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September 6, 2006
The reason for KRY and GRZ stock soaring, Wed., Sept. 6, 2006, 2:15 PM
I have finally discovered the reason why the share prices of Crystallex and Gold Reserve have exploded to the upside. It happened right after these articles appeared in Spanish in the Venezuelan media on August 30 and Sept 1.
The article talks of discussions between the Ambassador of Canada in Venezuela and diplomats and government people there. Apparently in those discussions, it was reported that, according to Hugo Chavez, the Bolivar state in which the Crystallex and Gold Reserves are located will be named as the Mining Capital of Venezuela.
That would be somewhat difficult without Las Cristinas (Crystallex) and the Brisas project of Canadian miner Gold Reserve (GRZ) being in operation, as they are near the mining town of Las Claritas in Bolivar and the major resource properties there.
Yes, there is local opposition from ardent environmentalists, and yes, there is a plethora of politically inspired misinformation coming from Washington. But these projects will go forward, and Venezuela will become one of the great mining countries of the world.
Mark these words.
Source: DIARIO DE GUAYANA Headline: Mibam will expose kindness of the Mining Law to Canadian industrialists Wednesday, 30 of August of 2006An encounter was maintained by MIbam's leader, Jose Salamat Khan, the ambassador of Canada in Venezuela, Renata Wielgosz and Louis Marcotte, the one in charge of diplomatic Businesses.
The Ministry of Basic Industries and Mining will participate in a business event predicted by the Canadian Embassy due October 16, 17 and 18th, at Margarita. In the encounter, also participated: vice-minister of Promotion of Investments, Valmore Vásquez, vice-minister of Basic Industries, Raiza Molina and the president of the Venezuelan Corporation of Guayana (CVG), Daniel Machado. Minister Khan assured that the opportunity will be propitious to explain the industralists of the northamerican country, the kindness of the new Law of Mines. He explained the nature of the project of law of Mines by the National Government- through the National Assembly- and how it will offer a great opportunity to national and foreign investors. He also stated that Canada, is one of the countrys that maintains important investments in the mining sector.Minister Khan declared his interest on these investments, as long as they fulfill the objectives that have been anticipated, after the establishment of strategic alliances, based on the principles of cooperation, solidarity, complementariness and reciprocity.
After the activation of the New mining Law, in the area of the mining, that guarantee technology transference, the qualification of the human resource, the technical attendance and the progressive incorporation of national added value.
However, it was left clear that this new scheme of strategic alliances will not leave behind the communitie. The mechanism of social responsibility on the part of the companies, as well as, the interest of the nation in maintaining the majority shareholder of the mixed companies should be establish.
"In any country of the world the mineral resources must be property of the nation, that is to say, that belongs to him to the town, nevertheless, it does not deny that the relation with the private sector", expressed Khan.
In agreement with the information contributed by the holder of the Mibam, the relation that maintains the State with foreign investors must be clear, transparent and mainly it must allow the right to sovereignty preserved.
During the meeting the idea that was discussed in the macro wheel of businesses it handles other possibilities for the investment that are of interest as much for the foreign industralists, like for the Venezuelan State."
Source: DIARIO DE GUAYANA "Isidro Casanova (Sept 1, 2006) Headline: Beginning auriferous projects call for miners' evacuationTumeremo. John Madero, engineer and President of the Autonomous Mining Institute of Bolivar represented Francisco Rangel Gómez (Governor) at an important meeting with high authorities as the Mayor Marlene Vargas. While there, he commented that the evacuation will involve 6.000 miners of La Paragua and Gran Sabana to Sifontes, through the execution of projects, the first ones on the list are: Las Cristinas, Brisas del Cuyunàand RuscaolÃÂn, which have 6.000 jobs available, all 3 of them. Las Cristinas and Brisas de Cuyunàare located in Las Claritas while RuscaolÃÂn is in KM88.
We understand "he said- Marlene Vargas and how worry she is and that's the main reason why she wanted us here. The Municipality of Sifontes should absorb miners from CaronàRiver and La Paragua, along with their families, so it is important and necessary to open new houses, health programs, education, viability, etc. Parts of the areas that will be assigned have been all ready selected, and are just waiting for financing program.
