Tuesday January 26, 9:01 am Eastern Time
Company Press Release
SOURCE: Crystallex International Corporation
Crystallex Achieves New Efficiencies at San Gregorio Mine
Operation
VANCOUVER, British Columbia, Jan. 26 /PRNewswire/ -- Crystallex International Corporation (Amex: KRY; Toronto)
today announced that gold production at its 100% owned San Gregorio mine for all of 1998 was 74,042 ounces, an increase
of 47% over 1997. Gold production in the 1998 fourth quarter alone was 20,050 ounces, compared with 53,992 for the first
nine months of 1998 combined. The fourth quarter gold production increase occurred despite a slight reduction in tonnes
milled while modifications were being made to the mill circuit. By the end of 1998, the improved system was operating well,
with mill throughput expected to increase by 10% in 1999.
Production and productivity improvements initiated in the fourth quarter 1998 at the San Gregorio mine in Uruguay resulted
in an 84% increase in average tonnage of ore mined per day, a 12% increase in monthly gold production and a more than
15% reduction in production costs in the fourth quarter as compared to the first three quarters of 1998.
Ore mined during the fourth quarter averaged 5,151 tonnes per day compared to 2,804 tonnes per day during the first three
quarters of 1998. This is nearly double the mine's average daily milling requirements. The resulting stockpile enables the
mine to go on a six day per week operation and plan a four week holiday shutdown in the mine, thus eliminating the need for
one mining and repair shift, and vacation replacement workers during 1999. Consequently the workforce has been reduced
from 268 to 169. Concurrently, manpower productivity at the mine nearly doubled, with production increasing from 66
tonnes per manshift during the first three quarters to 131 tonnes per manshift during the fourth quarter.
The production and productivity improvements at San Gregorio were strongly reflected in lower cash costs of gold
production during the fourth quarter, which were under $210 per ounce, compared to nearly $245 per ounce during the first
three quarters. This compares even more favorably with 1997 cash costs of more than $280 per ounce.
Crystallex's President and Chief Executive Officer, Marc J. Oppenheimer commented that the Company had taken a very
aggressive approach toward increasing the efficiency of the San Gregorio operation. ''We knew where improvements needed
to be made even before the acquisition was completed in October, and we made suggestions early on so we could see the
effects throughout the fourth quarter,'' Oppenheimer said. ''We plan to continue looking for ways to improve the mine's
efficiency and to further explore the main pit and adjacent areas to extend the life of the San Gregorio mine.''
One such area is Santa Teresa West, less than two kilometres west of the main pit. Recent drilling at Santa Teresa West has
been encouraging, indicating a potential extension to mineable reserves. Drill results (all intersections are true width)
included 26 meters at 4.44 g/t (RCD-05), 30 meters at 2.04 g/t (RCD-04) and 12 metres at 6.25 g/t (RCD-34). Drilling is
continuing in the Santa Theresa West pit and the Company plans to conduct additional drilling in the San Gregorio main pit
where mineralization is known to continue at depth and along strike, west of the current workings. Pit redesign and feasibility
studies aimed at including the new resources in the mine plan will be completed in February 1999. It is expected that this
work will yield a larger pit and replace resources mined out during 1998.
''We're very pleased with the results at San Gregorio. This property fits very well with our strategy to expand geographically
through the acquisition of producing mines and high potential mining properties. Further, the efficiencies and productivity
improvements made in the mine operation attests to the ability of our management team to execute that strategy. San Gregorio
is an excellent platform to support our plans for future growth at Crystallex,'' Oppenheimer said.
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 could cause 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.
The Toronto Stock Exchange has not reviewed this release and does not accept responsibility for the adequacy or accuracy
of this news release.
SOURCE: Crystallex International Corporation
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