►CRYSTALLEX WINS LAS CRISTINAS...FINALLY
MIBAM Approves the Las Cristinas Gold Project
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TORONTO, ONTARIO--(CCNMatthews - March 26, 2006) - Crystallex
International Corporation (TSX:KRY) (AMEX:KRY) reported today that at
meetings convened by the Corporacion Venezolana de Guayana ("CVG"),
Crystallex was informed by the CVG it has received official notice from
the Ministry of Basic Industry and Mining ("MIBAM") advising that MIBAM
has formally approved the technical, economic and financial Feasibility
Study for the Las Cristinas gold exploitation project. In addition,
Crystallex has received formal confirmation of this approval directly
from MIBAM itself.
The official approval of the project by MIBAM is based on the original
terms and conditions of the underlying Mine Operating Agreement ("MOA")
signed between the CVG and Crystallex in September 2002. Approval by
MIBAM of the Las Cristinas gold project is a critical milestone as it
brings final resolution to the technical, economic and financial
parameters of the Las Cristinas gold project as established in the
Crystallex Feasibility Study. Through the MIBAM approval, the Government
of Venezuela has officially sanctioned the Las Cristinas gold project
from the technical, economic and financial perspective. The project will
be of significant importance to the State of Bolivar and the Republic of
Venezuela.
Todd Bruce, Crystallex President and Chief Executive Officer said, "This
formal approval by MIBAM represents the crucial cornerstone for the
development of the Las Cristinas gold project and also represents the
final external input required by the Ministry of the Environment and
Natural Resources ("MARN") to complete the permitting process. We
anticipate receiving this MARN permit in the near term which will allow
us to immediately begin construction of the Las Cristinas Gold Project."
Detailed engineering and design for the Las Cristinas project is
essentially complete and approximately US$179 million has been committed,
including US$94 million already spent, under contract for equipment
purchase orders comprising all long lead items such as the mining fleet,
crushers and grinding mills, as well as various construction and service
contracts. The mining fleet is ready and in storage on the docks in
Houston, USA and Antwerp, Belgium and all the other major equipment items
are also on schedule in terms of fabrication and delivery.
Upon receipt of the final permit from MARN, Crystallex will commence
construction of the base case 20,000 tonnes per day ("tpd") operation
which should see initial production commence in early 2008 at an average
level of approximately 300,000 ounces of gold annually over the first
five years. With 13.6 million ounces of proven and probable gold
reserves, in excess of 17.7 million ounces of measured and indicated gold
resources and an additional 4.5 million ounces of inferred gold resources
(Crystallex News Release dated February 13, 2006), Crystallex plans to
assess opportunities to double the scale of operations to 40,000 tpd
based on the previously completed 40,000 tpd expansion pre-feasibility
study which would see annual gold production average approximately
500,000 ounces.
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
that is currently under development and which is expected to commence
gold production in early 2008 at an initial annualized rate of some
300,000 ounces at the initial planned production rate of 20,000 tonnes of
ore per day. Other key assets include the Tomi Mine, certain Lo Increible
properties and the Revemin Mill. Crystallex shares trade on the TSX
(symbol: KRY) and AMEX (symbol: KRY) Exchanges.
NOTE: This Release may contain forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, which
involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of Crystallex,
or industry results, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Forward-looking statements are subject to a variety of risks
and uncertainties, which could cause actual events, or results to differ
from those reflected in the forward-looking statements. Should one or
more of these risks and uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially from
those described in forward looking statements. Specific reference is made
to "Narrative Description of the Business - Risk Factors" in the
Company's Annual Information Form ("AIF"). Forward-looking statements in
this release including, without limitation to, statements regarding the
expectations and beliefs of management include the following: gold price
volatility; impact of any hedging activities, including margin limits and
margin calls; discrepancies between actual and estimated production,
between actual and estimated reserves, and between actual and estimated
metallurgical recoveries; mining operational risk; regulatory
restrictions, including environmental regulatory restrictions and
liability; risks of sovereign investment; speculative nature of gold
exploration; dilution; competition; loss of key employees; additional
funding requirements; and defective title to mineral claims or property,
as well as those factors discussed in the section entitled "Risk Factors"
in Crystallex's AIF, annual report, and elsewhere in documents filed from
time to time with the Canadian provincial securities regulators, the
United States Securities and Exchange Commission ("SEC"), and other
regulatory authorities.
ADDITIONALLY: The terms "Mineral Reserve", "Proven Mineral Reserve" and
"Probable Mineral Reserve" used in this release are Canadian mining terms
as defined in accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects under the guidelines set out in the
Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards
on Mineral Resources and Mineral Reserves, adopted by the CIM Council on
August 20, 2000 as may be amended from time to time by the CIM. These
definitions differ from the definitions in the United States Securities &
Exchange Commission ("SEC") Guide 7. In the United States, a mineral
reserve is defined as a part of a mineral deposit which could be
economically and legally extracted or produced at the time the mineral
reserve determination is made.
The terms "Mineral Resource", "Measured Mineral Resource", "Indicated
Mineral Resource", "Inferred Mineral Resource" used in this release are
Canadian mining terms as defined in accordance with National Instruction
43-101 - Standards of Disclosure for Mineral Projects under the
guidelines set out in the CIM Standards. Mineral Resources which are not
Mineral Reserves do not have demonstrated economic viability.
For a detailed discussion of resource and reserve estimates and related
matters see the Company's technical reports, including the Annual
Information Form and other reports filed by the Crystallex on
www.sedar.com.
A qualified person has verified the data contained in this release.
NOTE TO U.S. INVESTORS: While the terms "mineral resource", "measured
mineral resource", "indicated mineral resource", and "inferred mineral
resource" are recognized and required by Canadian regulations, they are
not defined terms under standards in the United States and normally are
not permitted to be used in reports and registration statements filed
with the SEC. As such, information contained in this report concerning
descriptions of mineralization and resources under Canadian standards may
not be comparable to similar information made public by U.S companies in
SEC filings. With respect to "indicated mineral resource" and "inferred
mineral resource" there is a great amount of uncertainty as to their
existence and a great uncertainty as to their economic and legal
feasibility. It can not be assumed that all or any part of an "indicated
mineral resource" or "inferred mineral resource" will ever be upgraded to
a higher category. Investors are cautioned not to assume that any part or
all of mineral deposits in these categories will ever be converted into
reserves.
FOR FURTHER INFORMATION PLEASE CONTACT:
Crystallex International Corporation
A. Richard Marshall, VP
Investor Relations Contact
(800) 738-1577
info@crystallex.com
www.crystallex.com
The Toronto Stock Exchange has not reviewed this release and does not accept responsibility for the adequacy or accuracy of this news release.
Copyright 2001 The Globe and Mail |