Now the people of Sifontes, especially small and medium miners have to opportunity to work. The Ministry of Environmental Affairs should issue the permits for Las Cristinas, Brisas and Ruscaolin, just because, once those projects begin, more jobs will be available. They have done everything fairly and properly, why not give them the permits?
We have to remember that the majority of miners are working in mines because they don't have a job, as a way out. These miners have to be stimulated to focus on other fields. 80 from the big group miners are from other places. A lot of them want to change their life style. A miner's life is slavery and does not have a proper social scale. The miners evacuated to Sifontes have the opportunity to choose with the reconversion program.
Noticias del SurSe trataron diversos puntos de interés
Realizada reunión sobre reconversión minera en Sifontes
Por: CorresponsalÃÂa del Sur
31 de Agosto de 2006El próximo éxodo de mineros a la zona mantiene en alerta a todas las personas vinculadas a la minerÃÂa en el sur del estado
En una reunión llevada a cabo en Tumeremo cerca de la Plaza BolÃÂvar y que contó con la presencia de diferentes personalidades de la región como la alcaldesa del municipio Marlene Vargas, ingeniero Juan Cabeza Presidente de Ferrocasa, Diputado Francisco Jiménez, Vice ministro del agua ingeniero Ernesto Paiva asàcomo diferentes personalidades quienes directa o indirectamente están ligados al mundo minero; se trataron diversos puntos de interés para la zona sur del estado en cuanto a la minerÃÂa.
La encargada de dirigir la reunión fue la alcaldesa de Sifontes quien poco a poco explicó las diversas necesidades del municipio Sifontes que podrÃÂan ser colapsadas con la pronta movilización de mineros a la zona, quienes provienen de La Paragua, pues el Presidente Chávez declaró a Sifontes como municipio minero de Venezuela.
Como una de las premisas la alcaldesa señaló que no se aceptarÃÂan balseros en la zona, por cuanto las únicas permitidas serÃÂan para dragar la represa del municipio. Con motivo de esta reunión se hicieron presentes el Comandante del Teatro de Operaciones Nº5 Gral. Div. (Ej.) Francisco Enrich Trujillo, el vice ministro de minas Eduardo Vera, asàcomo el Jefe Regional de la zona educativa Mauro Suárez y representante del Ministerio de Ambiente.
Se pidieron las garantÃÂas necesarias para que los mineros quienes fueran a la zona pudieran vivir dignamente, señalando la necesidad de designar áreas de trabajo las cuales puedan tener reservas probadas con tiempo estimado para asàpoder prever la finalización de las mismas para que aquellos quienes la trabajen puedan tener un plan de reconversión premeditado en su momento.
En la reunión la Alcaldesa Vargas lanzó una crÃÂtica severa a los representantes del Mibam quienes no estuvieron presentes en la reunión pautada por los mineros del Km. 88 ya que como se indicó anteriormente los mismos señalaron que de no ser con el Ministro, Gobernador del Estado o Presidente de la República no se reunirán con más nadie para discutir su actual situación.
También se tocó el tema de los proyectos de gran minerÃÂa que en algunos casos están esperando por sus respectivos permisos para comenzar operaciones, tal es el caso de Las Cristinas (Crystallex), CaolÃÂn y Brisas del CuyunÃÂ, las cuales podrÃÂan fomentar una gran cantidad de empleos para todos los trabajadores de la zona.
En cuanto al desarrollo endógeno que se pregona en las diferentes consignas del gobierno, esperan que el pequeño minero pueda vender su producto a centros de acopio del mismo Banco Central, si es posible ya que sólo las empresas grandes son las que pueden vender al mismo tal y como es el caso de CVG Minerven.
En cuanto al olvidado tema de los indÃÂgenas de la zona la alcaldesa Vargas señaló que los mismos se encuentran en franca desventaja frente a las contaminaciones en la zona, cabe destacar que el concejal indÃÂgena no estuvo presente en el acto para poder presentar su opinión al respecto.
