September 20th, 2006 The following information is relative to a little Gold Mine named Las Cristinas, Las Cristinas is one of the largest unmined gold plays on the face of the earth.(13.6 million ounces of open pit glory) Link to Investment fact sheet for Crystallex: http://www.researchmag.com/NR/rdonlyres/130F5C94-28D5-4D3D-94B1-B2F83E7AE5AD/207110/fs_kry.pdf It is owned by the Country of Venezuela that has entered into a mine operating agreement with a Canadian mining company named Crystallex. It has been a bumpy ride for us shareholders as we anxiously await an environmental permit from the Venezuelan Government (MARN). This information is a culmination of numerous events and press releases that have been posted on Stockhouse in the last 6 months and we hope will serve as a good source of information for new investors and a good source of resolve for those faithful longs. The KRY story is longer than 6 months of course but the following info should give you a good grasp of the present day situation. In the fall of 2005 Hugo Chavez, President of Venezuela announced a complete review of the mining legislation which absolutely slaughtered this stock as there was fear throughout the gold mining industry that Hugo would nationalize all mines in the Country. This is when I started to buy Crystallex shares. The reason for this bet is that it was Crystal clear that Las Cristinas was already owned by the Country and they needed somebody to mine this Gem of a deposit, why not the company that held the contract. I researched Crystallex and was convinced as I am today that they had the talent and that they had the right answers to all the questions that the Venezuealn Gold industry was faced with. The stock built a new base and started to climb back nicely in December of 2005. On January 10, 2006 a guy named Jim Cramer recommend the stock as a highly speculative play, right around that time KRY started getting some decent traction. Then on March 7, 2006 Crystallex was awarded a permit for a Quarry that would service Las Cristinas. TORONTO, ONTARIO, March 7, 2006 – Crystallex International Corporation (TSX: KRY) (Amex: KRY) reported today that the Ministry of the Environment and Natural Resources (“MARN”) in Venezuela has notified Crystallex of the Ministry’s approval of the “Permit to Impact Natural Resources” for a quarry on the Albino property to provide aggregate for the adjacent Las Cristinas project, and of the initiation of the normal administrative process by the Ministry. Previously, on February 15, 2006, Crystallex announced that it had been granted the rights to explore and develop a quarry on the Albino property as a source of aggregate for the Las Cristinas project by the Mining Institute (IAMIB) of Bolivar State, Venezuela. Aggregate is required for the construction and operating phase of the Las Cristinas Project which currently contains gold reserves of some 13.6 million ounces at a gold price of US$400 per ounce. The Albino concession is located approximately 1 kilometre from the Las Cristinas Project site. Todd Bruce, Crystallex President and CEO commented, “MARN’s approval of the Permit to Impact Natural Resources for the Albino aggregate quarry that will service the Las Cristinas project is a key development as it brings us closer to the issuance of the Permit to Impact Natural Resources for the Las Cristinas project itself. We look forward with great anticipation to receiving this final permit for Las Cristinas which will enable the company to commence the construction process.” (see Crystallex website) On March 26, 2006, more good news was released from Crystallex. TORONTO, ONTARIO, 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. ------------------------------------------------ This stock really started to Rock and Roll and then Jim Cramer jumped even harder on the KRY bandwagon with a full blown buy buy buy on April 5, 2006 here is his take from that day: 'GOLD DIGGERS' Back on january 10th, right here on mad money, i recommended crystallex (kry), the venezuelan gold mine. I gave you this one at $2.60, and now it's up to $4.42 because gold has done nothing but go up in the last three months. We like kry because we like gold, and it's the cheapest gold mine on earth. This is a two-part story. Part one is about gold. Part two is about hugo chavez. Gold keeps going higher because of demand from india and china. Gold actually cost a few bucks more in india than the world price. Isn't that unbelievable. That's because demand is so strong in that country. Now, this demand is ostensibly for jewelry, but that's not the reality. In china and india, they are buying 24k gold. Hmm, think about that. You don't use 24k gold for jewelry, oh no. It's too weak and too soft. It's actually being bought as a hedge against the fiscal profligacy and potentially communist natures of the chinese and indian governments. The citizens of these countries don't trust their governments not to run a massive inflationary budget. So they're pouring all their newly-accumulated wealth into 24k gold. It's a hedge ladies and gentlemen. Meanwhile, all the major gold co.s are producing flat out! And they can't replace their reserves. A bullish situation. That's why - that's why i like gold now. The demand is huge. The supply is diminishing. Now, why do we still like kry? when i told you to get behind this stock, it was a total gamble. I mean they have the largest unmined deposit of gold in the world. Hey but, jeez, it's in venezuela - sworn opponent of these united states. And the big question was whether or not hugo chavez would let them mine it. The question you've got to ask yourself right now, is why shouldn't we ring the register? For a quick 75% gain? That's better than a sharp stick in the eye, as we say on wall street. But i think kry is only going higher - much, much higher! Not only that, even though the stock is up more than a buck, from where i last recommended it, i think it's even more compelling now - more compelling - than it was back in january. This stock could go up three or four times from where it is right now! Let me tell you why this could be the big story for 2006, now that ati was already the big story. Wall street does not know how to handle communist strong men like hugo chavez. The street is still valuing this stock like chavez might not let the guys at kry mine! That's pure foolishness. Last week, kry got permission from the venezuelan mineral bureau to mine. Now there's only one more board that stands in the way; one more board that needs to approve it - the environmental commission, and wink, wink - i think their approval is imminent! You've got to understand that chavez wants this mine as much as kry does. He gave them the total concession; everything they wanted - the total lease. I know, the press in america is just wildly anti-chavez. But do you know he's got actually a pretty good record with business. But just look at the record: for the six years that he's been in power, you've had no nationalizations, no confiscations, and a lot of co.s, including gold co.s, have been happily developing mines in venezuela. It's a veritable house of pleasure there. If chavez wanted to confiscate the gold, he would have done it last week. So, what happens when the environmental ministry gives kry to get up and running? I think it will be the cheapest gold mine on earth. How cheap? Their reserves will be valued at $67 dollars an ounce, compared to $257 an ounce of a similar compilation of mines. These numbers courtesy of wellington west of canada - best of breed gold broker, up in the area of newfoundland. This is an absolutely ridiculous disparity that cannot be maintained! Somehow, the gap between kry and the peers will have to close. They've got 13.6 million ounces of gold. That's 300,000 ounces a year for 43 years! I think either the market will take kry up to where it belongs, at 4 times where it is now - right now, when they start producing in 20 months - or, and you know on cramer's mad money, we do not speculate unless the fundamentals are good - i think kry will get a bid from another gold mine. Because i think all the co.s that run gold mines know how undervalued this co. Is and they're just sitting around waiting for chavez to do up or down. Both hecla () and gold fields () are in venezuela, and they love doing business with the chavez man. And i think that they'd love to buy kry for three or four times where it is now, now that the heavy lifting's been done. How 'bout a bottom line?: i think you get into kry before the environmental industry approves and this stock pops! Buy, buy, buy! Once they start producing, this stock either should go up three- or four-fold, or the major gold co.s should buy it at near the price, because it's just too attractive not to gobble up! As they say on mad money, you can't afford to miss it! Hey, kry - i'm making it the new 2006 stock. This pump from Cramer sent the stock to its 52 week highs of around $7.00 a pull back was inevitable especially with the lack of any permit announcement. On June 5th a release came out that showed support for a expedient decision from MARN here it is: June 5th, 2006 Venezuelan Mining Commission president to meet MARN Jaquelin Farias El Diario de Guayana (Isidro Casanova): After numerous calls for environmental permits to kick start gold-mining projects at Las Cristinas and Las Brisa del Cuyuni at Las Claritas, in Sifontes municipality, the president of Venezuela's Parliamentary Mining Commission, AN deputy Ricardo Gutierrez is scheduled to meet with Environment Minister (MARN) Jaquelin Farias this week to insist that she should issue the necessary environmental permits to facilitate the kick-starting of the two projects, to substantially