Crystallex Announces CVG Approval of Las Cristinas Feasibility Study
09 March 2004 - 6:15AM
PR Newswire (US)
Crystallex Announces CVG Approval of Las Cristinas Feasibility
Study Company now anticipates the construction phase of the project
TORONTO, March 8 /PRNewswire/ -- Crystallex International
Corporation (Amex: KRY; TSX) announced today the approval bythe
Corporacion Venezolana de Guayana ("CVG") of Crystallex's full
Feasibility Study for the development of the Las Cristinas mining
properties in Bolivar State, Venezuela. On September 17, 2002,
Crystallex entered into a mining operation agreement with the CVG
which granted to Crystallex the exclusive right to fully develop
and exploit the significant gold reserves and resources at Las
Cristinas. Mine Development Associates of Reno, Nevada, estimated
in the Feasibility Study that proven and probable reserves amounted
to approximately 10.2 million ounces (246 million tonnes at 1.29
g/t) based on measured and indicated resources of some 15.3 million
ounces (439 million tonnes at 1.09 g/t) inclusive of the 10.2
million ounces of reserves, while inferred resources were estimated
at approximately 6.1 million ounces (208 million tonnes @ 0.91
g/t). The full Feasibility Study, prepared by SNC-Lavalin Engineers
& Constructors, was delivered to the CVG on September 10, 2003
by Crystallex, and since thattime, Crystallex has worked closely
with the CVG to obtain final approval. The Feasibility Study
addresses and confirms the economic and technical viability of the
Las Cristinas Project and provides the foundation for construction
and operating plans. "The approval by the CVG is a major milestone
in the development of the Las Cristinas properties," said Todd
Bruce, President and CEO of Crystallex. "We expect that the formal
granting of our Engineering, Procurement and Construction
Management ("EPCM") contract for Cristinas will very quickly follow
the CVG approval. Our Chief Operating Officer, Dr. Ken Thomas, and
his team have been working with EPCM candidates for several months
in anticipation of this approval to ensure that we proceed as
quicklyas possible." Mr. Bruce also acknowledged the dedicated
efforts of CVG representatives in finalizing the approval. "We
enjoy an excellent working relationship with our partner, the CVG,
and this relationship will stand us in good stead as we proceed
through the permitting and construction stages of the project. We
look forward to bringing long awaited investment and employment
opportunities to the people of Bolivar State and Venezuela. I would
like to especially acknowledge the leadership of General Francisco
Rangel Gomez throughout the entire process and thank John Madero,
Vice President of Mining, and the CVG senior staff for their
professionalism, support and guidance during this critical period."
General Rangel Gomez confirmed the approval andcommented: "The CVG
is very pleased to announce the approval of the Crystallex
Feasibility Study for the Las Cristinas Project. We look forward
with great anticipation to the start of gold production in early
2006 and all of the associated benefits that will be generated for
the local community, Bolivar State and the Republic through the
jobs created, social benefits and royalties and taxes paid to the
CVG and the Republic." The Feasibility Study clearly distinguishes
Las Cristinas as a premier gold deposit that can be economically
developed and operated by conventional mining and gold processing
technology. The reserves delineated by the Feasibility Study
transform Crystallex into the fifth largest North American based
gold company in terms of reserves. Highlights of the approved
Feasibility Study include: * Proven & Probable Reserves: 246
million tonnes at 1.29 g/t (10.2 million ounces) using a gold price
of US$325/oz * Measured & Indicated Resources including
reserves: 439 million tonnes at 1.09 g/t (15.3 million ounces) *
Additional Inferred Resources: 208 million tonnes @ 0.91 g/t (6.1
million ounces) * Low Strip Ratio of 1.34:1 (Less than 1:1 in the
first five years) * Expected metallurgical recovery of 89% *
Deposit open at depth * Other mineralized zones not yet drilled
Reserves and Resources calculated in accordance with Canadian NI
43-101 Dr. Thomas added: "Once we have awarded the EPCM contract,
Crystallex intends to move forward quickly to get final approval
for our Environmental Impact Study ("EIS") report and, in
conjunction with the CVG, to secure the Land Use Permit and the
Permit to Impact the Environment. The Company has also initiated an
internal study to investigate higher mining rate alternatives and
possible expansion scenarios to the 20,000 tonnes per day operation
outlined in the Feasibility Study. Crystallex will also shortly
begin a drill program to test other mineralized zones within the
Las Cristinas properties, including the zone below the US$325 gold
pit shell as described in the Feasibility Study. The intention of
the latter program is for in-fill drilling to increase the density
of drilling in this area in order to upgrade current inferred
resources into measured and indicated resources which in turn can
be converted into proven and probable reserves." Dr. Thomas further
confirmed that Crystallex had completed and exceeded its
contractual obligations to advance social programs with new water
treatment facilities, sewerage systems, medical clinic expansions,
housing and road improvements having been provided for the local
community. About Crystallex Crystallex International Corporation is
a Canadian based gold producer with significant operations and
exploration properties in Venezuela. The Company's principal asset
is the Las Cristinas property in Bolivar State which is currently
under development. Other key assets include the Tomi Mine, the La
Victoria Mine and the Revemin Mill. Crystallex shares trade on the
TSX and AMEX Exchanges. NOTE: This may include certain
"forward-looking statements" within the meaning of the United
States Securities Exchange Act of 1934, as amended. All statements,
other than statements of historical fact, included in this
presentation, including, without limitation, statements regarding
potential mineralization and reserves, exploration results, and
future plans and objectives of Crystallex, are forward-looking
statements that involve various risks and uncertainties. There can
be no assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company's expectations
are disclosed under the heading "Risk Factors" and elsewhere in
documents, including but not limited to its annual information form
("AIF") and its annual report on Form 20-F, filed from time to time
with the Canadian provincial securities regulators, the United
States Securities and Exchange Commission ("SEC"), and other
regulatory authorities. Please Note: The estimates described in
this study and herein qualifies as reserves in accordance with
Canadian National Instrument 43-101. However, they do not
necessarily qualify as reserves for United States reporting
purposes. Therefore, readers should not assume that the information
provided in the study and in this release is acceptable for United
States reporting purposes, Furthermore, readers should note that
measured and indicated resources presented herein would not be
acceptable for United States reporting purposes. The Toronto Stock
Exchange has not reviewed this release and does not accept
responsibility for theadequacy or accuracy of this news release.
DATASOURCE: Crystallex International Corporation CONTACT: Investor
Relations, A. Richard Marshall, VP of Crystallex International
Corporation, +1-800-738-1577, or Web site:
http://www.crystallex.com/
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