Según un censo serÃÂan 7.000 desplazados a la zona del municipio Sifontes, ante lo cual los servicios públicos de la población colapsarÃÂan ante tal demanda. En virtud del pronto éxodo de mineros la representante de la municipalidad sifonteña, pidió al Mibam, Gobernación del Estado y demás ministerios presentes que se preste una ayuda de manera mancomunada para poder mejorar ciertos servicios de la zona. Ante tal situación la alcaldesa pidió al ejecutivo nacional emplear diferentes mecanismos para poder recibir a la gran cantidad de personas que se trasladarán a la jurisdicción de Sifontes.Caso de las balsas
En cuanto a las balsas, la Alcaldesa Marlene Vargas recalcó que "no se permitirá el uso de balsas en el Cuyunàbajo ningún concepto, asàcomo el Caronàes importante para Venezuela porque en verdad lo es, el Cuyunàes importante para Sifontes". Todo esto enmarcado frente a una denuncia con relación al presunto pase de balsas en la Troncal 10, las cuales serÃÂan 7 balsas que irÃÂan a la zona sur del municipio bajo un permiso firmado por una persona de apellido Perdomo de parte del Mibam. Con referencia a la utilización de balsas en la represa el viceministro del agua en su intervención expresó que serÃÂa más factible crear una nueva represa que dragar una existente ya que serÃÂa muy dificultoso.
Destacó que los mineros que se muevan a la zona serán bienvenidos pero sin balsas ya que las únicas permitidas serÃÂan unas para dragar la represa municipal. En cuanto al pensamiento de un minero señaló nuevamente la existencia de 2 tipos de minero, el de convicción y el buhonero, señalando que el primero serÃÂa aquel que en verdad cree en la minerÃÂa como tal asàcomo sistema de vida y el último como minero buhonero que sólo toma la actividad porque no tiene nada que hacer u oportunidad de trabajo, señalando que muchos de los mismos son población flotante de otros estados, ante los cuales hay que establecer planes que puedan llevar a una efectiva reconversión del mismo en su lugar de origen.
Posted by Posted by Bill Cara on September 6, 2006 02:15:41 PM | Category: Goldminer Producers
Discourse
Hmm.
"Crystallex has called a Special Meeting for October 30."
"The Ministry of Basic Industries and Mining will participate in a business event predicted by the Canadian Embassy due October 16, 17 and 18th, at Margarita."
Very lucrative coincidence!
Thank you Sir!
Posted by: NYUgrad
at
September 6, 2006 3:42 PM [link]
Anybody knows what's going on with oil stocks? Sharply down, low daily rsis.
Posted by: SiO2
at
September 6, 2006 3:42 PM [link]
Re: "what's going on"
Wall Steet's back from their "summer in the Hamptons" break. Clearing the inventories built up by the junior analysts left behind to mind the store. Preparing for the final push to generate profits for end of year accounting. There are more than a few optimists who still believe they can end the year in the black. We shall see...
Posted by: oratier
at
September 6, 2006 4:26 PM [link]
For what it is worth J Cramer (a talking head, but someone who 1st urged me to do hw on KRY) just said Chavez should be pulling the trigger and the final permit is about to be given to Crystallex. if you are looking for a nice pop and want to trade, Fri AM is the time to sell.
There's usually a replay at 9pm Eastern on cnbc.
Posted by: NYUgrad
at
September 7, 2006 7:41 PM [link]
PS I am by no means selling my KRY on any circumstances prior to $9-13 range. :)
Posted by: NYUgrad
at
September 7, 2006 7:42 PM [link]
oil stocks down w/ oil. perhaps this drop in price is influenced by coming mi-term elections.
Posted by: rick s
at
September 7, 2006 11:08 PM [link]
I wonder who is selling KRY at these levels with all the pending news?
Posted by: NYUgrad
at
September 8, 2006 10:09 AM [link]

Interesting to note that the former CEO & a director of the company was previously Venezuela's Ambassador to Spain.
http://www.prnewswire.co.uk/cgi/news/release?id=35932
Here is a rather long interview transcript with Todd Bruce, current CEO.
http://www.twst.com/ceos/AEF609.htm
"Most of the equipment and supplies
that we need in the short to medium term is sitting on the docks ready
to go."
Posted by: wavesmash
at
September 6, 2006 3:42 PM [link]