reduce pressure from the thousands of miners who do not have either claims or permits for small-scale mining who will otherwise be swallowed up by the two major mining projects. Las Cristinas and Brisas del Cuyuni ... which sit on rich gold deposits .. have already completed their environmental impact studies, which have been duly presented to the Environment Ministry by Guillermo Adrian, general manager of Crystallex de Venezuela at Las Cristinas and Arturo Rivero, president of Gold Reserve de Venezuela at Las Brisas del Cuyuni. Sifontes municipality organizations and institutions have already stressed their opinions on the importance of an early start to the two projects and in this respect the Sifontes Municipal Council has already announced its backing to Las Cristinas, including Las Brisas del Cuyuni. Council chairman Professor Jesus Malave says that their agreement was sent directly both to Environment Minister Jaquelin Farias and to President Hugo Chavez Frias. Meanwhile, Sifontes Mayoress, Marlene Vargas has received numerous advisories from the company representatives concerned, informing her that they have completed all legal requirements and that their applications for environmental permits have been presented satisfactorily in due order. The investments should not be held up According to available information, both Crystallex and Gold Reserve have continued investing in geological and social studies as well as services for the community. The investments have gone to sporting events, medical supplies and consultation services to the community as well as the financing for small-scale mining activities etc. According to details provided by the management of the two projects, they will proceed with construction of the respective mine installations as soon as they get the permits, and will contract between 2,000 and 3,000 workers, perhaps even more. For both constructions, they will bring in a large amount of equipment which has already been procured and is just now simply waiting for shipment from international ports. Defending Las Cristinas and Las Brisas The Mayoress says that she understands the process to kick-start these projects which can cause an impressively positive impact on the economies in southern (Bolivar) municipalities, and, at the highest possible levels, she has stressed the necessity that these projects should be given the green light a.s.a.p. "The last thing I did," she says," was when Minister of Environment, Jaquelin Farias and I joined the President of the Republic, Hugo Chavez for a meeting with community councils in Tucupita, when I was able to express to the Minister the absolute necessity that the environmental permits should be issued with all possible speed. She responded with a smile: 'Oh, you! Yet again, you and your mines!'" "Following that, I met with Ricardo Gutierrez (the AN Mining Commission president) who said that he is well aware of the importance of the two projects to the region and that he will meet with the Environment Minister this week to get the issuance of the permits moving." El Diario de Guayana: AN gestiona permisos mineros Timing is everything with this story as the next news releases although not particularily negative for Crystallex were misreported by a number of news agencies including Bloomberg, Dow jones Newswire and the National Post. Old quotes were inserted into stories that were new to give the general impression that the government would reneg on it’s contract with KRY even though the contract was re-ratified by MIBAN on March 26, 2006. The new legislation that Hugo announced in the fall of 2005 was close to becoming a reality and it included the cancelling of consessions for inactive mines and for Mining Companies that were not living up to their commitments. The poor reporting of this in the North American press hammered KRY once again and the $7.00 a share was short lived as we went down the roller coaster one more time. The Company made best efforts to thwart this negative pressure on its share price with the followinhg press releases. The President, Todd Bruce was also interviewed on Rob TV, hell Todd Bruce even visited crazy Jim Cramer while the proverbial sheet hit the fan. Here are the two June 13th releases from KRY: TORONTO, ONTARIO, June 13, 2006 – Crystallex International Corporation (TSX: KRY) (Amex: KRY) - commented today that there has been considerable confusion resulting from yesterday's press coverage on possible revisions to the Venezuelan mining law, namely the incorporation of mixed companies as an exploitation structure in the mining sector. The Government stake in such mixed companies would be at least 51%. The Crystallex share price has been negatively impacted as the market seems to have interpreted the comments about mixed companies in the mining sector to mean that this structure has now become the only model under which mining will be allowed in Venezuela. It is important therefore to stress that the mixed company model under discussion is not applicable to the Crystallex Las Cristinas operating contract as the draft mining law provides express recognition of existing contracts which are in proper execution and good legal standing. Furthermore Article 11 of the draft mining law specifically provides for exploitation by way of operating contract, in a manner separate and distinct from the mixed company structure contemplated elsewhere in the draft. A translation of Article 11 is provided as follows: "Article 11: For the purposes of this Law, operation contracts shall be understood as those legal arrangements entered into between National Social Mining Production Corporation and private legal entities, for the rendering of services within the work frame of exploration activities and rational and sustainable exploitation of mineral resources." Crystallex holds a valid and binding operating contract issued by the state through the Corporacion Venezolana de Guayana ("CVG"), its regional natural resource development arm, that was officially approved and endorsed by the Ministry of Basic Industries and Mining ("MIBAM") in March of this year. As noted in the Venezuelan press yesterday, MIBAM was the entity responsible for preparing the mining law reform working paper and providing it to the National Assembly. Crystallex also released the following statement on the same day June 13, 2006: TORONTO, ONTARIO, June 13, 2006 – Crystallex International Corporation (TSX: KRY) (Amex: KRY) - Todd Bruce, President and Chief Executive Officer, responded to the market reaction to yesterday's Bloomberg newswire articles by reiterating that, “The company has a valid and binding contract to operate the Las Cristinas project, which is 100% owned by the Nation of Venezuela. We have been working closely with all the relevant institutions in Venezuela such as the Corporacion Venezolana de Guayana (“CVG”), the appropriate Ministries and the National Assembly to advance the Las Cristinas project. Just last week the Permanent Commission of the National Assembly petitioned the Minister of the Environment and Natural Resources (“MARN”) in support of Crystallex commencing the Las Cristinas project as soon as possible. In addition the media in Venezuela reported last week that Deputy Ricardo Gutiérrez, President of the Commission of Mines of the National Assembly had met with the Mayor of Sifontes district to express their joint support for the rapid commencement of the Las Cristinas project by Crystallex. Deputy Gutiérrez also stated that he had arranged to meet with the Minister of MARN to express his commission's support for the rapid development of the Las Cristinas project by Crystallex.” “In working as closely as we have with all the relevant institutions of the nation, we have received no request or proposal for any change to our operating contract,” stated Mr. Bruce. He continued, “As recently as March, 2006 the Ministry of Basic Industries and Mining ("MIBAM") officially approved the Las Cristinas Feasibility Study and the terms and conditions of the Las Cristinas operating contract.” I posted an article from June 19th found on Mine web. This is the article RENO--(Mineweb.com) If National Assembly and Venezuelan news media reports prove accurate, Venezuela's executive and legislative branches are in a very big hurry to enact mining law reform that promotes the sovereignty and nationalization of the country's mineral resources. The multi-million question that remains yet to be definitively clarified: Do the proposed reforms apply only to abandoned mining concessions, or will all foreign-operated mining concessions in good legal standing in Venezuela now face a future operating as joint venture partners either with the state and/or small miner cooperatives? The Venezuelan newspaper El Universal reported Sunday that Cámara Minera de Venezuela (Camiven), the Venezuelan Mining Chamber, is meeting Tuesday to analyze a mining reform proposal submitted by the Basic Industries & Mining Minister to Venezuela's National Assembly last Friday. However, Camiven President Gilberto Sánchez Albornoz said the companies which make up the chamber support revision of the current Mining Law, rather than making changes to Venezuela's constitution. According to notices posted on the Venezuela National Assembly website, Basic Industries & Mining Minister Victor Álvarez delivered the proposed mining law reform to National Assembly Deputy Angel Rodriguez, president of the Commission on Energy and Mines, and to fellow Deputies José Ramón Rivero and Rafael Y. Rios. Venezuela's Vice President José Vicente Rangel, is headed an executive branch committee to reform the mining law. El Universal reported that El Proyecto de Ley Organica de Minas (the mining law reform project) requires