I have read much of the confised mess of words that has come out of Venezuela and passes for "news" on the subject of gold mining, and one thing stands out. The people doing this reporting and apparently many of those in positions of power have no concept of gold mining in a low grade mine, or on how to build and run a large mine.

Without exception, Hugo's past nationalisations have been of completed, working enterprises. He has not attempted to take over an undeveloped resource and build it from scratch. Considering their "expertise" at what should be simple administrative tasks like issuing permits it's pretty hard to envisage who they would plan, build and operate any significant mine starting from scratch.

Even the KRY deal was odd in that the CVG were using KRY as a "sub-contractor" but KRY was putting up all the money and expertise to build the mine. GRZ, with a concession was in a more conventional position, but if there is a move to convert Brisas into a similar arrangement to Las Cristinas, then who puts up the capital to build the mine?

I assume that the detailed drill data and engineering already performed are the property of GRZ. If GRZ is not happy with any offered deal can they be forced to hand over this information? It has cost $300 million to get it to this stage, and obviously if the CVG or anyone else had to start from scratch it would cost at least as much, if not more, to get back to the same stage that GRZ are now at. It would also set back any mine building by years.

So what is gained by this latest roadblock? Nothing in my view for either GRZ, KRY, CVG or the government. It's a loss all round and if anyone really thinks that "small miners" can operate a 70,000 tonne per day operation producing 1,250 ounces per day using a few back hoes and picks and shovels then they have rocks in their heads! It takes over a billion dollars and the latest mining methods to do that and even then it isn't without risk.

Few governments anywhere would put down a billion dollars an operation as risky and difficult as a low grade gold mine. Maybe the Venezuelan's would try, but if they do I will bet they will still be discussing it in a committee 10 years on and there won't be anything at LB and LC but a swarm of illegal miners picking up a few ounces of surface placer ore and destroying every aspect of the local environment while they do it.....