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Crystallex Intl Corp
KRY/TSE
August 12, 1998
Planning Acquisition Of Uruguay's San Gregorio Gold Mine
Properties Include 420,000 Ounce Proven Reserves, 250,000
Hectares Exploration Lands
VANCOUVER, BC Aug. 12 Crystallex International Corp. today
announces that it has established the principles of agreement with
Warrior, a division of Standard Bank London Limited, acting on
behalf of the bank and KPMG as receiver for the American Resources
Corporation subsidiary of Rea Gold, under which Crystallex has been
designated the preferred buyer to acquire the San Gregorio assets of
Rea Gold. Crystallex is now completing its closing due diligence for
the transaction and closing, subject to final approvals, is
anticipated in September.
The operating San Gregorio mine is located in the Rivera Crystalline
Island of Northern Uruguay, an extensive block of Precambrian rocks
in the vicinity of the Brazilian border. The San Gregorio orebody
has indicated resources of 680,000 ounces of gold, including 420,000
ounces of mineable reserves. Production at San Gregorio commenced in
January 1997 and is expected to average 70,000 ounces per year during
the next five years. Exploration programs will be aimed at extending
the mine life.
Cash costs for this operation are anticipated to average in the order
of $220 per ounce. The San Gregorio mine operates under strict
environmental guidelines and was awarded first place for Latin America
in the 27th World Mining Congress' ecology and environmental contest.
Included in the purchase are the exploration rights for a total of
approximately 250,000 hectares of mineral properties in Uruguay. These
exploration licenses are located in the Rivera Crystalline Island and
the Florida Greenstone belt in southern Uruguay. At Rivera, airborne
geophysical surveys, satellite imagery and limited ground follow-up
have identified a 2 km wide gold-bearing shear system which runs the
entire 90 km length of this Precambrian outlier. The Florida Greenstone
belt is a 250 km long and 30 km wide package of supracrustal rocks and
granitoids characterized by several high grade quartz veins and
auriferous shear zone targets.
"Completion of the San Gregorio acquisition will place Crystallex well
on its way toward our stated goal of 150,000 ounces of annual gold
production," said Crystallex President and CEO Marc J. Oppenheimer,
commenting on today's announcement. He continued, "We anticipate
moving to deep rock production in Venezuela once construction of an
underground mine has been completed and the San Gregorio acquisition
will complement our production plans."
Crystallex International Corporation is a gold mining and exploration
company. The Company's strategy for growth is to develop its portfolio
of properties in South America as well as to diversify geographically
by investing in producing or near-production projects and by exploring
properties of merit in other areas of the world.
Note:
This news release may contain 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 release, 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 ocould came
actual results to differ materially from the Company's expectations
are disclosed under the heading "Risk Factors" and elsewhere in
documents filed from time to time with The Toronto Stock Exchange,
the United States Securities and Exchange Commission and other
regulatory authorities.
A. Richard Marshall, VP, 800-738-1577
Andrea Boltz, 604-683-0672
Company News On-Call:
prnewswire.com or fax, 800-758-5804, ext.114620/
crystallex.com
Larry Morrow |