the "rescue of our sovereignty and nationalization, effectively, of mineral resources." This, in turn, would transfer regulation and control over mining activities to the state and to "promote the active participation of thousands of small-scale miners, who, for decades, have remained hostage to national and transnational private interests." The proposal would establish a "use it or lose it" policy for inactive mine concessions, which would then be turned over to small miners for exploitation. However, Sánchez Albornoz said the implementation of mixed or joint venture cooperatives involving small-scale mining operations is already included within the present mining law. He told El Universal that either officials have not read the current law or they do not understand how to interpret it. The President of the National Assembly Deputy Nicolas Maduro Moros predicted that parliament will approve el Proyecto de Ley Organica de Minas as quickly as possible during the first legislative session. Maduro Moros stressed that the legislation has top priority for approval due to its political, economic and social importance. In fact, Maduro Moros said the bill could be approved during its introduction by the plenary session of the parliament this coming Tuesday. Transnational mining and exploration companies holding mining concessions in the nation include U.S. miner Hecla Mining, Canadians Crystallex and Gold Reserve, PMG Gold Fields (a joint venture between Bolivar Gold and Gold Fields), Russian company Minera MS, and China's Chandon Mining. http://www.mineweb.net/columns/american_notes/559980.htm The question that was asked in this article was answered by our resident Chairperson of the KRY board. Goldbuggy2 did a great job of answering this question put forth by the reporter backed by a number of links this in my mind put the question to bed. Here is Goldbuggy’s post: From your good post BritNick, I would like to attack one very important question this reported brought up. Namely: "The multi-million question that remains yet to be definitively clarified: Do the proposed reforms apply only to abandoned mining concessions, or will all foreign-operated mining concessions in good legal standing in Venezuela now face a future operating as joint venture partners either with the state and/or small miner cooperatives?" HERE ARE THE ANSWERS!!! ANSWER #1 "Senior representatives of the Executive of the Republic of Venezuela, including General Francisco Rangel Gómez, President of the Corporación Venezolana de Guayana ('CVG'), and representatives from the Legislative authorities including Mr. Luis Salas, President of the Energy and Mines Commission of the National Assembly, Luis Velásquez Alvaray, recently appointed Vice-President of the Comptroller´s Commission of the National Assembly, and Rafael Simón Jiménez, member of the Comptroller´s Commission and until December 2002, Vice-President of the National Assembly of the Republic of Venezuela, clearly stated that the Republic of Venezuela fully supports the Las Cristinas Mining Operation Contract. "They further stated that in the history of the Republic of Venezuela, there has never been a single case where the government failed to honour commitments to mining, petroleum or telecommunications companies. These assurances were made during public meetings this week in Venezuela with representatives of Crystallex and international financial institutions." LINK http://cache.zoominfo.com/CachedPage/?archive_id=919063072&page_id=853082662&page_url=www%2Ecrystallex%2Ecom%2Fcontent%2Easpx%3Fid%3D29%26itemid%3D58&page_last_updated=10%2F7%2F2004+3%3A48%3A54+PM&firstName=Francisco&lastName=G%F3mez ANSWER #2 Venezuela Backs Off Mining License Threat 9/26/05 Associated Press "Foreign companies abiding by Venezuelan law will not have their mining licenses canceled by the government, a Venezuelan lawmaker said Friday." "Venezuelan President Hugo Chavez said Wednesday that his government had decided to cancel all mining licenses and stop issuing new ones to foreign companies, accusing them of gaining rights to mines and leaving them idle." "Pedro Jimenez, head of the National Assembly's energy and mines commission, said Friday that only mine concessions considered inactive or in violation of the law would be affected." "The state-owned mining conglomerate Corporacion Venezolana de Guayana, CVG, has been reviewing mining contracts and concessions. It had not been clear from Chavez' comments how foreign companies working here under operating contracts with CVG, like Canada-based Crystallex International Corp., would be affected." "Crystallex has been seeking to develop the Las Cristinas mine in east Venezuela believed to hold one of the world's largest undeveloped gold deposits. Jimenez indicated Friday that (this)project was not at risk." LINK http://www.theminingnews.org/news.cfm?newsID=1410 ANSWER #3 "The special commission of Venezuela's National Assembly has decided Crystallex must begin "once and for all" (begin) mining activities at its Las Cristinas gold project." "A probe undertaken in the town of Las Claritas in the southeastern state of Bolvar by an assembly commission determined the need to start works in the Las Cristinas zone. State holding company CVG's and Crystallex's contract for Las Cristinas development entails among other things housing construction, the creation of jobs for local residents, the expansion and maintenance of a hospital and highway extension." LINK http://www.kitcocasey.com/displayArticle.php?id=325 ANSWER #4 "A range of other natural resources, including iron ore, coal, bauxite, gold, nickel, and diamonds are in various stages of development and production. In 1996, CVG, the state-owned mining firm, announced its first joint venture with a foreign company to develop the Las Cristinas gold mine." "President Chavez personally inaugurated mine operations in May 1999, but low gold prices have forced the joint venture to put the project on hold. In April 2000, Venezuela's president decreed a new mining law, and regulations were adopted to encourage greater private sector participation in mineral extraction." LINK http://www.state.gov/outofdate/bgn/v/26180.htm ANSWER #5 "We have been working closely with all the relevant institutions in Venezuela such as the Corporacion Venezolana de Guayana (“CVG”), the appropriate Ministries and the National Assembly to advance the Las Cristinas project." "Just last week the Permanent Commission of the National Assembly petitioned the Minister of the Environment and Natural Resources (“MARN”) in support of Crystallex commencing the Las Cristinas project as soon as possible." "In addition the media in Venezuela reported last week that Deputy Ricardo Gutiérrez, President of the Commission of Mines of the National Assembly had met with the Mayor of Sifontes district to express their joint support for the rapid commencement of the Las Cristinas project by Crystallex." " Deputy Gutiérrez also stated that he had arranged to meet with the Minister of MARN to express his commission's support for the rapid development of the Las Cristinas project by Crystallex." LINK http://www.crystallex.com/content.aspx?id=29&itemid=265 ANSWER #6 "Crystallex holds a valid and binding operating contract issued by the state through the Corporacion Venezolana de Guayana ("CVG"), its regional natural resource development arm, that was officially approved and endorsed by the Ministry of Basic Industries and Mining ("MIBAM") in March of this year." "As noted in the Venezuelan press yesterday, MIBAM was the entity responsible for preparing the mining law reform working paper and providing it to the National Assembly." (The New Mining Laws) LINK http://biz.yahoo.com/iw/060613/0135522.html ---------------------------------------------------------------------- Granted some of this news is last year, but the govenment officials back then are the same ones today. Just check their names and see. So have they all, each and everyone, all of a sudden changed their minds, or is it the press that makes it look this way? It seems to me then, according to this article BritNick that this multi-million dolllar question has already been answered a long time ago. So the only doubt comes from this reporters brain, and others like him, who I am sure someone paid him very handsomely to put this doubt there. GB On June 26th Todd Bruce was interviewed by The Wall Street Transcript: Here is the interview in its entirety: TODD BRUCE - CRYSTALLEX INTERNATIONAL CORPORATION (KRY:TSX) CEO Interview - published 06/26/2006 TODD BRUCE, President and CEO of Crystallex International Corporation, brings to Crystallex extensive experience in the gold mining industry, having most recently served from February 1996 through January 24, 2003 as President and Chief Operating Officer of IAMGOLD Corporation, a TSX- and AMEX-listed company whose principal assets, the major Sadiola gold mine and the Yatela gold mine, commenced commercial production in 1997 and 2001, respectively. Mr. Bruce played a leadership role in the growth and financing of IAMGOLD, in the implementation of IAMGOLD's innovative Gold Money policy, and in the merger of Repadre and IAMGOLD in January 2002. Prior to joining IAMGOLD, Mr. Bruce served from 1980 through January 1996 in a number of senior management positions with the South African company, Johannesburg Consolidated Investment Co., and its successor company, Anglo American Platinum Corporation. Immediately prior to joining IAMGOLD, Mr. Bruce served as Executive Director, Marketing, Business Development and Strategic Planning for Anglo American Platinum Corporation. Mr. Bruce has a BSc in Geology from the University of Rhodesia and a Graduate Diploma in Engineering (Mineral