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Gold/Mining/Energy : Precious and Base Metal Investing -- Ignore unavailable to you. Want to Upgrade?

To: Proud Deplorable who wrote (32094)	11/5/2004 1:34:34 PM
From: The Vet	Respond to of 39344

Ralph, I agree entirely that the whole KRY, PDG, VVV saga at Las Cristinas brought out the worse in all the parties not just the court system in Venezuela. But the gold is there and it will eventually be mined. Personally I wouldn't invest in KRY because I don't like the management and in my mind it is still a legal minefield and financiers and potential suitors for any JV or take over know that. Certainly I wouldn't pay $75 to $80 a reserve ounce for it on a risk / reward basis, but even then it still may work out. However to paint Brisas and Gold Reserve with the same brush is illogical. GRZ has had no title issues, legal problems or permit issues with Brisas and they deal directly with the MEM and have NOTHING to do with the CVG. You can't ignore the fact that strengthening currencies in most of the gold producing countries seriously impact the margins of miners in countries like South Africa, Australia, Canada and all the central African mines where their costs are linked to the Euro. Venezuela's bolivar at over 1900 to the USD has consistently weakened all this year. Local costs for power, fuel, labour etc. in Venezuela are very low and Brisas has excellent infrastructure, power lines, roads, port etc. already in place. GRZ will be producing gold at a cash cost of around $105 an ounce (with copper credits) from Brisas. It's hard to get cash costs like that anywhere now... goldreserveinc.com