June 2010 Crystallex had offered to cede majority control of the project to a subsidiary of China Railway Engineering, China Railway Resources (CRR). Crystallex had hoped CRR would unblock the stalled environmental permitting for Las Cristinas and provide the necessary capital to develop the project to commercialized production.

While mining analysts had considered Las Cristinas' 27-million ounce resource "a world-class asset," calling it tragedy that it had never got off the ground.

Las Cristinas planned to produce 290,000 to 460,000 ounces of gold annually.

The Venezuelan Government has managed to frustrate or chase away at least three U.S. and Canadian-owned mining projects or operations in the lucrative Kilometer 88 Mining District in southern Venezuela. A fed-up Hecla Mining sold its Venezuelan operation and properties to Rusoro Mining in June 2008.

Last September Spokane-based Gold Reserve filed a $1.9 billion claim with the World Bank's International Centre for the Settlement of Investment Disputes against the Administration of President Hugo Chavez after the government seized its Las Brisas gold project in 2009.

Metatags: Las Cristinas, Crystallex, Las Cristinas permitting, Kilometer 88, Venezuelan gold mining, Chavez Administration expropriation