Economics) from the University of the Witwatersrand in South Africa. Sector: PRECIOUS METALS TWST: What is Crystallex? Mr. Bruce: Crystallex International Corporation is headquartered in Toronto, Canada, and has mining operations and exploration properties in Venezuela. Its principal asset is the Las Cristinas Project in Bolivar State, which is currently under development. The Las Cristinas gold deposit is probably the best undeveloped gold deposit in the world. A combination of characteristics allows it to aspire to that rather prestigious title. One quality is its size. It's a very big deposit by international standards. It's currently got about 13.6 million ounces of reserves if you use a $400 gold price, which is quite a conservative base case price to use. Gold prices have recently been trading in a range of $600 to $700 an ounce. If you use $550 an ounce, our reserves increase to 14.7 million ounces. In addition to its reserve size, it's got a total resource base, including the reserves, of about 22 million ounces. So it is just an enormous size, and it has further growth potential. These two aspects ' its current size and its ongoing growth potential ' really do make it stand out in a crowd. It is also quite remarkable in terms of the infrastructure platform that we have the privilege of building this mine around, which is probably the best that you can find anywhere in the world for a major gold project today. We have the luxury of being only 19 kilometers away from the major regional tarred highway that runs from Puerto Ordaz, which is one of the larger ports in Eastern Venezuela, down past the project into Brazil. We are connected to that by a 19-kilometer all-weather road, which we've upgraded. So we've got fantastic access in terms of getting our mining fleet and our construction equipment to the site. They all come in to the deep water port at Puerto Ordaz and then down the main highway. We are also lucky that we've got a hydroelectric power line that is only six kilometers away from the mine site. It's got a brand new substation that cost some $53 million that was put in two or three years ago by the electricity supply company EDELCA, so all we have to do is run our overhead line six kilometers and we are lit up and ready to go. Those are very unusual parameters. Most new gold projects around the world are typically in very inaccessible locations such as very high up in the Andes or in Irian Jaya, Papua New Guinea, most parts of Africa and places like that. They're a long way away from any infrastructure at all, without roads or power lines. Typically you have to generate your own power, and in these days with oil where it is, that's a hugely expensive burden for mines. So we are very lucky we've got access to cheap hydroelectric power. The other advantage that the project has from being in Venezuela is that we've got the cheapest energy in the world. We've just signed a long-term contract, and the average price in 2005 money terms for the first 10 years power is $0.032 per kilowatt hour. Over and above that, if that alone wasn't enough advantage t being in Venezuela, we also have possibly the world's lowest fuel costs for running our major mining fleet, Fuel is also available on a long term contract and currently reflects a base of $0.06 or $0.07 per liter, which is something like $0.20 per gallon! The lowest energy costs in the world are further extraordinary aspects of this remarkable asset. Also, this asset is very close to being able to start construction. We are in the final administrative stages of being issued the final environmental permit. As soon as we get that, we can commence construction. So, roughly speaking, from the time we get the permit, we are only about 20 to 22 months away from this mine going into commercial production. Therefore one of the other competitive characteristics that Las Cristinas has is the short time frame to being in commercial production. The reason that's the case is the project has been advanced to an unusual extent while we have been working on our environmental permitting. During this period we've done all the detailed engineering and design work. We've ordered, paid for, and received delivery of almost all the major items of equipment. So we have our entire mining fleet sitting at the docks in Houston, ready to be shipped into Venezuela. We've got transformers on the docks ready to go as well. We've got the processing equipment, ball mills, sag mills, and crushers either fabricated or in fabrication. Thus the project is ready to go literally when we get the receipt of this final environmental permit, and that makes this a very rare sort of asset in the gold mining business. TWST: What's the agenda? What are the priorities for the next 12 months? Mr. Bruce: The immediate priority is the receipt of the final environmental permit. As soon as we get that, the project commences, and the agenda for the next 12 months is to advance the construction stage of the project through the current design schedule so that we can be on track to producing commercial gold production about 20 to 22 months after we receive the permit. TWST: What's your target for production capacity? How do you ramp into that capacity? Mr. Bruce: The current design is intended to initially process 20,000 tons per day of ore from this very large open pit operation. On average for the first five years of the mine's life, it will produce just over 300,000 ounces of gold a year. That gold will be produced at a total cash cost of about $160 an ounce for the first five years. That includes all royalties payable to the government. If you look at the 20,000 tpd mine, it has an extraordinarily long reserve life of over 41 years. Over that 41 years, we will produce an average of 270,000 ounces of gold a year, and the total cash cost, including royalties over that 41-year period will average somewhere around US$225 to $230 an ounce. Because of the extraordinarily long life of the initial operation, we've already completed a feasibility study to double the size of the operation to 40,000 tons per day. That will allow us to produce an average of 500,000 ounces per year at a total cash cost, including royalties, of about $215 US per ounce, and that would still give us a mine life of about 21 years. So there is certainly opportunity to grow and increase the size of the operation beyond that 500,000 ounce per year level. Most companies, if they are starting from scratch and have the privilege of having this project, would look to design a production rate that would give them a life based on existing reserves of about 12 to 15 years. So the fact that we've still got about 21 years at the 40,000-ton per da rate suggests to us that we have opportunities to expand even beyond the 40,000-ton per day level. TWST: Sometimes you see charts where they show where the value is realized on a gold company from the initial investment right through to the point where production and the mine operation actually begin. What has been your sense of where those value points are and where you are relative to the next recognition of real value for the company? Mr. Bruce: Traditionally, you have very rapid growth in value at the early stage of a project, whether you are discovering a new deposit or whether you are expanding one that you started from some known level of resource, but you are able to grow it much faster than the market had anticipated. As you then move into the feasibility study stage, you tend to enter into a reasonably quiet period from a valuation point of view. It may take you 12 or 18 months to do your full-scale bankable feasibility study. So there is not a lot of visible action going on. Many companies in those circumstances will flat line and come down off that previous peak. The closer you then get into your construction phase (and certainly at the point where you are then commencing production), you will usually see a pretty sharp ramp-up to higher levels of value as you turn that potential asset into a real asset by getting it into production, producing gold, generating cash flow dividends, and all the good things that go along with it. We are in a fortunate position. Although we are poised to start construction of our Las Cristinas project upon receipt of the final environmental permit, at the level of 20,000 tons per day ('tpd'), we are obviously going to have a major event at some stage, hopefully earlier in the process rather than later, in terms of expanding the operation. We are going to be able to capture further value for shareholders by committing to a doubling of the operation that would produce on average a half a million ounces a year for 21 years. So we are in a privileged position of knowing what the next big item of news and development is going to be that would capture further shareholder value. I think we may well see the decision taken to double the size to 40,000 tpd even during the construction phase of the 20,000 tpd base case operation, because the day we commit to the 40,000, we are going to add on a new layer of value. TWST: Introduce us to two or three of the key individuals in your top- level management team. Mr. Bruce: I think we've got a good spread of people who we're going to need to get this project up and going. Given the size and scale of the project, we are going to look to continue to grow the management team. We've got an experienced Chief Financial Officer, Dan Hamilton, who has been in the mining industry and the engineering industry for some 20 years. Our VP of Operations, Dr. Sadek El-Alfy, a very experienced mining person, has a Doctorate in Mining Engineering. He was the General Manager of Iron Ore Company of Canada, one of the world's largest mining companies, and