Financials are sound and GRZ is cutting their burn rate as much as possible while keeping all options open.

Available here (select the format you want for Form 6-K for 08/12/08)

http://phoenix.corporate-ir.net/phoe...

Operations Overview on page 11..

In May 2008, the Company received notification from the Venezuelan Ministry of Environment (“MinAmb”) of its decision to revoke the 2007 Authorization for the Affectation of Natural Resources for the Construction of Infrastructure and Services Phase of the Company’s Brisas gold and copper project. (the “Authorization to Affect”). The notice referenced among other things, the existence of environmental degradation and affectation on the Brisas property, the presence of a large number of miners on the Brisas property and Presidential Decree No. 4633 dated June 26, 2006, which declared an emergency in certain areas of the state of Bolivar including within the Imataca Forest Reserve as the primary reasons for their decision.

The notification does not 1) cite any specific criticism of the Brisas Project, 2) indicate that there is any opposition to mining in the Imataca, 3) revoke the previously approved ESIA or, 4) preclude future issuance of Authorizations to Affect.

Venezuelan legal counsel has advised Management that the revocation of the Authorization to Affect is groundless and legally unsupported. 1) Minor environmental disturbances on the property resulting from mining activities prior to the Company acquiring the property in 1992 have already been addressed by the Company and are clearly documented in our operating plan, which the Ministry of Basic Industries and Mines (“MIBAM”) previously approved, and are subject to future reclamation, as outlined in our Environmental and Social Impact Study (“ESIA”), previously approved by MinAmb prior to the issuance of the Authorization to Affect. 2) There are no small or illegal miners on the Brisas property, and 3) Presidential Decree No. 4633 was issued June 26, 2006. On March 27, 2007 MinAmb issued the Authorization to Affect to the Company. Presidential Decree No. 4633 expired on June 26, 2007. Since the issuance of Presidential Decree No. 4633, Brisas has received a number of other exploration permits from MinAmb in addition to the Authorization to Affect. The Km88 area in which Brisas is located was approved for mining prior to the Company acquiring Brisas and that approval was reaffirmed in 2004 by Presidential Decree No. 3110.

Further, the 2007 Authorization to Affect was granted to our Venezuelan subsidiary by MinAmb, a competent authority, following the corresponding legal procedure, and in accordance with applicable laws and regulations. At the time the Authorization to Affect was issued, there was no legal norm prohibiting MinAmb from authorizing performance of mining activities in the area of the Brisas Project.

In May 2008, the Company filed an appeal with the Minster of MinAmb which outlined the factual flaws referenced in the revocation and requested that the Minister reinstate the Company’s Permit to Affect. The MinAmb has ninety working days to respond to our appeal.

We believe the revocation by MinAmb not only conflicts with the rights granted to the Company’s Venezuelan subsidiary under the previously issued Authorization to Affect, it conflicts with what we believe to be the Government’s desire to diminish and contain the irrational and environmentally damaging mining activities of the small and/or illegal miners in nearby areas as well as the interests of the 21 local communities who have publically expressed their full support of the Brisas Project, which adheres to the technical, social and environmental standards of the Equator Principles.

Support for mining in the Km88 area is clearly evidenced by, among other things, the approval of the Brisas operating plan in 2003 by the Ministry of Energy and Mines (the predecessor to the current MIBAM) Presidential Decree No. 3110 issued in 2004 to regulate the Imataca Forest Reserve, approval by MinAmb in early 2007 of the Environmental and Social Impact Study for the Construction of Infrastructure and for the Exploitation and Processing of Gold and Copper Ore (the “ESIA”), issuance of the Authorization for the Affectation of Natural Resources for the Construction of Infrastructure and Services Phase of Brisas (the “Authorization to Affect”) by MinAmb in March 2007, receipt of accreditation letters of technical compliance for all of the properties that comprise Brisas from MIBAM in the third quarter of 2007 and issuance, since 2004, of a number of authorizations and other acts by MinAmb and MIBAM relating to mining exploration or exploitation in the Imataca to the Company and others.

Since we received the revocation notice in May 2008 we have had several meetings with members of MinAmb, MIBAM and other Government officials. None of these officials have represented that the Government intends to create a mining moratorium in the Imataca Forest Reserve."