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Gold/Mining/Energy : Gold Reserves Limited GLR - TSE -- Ignore unavailable to you. Want to Upgrade?

To: The Vet who wrote (371)	7/6/2002 5:26:21 PM
From: Syncrude	Read Replies (3) \| Respond to of 406

The Vet, The question still remains. What does bashing Vannessa on this message board have anything to do with Gold Reserve?? It is obvious that Brisas as a stand alone project does not have robust economics, whether gold or copper. I do agree that a combined Brisas - Las Cristinas project is what the Venezuelans would prefer to see. In any case, everyone should keep in mind that both Brisas and Las Cristinas are large tonnage, but LOW GRADE deposits. With respect to Vannessa, the deal they made with Placer Dome made perfect sense. The LC project did not appear economic to PDG and for Vannessa it was a low cost means to consolidate its interests in Venezuela. Why do you attribute some devious intentions on the part of Vannessa? Do you think Crystallex was invited either? Of course not. Coming back to Gold Reserve, I think that shareholder interests could have been better served by using the cash they had at the beginning to diversify elsewhere. As things stand, the money is being depleted to keep paying management fees and office expenses. Vannessa is still VERY much before the courts, just as Crystallex is, and very likely just as Gold Reserve might be if the rule of law is not abided by CVG..... Keep an eye on the Vannessa proceedings. If they can convince the outside world that their properties were expropriated without compensation, that potential investors will stay away.... Glad to see that you are not a Crystallex cult member, but your rude attack on Vannessa on a Gold Reserve message board is very curious. Why blame Vannessa for holding things up when the POG is not robust on a sustained basis, Crystallex suing the government agencies, etc etc etc. There even had been talk of concessions being cancelled if work was not started to develop the properties. This could have affected Gold Reserve too. Finally, keep in mind that the government is led by Chavez who has devoted more energy in cuddling with leftist regimes around the world, than taking care of the country's many, many problems. Thanks for your polite and constructive rebuttal.

To: The Vet who wrote (371)	7/10/2002 10:24:15 AM
From: Valuepro	Read Replies (1) \| Respond to of 406

OT "They have one of the worst hedge books around (if not the worst)." A common misconception. I've spoken with the company - both Richard Marshall and Marc Oppenheimer - on this. 1) Almost all of the hedging is done at the requested of Standard Bank of London as security for loans, not as an intentional means for KRY to lock in gold prices. 2) Unlike other hedging programs, and because this is really Standard Bank's program, it can rolled forward. In other words, as the price of gold rises, these contracts can be rewritten at higher prices. 3) Unlike almost all other hedging programs in the industry, KYS's contracts are on 5-years terms when the standard is 15. 4) Going into the future, far less new hedging will be done. 5) As production increases, hedging will become a lesser proportion of production. 6) As a percent of reserves, KRY's hedging is far less than that of major producers. Just thought you'd like to know. Cheers, VP