he has a substantial amount of experience in operating in Venezuela with Crystallex. So he brings a wealth of appropriate operational experience. Our Vice President of Projects and Engineering is Barney Burke. He brings 30 years plus of experience in the engineering and mining project business. Prior to joining Crystallex he was with Barrick and was intimately involved in many of the major, successful Barrick gold projects over the last several years. We've got our Vice President of Exploration and Geology, Dr. Richard Spencer. He has a great deal of experience in different mineralized terrains in Africa and South America, in particular, and brings an absolute wealth of talent to expanding and growing the Las Cristinas asset. We have a well-qualified Vice President of Corporate Development and Planning, Robert Crombie, who is from the banking industry. His principal experience is on the project financing side and working for major banks. So he brings a particularly valuable skill and wealth of experience to the company in terms of exploring opportunities and project financings. We also have a very important player in our Vice President of Environment and Community Relations, John Binns, who has been in those comparable positions for companies like Barrick and Rio Tinto. He is a key player, ensuring that we correctly engineer the appropriate approach right up front in standards and policies on both the environment and in sustainable development. TWST: What historically has been the shareholder base? Has that base undergone any changes? Mr. Bruce: Yes, I think it has. Traditionally, if we look back many years, it was a predominantly retail shareholder base dominated by American retail shareholders. I think we have seen the shareholder base evolve to a more balanced mix of institutional investors and retail investors. For example in the recent March 31, 2006, institutional filings, we've seen an investor like Fidelity, which is probably the largest money management fund in the world, build up quite a substantial position in the company. I think the last figures I saw showed them with somewhere in the region of 6% of the company's shareholdings. We have other very significant high-profile institutional investors like Tocqueville Asset Management out of New York, Wellington Management from Boston, Black Rock out of Boston, and Deutsche Bank Scudder out of Australia. A couple of the larger Canadian funds also hold shares of our company. So we've got a very nice mix. We certainly have a strong retail shareholder base, which is still principally orientated to the US and has a great deal of interest and history with the company. We have been successful in expanding the story into the very well financed institutional investment communities. TWST: At this point, are there any misperceptions that you encounter in your discussions with the investment community? Mr. Bruce: I would say there is probably very little in terms of the project. It is such a remarkable and outstanding project that I think its merits are recognized throughout the investment community. I don't think there are many perceptional issues about Crystallex. The mostcommon problem that we run into is the large degree of misperceptionsthat exist about Venezuela as an investment jurisdiction. I think,unfortunately, a very large majority of those perceptions have actually been created by the media, either out of lack of understanding or because an element of the media has been polarized into taking sides in the ongoing conflict between the Venezuelan administration and the US administration. So when information or news comes out of Venezuela,there is perhaps a subconscious orientation sometimes to put a morecontroversial or more negative spin on it. In the second half of last year, we and everybody else working in Venezuela experienced a real firestorm of controversy. The government announced that it intended to change the mining title system from the current situation in which the private sector can secure mineral rights from the government either in the form of a concession or as an operating contract, to a system in which title will be issued only in the form of operating contracts. The majority of the media misrepresented this development as an attempt by the government of Venezuela to nationalize the mining industry, chase out all the foreign investors in the country, and break lawful and existing contracts. Fortunately, if you look at what the Venezuelan government has done over that period and this year, it's just the opposite. They've continued to welcome foreign investors; they have secured an Australian company to invest in a major new aluminum production facility in Bolivar State. You have oil and gas companies still picking up new leases that have been awarded. You have one of the major gold mining companies in the world, Gold Fields of South Africa, which has made a big bet on Venezuela. They bought a company called Bolivar Gold that had just gone into production and they literally put their money where their mouth was in a big way and have demonstrated validation for Venezuela as an international gold mining investment jurisdiction. Anglo American has run a very successful laterite nickel mine and ferro-nickel smelter in Venezuela for several years and there are many foreign investors involved in the Coal and Iron Ore mining projects there. The Government's decision to move to an operating contract-only title system further validates the Las Cristinas project as that is held by Crystallex under an operating contract. There are other examples of the government acting in a totally responsible manner. The most recent one actually involved the Las Cristinas Project. In late March 2006, the Ministry of Basic Industries and Mining came out with formal government approval of all the technical, financial, and economic aspects of the Las Cristinas Project. So I think what we've seen is government actions absolutely consistent with an ongoing interest and encouraging foreign investment on the basis of expecting foreign investors to be good corporate citizens, to invest appropriately in social development programs, to obey the laws, and to pay your taxes. Thus I think that the media perception of Venezuela as a foreign investment destination and the reality on the ground as evidenced by the government's positive actions is probably the biggest area to be dealt with. It's an interesting situation because by definition, if there is a gap between perception and reality, then that is a potential value opportunity. Where perception and reality are exactly the same, there is by definition no value opportunity. So it's one of the ongoing things that we and other companies that are active and operating in Venezuela, like Hecla, a US mining company, Gold Fields, a major South African mining company, and ourselves are trying to get people to look at. Look at the facts. Look at what the government does as compared to what the media portrays the government as saying they are going to do, and judge for themselves as to whether fact and perception are the same or whether there is a difference that therefore offers an opportunity to investors. TWST: How tight to the recent run-up in gold pricing do you feel your own valuation should be attached? I'm sure in one sense you smile when you see gold prices advance, because it means your ultimate spreads and margins look better and better. Mr. Bruce: We are again very fortunate. One of the great strengths and advantages of being in a country like Venezuela is that we have the luxury of accessing the world's lowest energy costs in the form of hydroelectric power and fuel. Those are the two components around the world that you've seen go up very materially on a cost basis and eat into gold companies' margins. So we have the best of both worlds. We are delighted to see the gold price reflecting its fundamental values in a jurisdiction where we are not subjected to the same sort of energy cost increases for fuel, and power that most jurisdictions are. Although I'm sure our share price has benefited from the higher gold price, I think it's a common perception in the investment community that we have not fully reflected the consequence of the gold price moving up to these levels because the market, quite rightly, is focused on the issuance of this final environmental permit. Consequently, we are very much an event-driven company at the moment. The gold price going up to these levels is a very positive and supportive backdrop, but we've not been taken full advantage of it yet because we're waiting for the permit, but I believe that when this permit comes out (and we believe it will be coming out in a timely manner) there will be an opportunity for us to see a step up in the valuation of the company because that permit obviously represents the last government permit we require. That puts the company in a great position to play some catch up on the gold price as well. TWST: Are there any questions at all with respect to where you can sell your production? Mr. Bruce: No, there doesn't seem to be anything material. For over a decade Crystallex has operated gold mining operations in Venezuela,. Hecla runs and operates two gold mines in Venezuela. Gold Fields has just come in and bought the Bolivar Gold Choco 10 operation. There are various other gold mines, so there are many examples that the system works in terms of the rules and regulations. There doesn't seem to be anything in any way insurmountable or remarkable about the process. TWST: Would you give us a quick overview of the level of other exploratory endeavors in Venezuela? Mr. Bruce: Over the last two years, we've conducted two drilling programs at Las Cristinas targeted at increasing