Crystallex (AMEX:KRY)
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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/