Crystallex International

Las Brisas gold project is a year paralyzed

October 22, 2010, 2:02 a.m. | Gold Reserve demanded that the Venezuelan State to the ICSID for U.S. $ 1.928 million according to government would be ahead of the mining company to avoid arbitration tribunal Las Cristinas and Las Brisas have been coveted by larger companies in the world Las Brisas is one of the largest gold and copper deposits undeveloped in the world The price of gold has reached record levels, currently an ounce is valued at $ 1,325 after the cessation

projects illegal gold miners strike zone Carmen Carrillo

Special World

One year after the end of the Las Brisas project, which administers the Canadian company Gold Reserve, President Hugo Chavez said during his tour of Asia and Europe, which will restart in peremptory terms the gold mining operation at Las Brisas and Las Cristinas.

Since October last year, the company Minerven custody and mine facilities in Las Claritas Gold Reserve sought to develop the project through Las Brisas. The operation was impossible, since the Ministry of Environment never gave permission to start the production phase of the project.

Indeed, the project Las Brisas and Las Cristinas are economically inactive by now because the Venezuelan government voided the trade and commercial relations holding in the first case, Gold Reserve and in the second, Crystallex, also from Canada.

Historically, transnational economic groups have shown interest in developing these "pleasures" gold, but given the national government's relations with Russia and China, are these nations that have the first choice for strategic partnerships, as recently announced by the Chief State, from Belarus.

Demand for Gold Reserve

Since 2003, the Canadian company had shown interest in exploiting the Cuyuní Brisas and Choco 5, 500 hectares, located in the concession of Las Cristinas.

To be evicted by the state, Gold Reserve said in a statement that will require at least U.S. $ 1.928 million to the Government of Venezuela for the nationalization of gold projects Brisas and Choco 5 for losses registered by September 24 this year and investments made so far.

Only in the Las Brisas project argues that the firm invested about $ 300 million. After the expropriation, the mining company in 2009 called for arbitration before the International Centre for Settlement of Investment Disputes (ICSID), World Bank, for violations of three provisions of the Bilateral Investment Treaty Canada-Venezuela.

The company will present new written during 2011 and the hearing of the case is scheduled for 5 December next year.

However, it was learned unofficially that the national government in talks with representatives of Gold Reserve with the intention of reaching a settlement without resorting to a court of arbitration, which is what you are requesting Gold Reserve as compensation the Venezuelan State.

Gold and copper

The proposed Las Brisas is one of the largest copper and gold deposits still undeveloped in the world, with reserves of 10.2 million ounces (oz) of gold and 1,400 million pounds (lb) of copper.

According to feasibility studies, this exploitation is a huge open pit mine containing proven and probable reserves of approximately 9.2 million ounces of gold and 544,000 tonnes of copper in 414 million tonnes of ore with grades of 0, 69g / t gold and 0.13% copper.

The geological model was based on a cost of digging ore tonne $ 2.76 / t, with a gold price of $ 350/oz and a copper price of $ 0.90 / lb.

At this time, an ounce of gold traded above $ 1,325.62.

Initial capital costs were estimated at 552 million dollars.

The project anticipated processing of 70,000 tpd of ore, producing an annual average of 487,000 ounces of gold and 29,000 tonnes of copper over a mine life estimated at 16 years. The feasibility supposed economic level base using $ 400/oz gold and $ 1.00 per pound of copper.

At these prices, direct operational costs of production are estimated at $ 153/oz gold and total gold at $ 262/oz. This accounts for the economic interest of the copper production.

But also, Gold Reserve met the study of social and environmental impact to meet the requirements of Venezuela.

In the application phase for the "authorization to affect natural resources, which must be granted by the Ministry of Environment and Natural Resources of Venezuela, before it can continue the construction complete, the project stalled.

It was felt that permits should have been approved in 2005.

Case of Las Cristinas

And Brisas del Cuyuni, driving Gold Reserve award was within the Las Cristinas mining project, one of the richest in Latin America, the other part of this site is still in the hands of the Canadian transnational Crystallex, which although has not left the grant, nor has permission to exploit it.

All that area of Las Cristinas at Km 88, has been invaded by so-called "prospectors" and in this sector, is currently active Caura Plan, through which the Government, with the support of the Armed Forces National, a census and prepare actions to evict all those small producers.

Mine location

The Web portal company Crystallex, notes that Las Cristinas is one of the largest gold deposits in South America, located in southeastern Venezuela, on kilometer 88 of the state of Bolivar.

Is estimated to contain 323 million tonnes of ore, of which the electrical conductor and four deaths have 286 million tonnes at a grade of 1.13 g / t gold and 0.14% copper.

For its part, the deposits Inns and Sofia have 37.2 million tonnes grading at 1.07 g / t gold and 0.35% copper.

http://www.elmundo.com.ve/Default.aspx?id_portal=1&id_page=18&Id_Noticia=34391