the reserves, and we've been very successful. I think between the two programs, we've probably added 2 to 3 million ounces to the reserves. We are continuing to look at further drilling opportunities and I'm sure that we will have some more drill work at the Las Cristinas in the course of this year, looking at trying to capture either more resources and thereby giving us more potential to convert those into reserves, or taking existing resources and converting those into reserves as well. Certainly, we have other exploration programs underway at our existing operations in the El Callao district, which is about 110 miles north of Las Cristinas, and that is very prospective terrain. We will then be conducting drilling programs there in the balance of the year, and we are doing so in the hope and expectation that we might generate something of material economic interest there as well. TWST: What is it that you feel compels investors to not only review Crystallex, but to include it as part of their longer-term investment strategies? Mr. Bruce: I think the opportunities and the attraction to the investment community boil down to a few simple elements, one of which is growth. As I said earlier, if we take the company as it stands today, we produce about 50,000 ounces a year. We are currently producing that at over $400 an ounce from our small operations in Venezuela. If we look at the Las Cristinas Project, in 2008 on an annualized basis, we could be looking at an operation producing 300,000 ounces a year. So that represents a six-fold increase in our gold production output over the next two to three years, which is obviously a very radical increase. But, over and above that, our operating cost will also drop down to somewhere around that $160 per ounce level. So the generation of cash flow and profits is going to go up by a much bigger multiple than that six-fold increase in production because our unit cost will have declined so dramatically. Our expectation and objective is to launch our expansion program to double the size of the operation to 40,000 tons a day. That would see us being a company producing in the region of 500,000 ounces a year. On that basis, four to five years from now, you would be looking at a company that would be producing 10 times as much gold as it is today. Again, you would be looking at a company whose multiple growth in cash flow and profits would be much greater than that 10 times production increase because our cost would be coming down from in excess of $400 today down to somewhere around $160 an ounce for the first four or five years. This tangible growth profile that results from the remarkable reserve base that a company of Crystallex's size has due to the Las Cristinas project. If you look at all the major North American based gold mining companies like Newmont, Barrick, Goldcorp, Agnico-Eagle, Glamis, Kinross, Eldorado, Bema, and Meridian, we're actually the fourth largest company in terms of reserves net of recoveries (ranked by Mineweb.com). That's an anomalous position, which then translates into a very low valuation relative to most of the industry in terms of our market capitalization per reserve ounce. So the value opportunity that Crystallex provides the investment community is our ability to grow this company by multiples of 6 to 10 times in terms of production over the next three to five years, to grow our cash flow and profits by even greater multiples than those, and to collapse that value gap with the rest of the industry and pass that reward on to our shareholders. TWST: Are there any other thoughts or issues we should touch on? Mr. Bruce: I think the important thing for people to do is to do their homework on operating potential assets in Venezuela. Look at what actually happens rather than what the media portrays it to be. Look at the benefits of building a mine, particularly where we are in Venezuela with some of the world's best infrastructure and with the lower risk in the sense of not having to build your own roads and power lines. It's all there on our doorstep. We work and operate in the world's lowest energy cost jurisdiction. Those are tremendously competitive advantages, and that's where people need to differentiate between perception and reality. TWST: Is there anything on the financing agenda that we should discuss? Mr. Bruce: Once we get the permit, we will be moving forward on the project promptly. I believe that financing a deposit of this quality is very manageable. Obviously, at these kinds of gold prices, even if you are reasonably conservative using a $500 an ounce, this project is eminently financeable. We've already spent a decent portion of the project cost on our major equipment. Most of the equipment and supplies that we need in the short to medium term is sitting on the docks ready to go. TWST: What are the criteria you look at in terms of funding or financing outside the company versus issuing warrants to current shareholders to reward them? Mr. Bruce: Demand for capital changes as market conditions change and financial markets react to their environment, and we will always examine all financial markets that may be available to us at the time. TWST: Thank you. (DWA) TODD BRUCE President & CEO Crystallex International Corporation On June 29th in a Bloomberg interview Nora Delgado reiterated that the decision will be made in the very near future here is the excerpt: Venezuela May Rule on Mining Environmental Permits (Update1) June 29 (Bloomberg) -- Venezuela may decide whether to grant environmental permits for companies developing the country's largest gold deposits by the end of next month, Deputy Environmental Minister Nora Delgado said. The environmental ministry, in conjunction with the heavy industries and mines ministry, is evaluating permits for the Las Cristinas field, which is being developed by Crystallex International Corp., and the adjoining Las Brisas field, which is being managed by Gold Reserves Inc., Delgado said in a telephone interview. ``We are very close to a decision,'' she said. ``We should have one by the end of next month.'' She declined comment on whether the companies would receive the permits, the last step both need to start mining gold from the two fields. Venezuela froze the environmental permit process last year as the government began a review of mining policies. Delgado said the ministry is again granting permits. ``The last one was granted 15 days ago,'' said Delgado, without naming the recipient. >b>During the last week of July MIBAN met with a number of key players in the mining Industry as well as representatives of the regions affected by the new mining legislation. This story was not picked up by the North American Press yet and is key as it clarifies that the new legislation will not affect KRY as stated by Jose Ramon Rivero. August 1, 2006 Only inactive mining contracts, concessions to be voided under new Mining Law El Diario de Guayana (Isidro Casanova): National Assembly (AN) Mining sub-committee chairman, AN deputy Jose Ramon Rivero has made clear, to an assembly of miners at Plaza Bolivar in Tumeremo, that the only concessions to be voided will be those pertaining to inactive mining contracts. translated by VHeadline.com's Beatriz Socorro Many miners from various municipalities gathered at the assembly where AN deputy Jose Ramon Rivero made some important aspects of the new Mining Law clear, pointing out that it do not contemplate the voiding of active gold mining concessions, but rather those that have not been active for the past few years. Fielding an avalanche of questions from several reporters, Deputy Rivero stated: "Let it be clear that what has been proposed in this project is to void those contracts that were issued by CVG up to 1999 and which should have been active. Concessions for which a serious attempt has not been made to operate, will be voided since they constitute "abandonment" under State Law. Mining Law Article 99 stipulates the rights of concession holders when it states: "When the present Law comes into effect, the current mining concessions will still remain in effect until they reach their expiry dates." Miners had gathered at Plaza Bolivar waiting for someone to address their concerns since questions have risen as a result of information released by the media which claims that the project to void concessions is a strategic attempt to lead the mining industry towards joint venture partnerships between the mining companies and the State, in which the State would hold 51%. The media's (erroneous) version gave vent to fearful speculation. Attended the meeting, Sifontes Mayor Marlene Vargas defended both large and small-scale miner's right to continue to benefit from gold mining ... her only request is that the rules of the game be clarified. Meanwhile, deputy Francisco Jimenez, president of the Mining Commission (on behalf of the Regional Legislative Council) was also present. Prior to the meeting he spoke with this reporter and while not voicing his personal opinion, he suggested that we should wait for deputy Rivero's statements because: "It could very well be that we are dealing with a misunderstanding." Prior to the meeting, discussions were held with gold industry representatives and the (local) Chamber of Commerce arguing that if the concessions and methods of procuring gold are changed, the economies of the municipalities in the South will collapse. We asked deputy Rivero how this would affect the Crystallex mining company which operates at Las Cristinas. He answered "Las Cristinas and the Las Brisas projects are two different things ... the National Assembly is not dealing separately with these cases ... the projected new Law does not affect companies whose development pertain to the Executive branches..." Rivero also pointed out that these projects do not fall under the "abandoned" category because they have remained active ... even though they are not producing at this time. Their concessions and active mining contracts will remain in effect. Support for small scale miners Mayor Marlene Vargas has proposed to the National Government that the two projects, Las Cristinas and Brisas del Cuyuni should resume operations and also proposed that specific claim areas be granted to small-scale gold miners. She explained that the municipalities would face severe economical problems if the concessions and contracts were to be allowed to expire. "Voiding the contracts would hurt small-scale mining," she said. "The mining industry generates manpower ... I hope the environmental permits will be granted for their projects. This Citizen Assembly must be heard ... I have requested the presence of Dr. Hortensia Sanchez, from the People's Ombudsman's Office, to insist that this assembly has a binding official character. The Industry Speaks Gold industry representative, Jose Manuel Rodriguez gave some examples as to how private enterprise brings about social benefits adding that the problem resides in the term "precarious." The present debate was brought about by both the present Mining Law and the projected Mining Law ... which proposes to bring into effect what is known as "precarious titles" for small-scale miners. We asked deputy Rivero: "Why use the title "precarious" which is similar to "poverty" for the small-scale miner?" To which he answered: "The term 'precarious' is being used because the State owns the mineral reserves. This being the case, the Bolivarian Constitution of Venezuela must be taken into account. The State retains the rights of exploitation in the mines to guarantee their proper functioning. As to the 'precarious titles, the State will support small-scale miners and provide them with financing and training as well." "This is a citizen's assembly in the midst of a national debate ... we are willing to listen to suggestions that may be appear in the final text." http://espanol.vheadline.com/readnews.asp?id=64829 On August 1, 2006 a poster on this board named Topcat did his own interview with Richard Marshall from Crystallex, Topcat represented the board with a number of key questions that Mr. Marshall did his best to answer here is the post of the questions and answers: (TopCat49) thankyou for your inquiry. I have embedded comments to your questions into your email below. The comments should come through after each question answered in blue ink. Some of the answers may be short but I can only answer questions with what is in the public domain and will not speculate on the intentions or thoughts of government officials. Regards, Richard Marshall VP Investor Relations Crystallex Interbational Corporation Dear Mr. Marshall I represent approximately thirty committed investors from the Stockhouse Bulletin Board for KRY, Crystallex stock trading on the Toronto exchange. Should you wish to verify this fact by visiting the board, I post under the moniker, TopCat49. You will see there my efforts at compiling the following list of questions and also members on a list there authorizing me to communicate with you on their behalf. A poster to that board has compiled a list of committed KRY shareholders, who post under monikers, along with their town and province of residence. That list is available should you require it. What follows here in the form of 20 questions are their concerns which we hoped that you could address. I can assure you that you have here some very experienced and devoted investors who would like your assistance to gain insight and clarity on the Crystallex story. If there are questions which because of securities laws or sensitivity you cannot answer please let us know about those reasons. My contact coordinates follow the questions. Although I am releasing my identity to you for purposes of this communication, I wish to remain anonymous to the KRY Bulletin Board posters. I will be trying reach your office by phone over the next few days. I phoned today but your In Box on your voice mail is over full. 1) At the High Level Segment of the 14th Session on Sustainable Development at the UN, 11 May 2006, Nora Delgado, Vice Minister of Environmental Ordination and Administration for Venezuela, declared Venezuela's commitment towards the objective, "to save the planet", through the adoption of a neo-liberal model for environmentally sustainable development that is both humanitarian and socialist. She stated, "Our Bolivarian constitution highlights the coresponsibility of both the state and communities in the preservation of our environmental patrimony". To what extent does Ms. Delgado's mandate to save the planet through cooperation with indigenous communities and nongovernmental groups such as The Association of Friends of the Great Savanna (Amigransa) who are committed to protecting the Sierre de Imataca and to clear the Caroni River Basin of mining and redeploy some 70,000 artisinal miners in that area compete with the agenda of Crystallex to acquire its environmental permit? Answer: There's nothing in the environmental code or permitting process to date that suggests we have an uphill fight for the MARN signoff for Las Cristinas and thus we continue to believe that it remains a function of time. 2) More specifically, in your opinion, is Ms. Delgado's department sufficiently well appointed and funded to achieve these objectives on a timely basis? Answer: MARN is handling the Las Cristinas permitting process in a professional manner. 3) Where, in the opinion of Ms. Delgado and her ministry, is the granting of the environmental permit to Crystallex in order of priority in relation to these massive social and environmental issues? Answer: It would be inappropriate for us to speculate on MARN's behalf. As noted above our experience is that MARN is handling the Las Cristinas permitting process in a professional manner. 4) Further in that regard, do the locations of Crystallex properties and ore bodies impinge on the controversial environments to the extent that Ms. Delgado will be frustrated in the timely issuance of the permit because of her Ministry's declared commitments to indigenous peoples, non-governmental environmental and social groups and environmental protectionism generally? Answer: The Las Critinas project lies in areas of historical approved mining activities. Local communities, leaders and Indigenous tribes have publicly expressed their support for the Las Cristinas project by both formal petitions and delegations. 5) Your department, Mr. Marshall, is no doubt aware of remarks made by Ms. Delgado in a recent telephone interview regarding the issuance of the environmental permit by the end of July. Do you have any reason to believe that the permit will not come by that time and if so, has your department made inquiries as to the nature of the delay and made further inquiries as to a realistic time table, I repeat, a realistic time table, for the issuance of the permit? Answer: I believe Vice Minister Delgado was quoted as suggesting news regarding the permitting for the Las Cristinas Project and the neighboring Brisas Project "could" come by the end of July. Timing of government actions is always impossible to handicap by the recipient of such governmental acts. We are in the Administrative Phase and believe we'll see news sooner rather than later. 6) Mining and Basic Industries Minister Victor Alvarez is quoted as saying, "this country is tired of always having to send signs of tranquility to the market... Mining contributes just 0.72 percent to the gross domestic product. Now we want to send signs of tranquility to our citizens." This would seem to suggest a somewhat adversarial point of view toward corporate interests in Venezuela. What proactive activity has Crystallex undertaken to ameliorate this antagonistic view and raise its image in the perception of Venezuelan administration? Answer: Our Corporate actions speak louder than words. Local communities have benefited from our "Social Programs". We have built housing for local communities, built water treatment plants and sewerage delivery systems. More detail can be viewed in the Crystallex 2005 Annual Report (page 10 thru 12). Our community programs are on going in the KM88 area and the El Callao District. We are actively engaged with every organ of the state that impacts on our existence. I would draw your attention to the recent press articles in Venezuelan media containing very positive statements by the Marlene Vargas, the mayor of the Sifontes district where Las Cristinas is located and by Deputy Rivero, the head of the mining subcommission established to manage the passage of the new amendments to the mining law which reflect anything but an antagonistic approach. I will forward copies of the articles to you for your perusal if you so wish. 7) Does this conspicuously antagonistic approach to public corporations doing business in Venezuela lead in turn to apathy with regard to the expeditious processing of applications such as the environmental permit? Answer: Permitting in most jurisdictions around the world seems to be taking longer now than it did several years ago. It is a phenomenon observed by many in the industry and investment community. We continue our efforts on a daily basis to bring the MARN process for Las Critinas to a timely conclusion. Also I would refer you again to the comment provided for question 6 above. 8) To what, in your opinion, do you attribute the erratic and anemic performance of Crystallex shares in the stock market, especially relative to some of its peers, for example, Gabriel Resources? Answer: I have pasted below (hopefully it comes through in the email) a chart comparing the stock performance of Crystallex alongside, Gabriel, Eldorado, Nevsun and the XAU (Gold & Silver Index). Our 6 month performance falls in the midle of the group. The market and investors remain focused on the MARN permit. 9) Are you aware of short interest in the market over the past year around Crystallex shares? Answer: Yes we are aware of the Short interest in the story. 10) What have you done in the media to combat this short activity and preserve the equity of the shareholders? Answer: We continually visit with the investment community to update tham on our progress and plans, and attend relevant conferences and symposiums. All information discussed is in public domain. 11) Do you consider yourself fully empowered to deal directly with the world media or do you have to clear everything you say and do in that specific regard through higher channels? Answer: The Company is set up with Official Spokespersons for the media. Our spokespersons report directly to the Disclosure Committee. 12) Why do you not promote this stock by issuing positive and timely updates and findings? Answer: We issue press releases in accordance with the Corporate Disclosure Committee guidelines in terms of ensuring that the market is advised of material events and developments which is in compliance with the guidance and requirements of the relevant regulatory agencies which view streams of press releases on non-material issues in a very negative light. 13) Why in the whole month of April, during a very critical waiting period was there not one single news release on the Crystallex Website? Answer: We received the MIBAM approval in Late March and moved into the final administrative process ing with MARN. There was noting material to report in April. 14) Why is it that the only time we see our management making public appearances or interviews is in reaction after some negative event has occurred rather than in a consistently positive and proactive manner? Answer: Management appears regulary at trade shows, conducts interviews with the media, attends investment conferences and regularly visits analysts and the investment community. 15) Why do we never hear about our PR Manager attending gold shows to promote Crystallex? Answer: So far this year Managment has attended and presented at investment conferences in Canada, the US and Latin America. I believe on average we attend between 5 and 10 investment conferences per year. 16) Why don't we have tele-conferencing occasionally, to keep us informed of recent developments and events? Answer: It is something the Comapny has discussed and considered 17) Why is it necessary to conceal the identity of the Private Placement subject? Answer: I can not comment beyond what was released in the press releases relating to the financing and what is in public domain. 18) In as much as Crystallex management had previously indicated that financings undertaken prior to July of this year would be adequate for financing the needs of the corporation for approximately the next 12 months, and consistent with rules of full discloser to shareholders, for what will the additional $32 million of the July 27th underwriting through Orion be used? Answer: Not aware of any statements by Management that indicated Crystallex had sufficient capital for Calendar 2006. The prospectus provides the usage of funds from the financing. 19) Is there any likelihood that Crystallex may benefit from the redistribution by Venezuelan government of concessions in the aftermath of the August 15th legislative revisions and would that require significant amounts of capital? Elaborate, please? Answer: Our focus remains the successful development of Las Cristinas and its development will take much of our attention for the foreseeable future. 20} Does the company have any reason to believe that the final environmental permit will be issued before the presidential elections in December, and if it does, would it be able to share the reason? Answer: Timing of the MARN permit remains in their hands. We believe, based on guidance, meetings with MIBAM, CVG, MARN and other Officials that we should hear news sooner rather than later. We are not aware of anything outstanding or any information that they need to complete the process. Patience is an absolute requirement holding KRY but then again the gain this stock will give you as this story play’s out is worth the wait. If you are a buyer now the timing is perfect if you are a seller you will kick yourself till next Sunday when the permit is granted. Here is my very first post on the KRY board, the same holds true today: I have been watching this bullboard for some time now and have held KRY for approximately 8 months. I though I would share with you a rough post permit value of KRY that I received on April 10th from my advisor (PHD from CIBC.) An American Stock exchange conference on March 30, Crystallex listed Bema, Boliva and IAMGOLD as their peer group. They also cited the market cap per oz. of reserve as published by Mineweb. On the watchlist on the Mineweb website on April 10th, Bema was trading at $634 per oz proven and probable, Bolivar was at 270, and IAMGOLD was at 260. If we eliminate Bema as an outlier then Bolivar and IAMGOLD average $265 market cap per once of reserves. Crystallex proven and probable is 13.6 million oz reserves at $400 US per oz, so were Crystallex to trade at $265 per oz, that would give a market cap of $3.604 billion US. Divide by 255 million shares fully diluted gives $14.33 US per share tiem 1.15 = $16.47 per share canadian. This is a pretty rough calculation and the market cap per ounce has slid a bit since April 10th, so lets deduct a geopolitical/market cap factor of 30% and we are still over $11.00 Canadian a share. Have patience, the risk factor on this one is not near what it was when it was trading at similar levels one year ago. August 8, 2006 This next post summarizes some pros and cons of owning this stock, it came from the Yahoo board and was responded to by Goldbuggy our resident KRY board Chair. Let's do a Ben Franklin and see where we're at: POSITIVE 1.KRY has received approval for its feasability study, the last stage before the environmental permit, as well as a permit for a quarry to supply LC. 2. MARN has said they are once again granting permits 3. The government has said KRY's contract will not be affected by the new mining laws 4. KRY's MOA (Mining Operation Agreement, http://www.crystallex.com/images/uploade...)is for an initial term of 20 years 5. In the MOA, KRY must pay 3% of gross monthly gold production to CVG and the 3% Exploitation tax. Very low rates which could be raised. 6. KRY has lived up to its obligations in VZ by building a hospital, roads, etc. There is no question about compliance with the MOA. 7. Las Cristinas is one of the world's largest and lowest-cost gold deposits with a projected life @ 20000 tons per day of 41 years. 8. The start-up interval from the date the permit is approved is 18-22 months, i.e., cash would start flowing fairly quickly. 9. The prospects for the price of gold are very strong, given the weakening $U.S., desire by central banks to add to reserves, and declining world production. 10. KRY would undoubtedly become a takeover target if the permit comes. A conservative guess, based on 175/oz for gold in the ground, is $9.52 per share for 250 mil o/s, $7.93 for 300 mil o/s. Bolivar Gold, operating a new mine in VZ, was bought for a similar amount this year. 11. KRY has alread spent $100 mil with another $200 mil to be financed. Even if they had to do another equity issue after the permit, at $8 per share thats only 25 mil new shares plus maybe 5 mil warrants as a kicker. 12. KRY hit 6.25 when it looked like the permit was near. It will surely go higher on the news. 13. Technically, the stock price action is neutral, with good support around 2.60. NEGATIVE 1. This is the biggie: the VZ discount. KRY is operating in a country run by an anti-U.S. fanatic. Chavez could change the MOA by shortening the term, reducing the revenue sharing, increasing the govt's take, etc. This would have an economic cost to VZ if the changes were major ones, i.e., don't do business in VZ. 2. KRY is a financially weak company. Frequent equity deals are providing much of the cash flow. Any lengthy delay in the permit process will produce more dilution. The fact that they can still do equity deals is a positive, however. 3. KRY is a news-driven, extremely volatile stock. June 12, 06: open 3.86, low 1.95, close 3.04. This makes it very painful at times to hold the stock. Summary: I think there is very little doubt KRY is going to get the permit. The big question, as always, is what will the deal with VZ look like when it's finally on paper? Sentiment : Hold Gold Buggy's response: Very conservative indeed using $175/oz figures on a very low cost future producing mine like Las Cristinas. The first 5 years production costs are estimated at $160/oz. Adding the two together $175 + $160 and you end up with a $335 cost. The average quoted cash costs for gold production for 2005 were estimated by GFMS at US$269/oz., with total cash costs (including depreciation, amortisation, reclamation and mine closure costs) at US$339/oz. So if the average production cost for a gold mine is say $270, they are then only paying $65/oz. premium for our P&P Gold Reserves. To top it off, the 13.6Moz. P&P Reserves that he used in his calculation was based on a gold price of $400 US. At $550 US, which we exceed now by about $100, the P&P becomes 14,729oz. of Au. This is an addition "One Million Ounces". If you throw in that extra 1Moz. of Au into his deciphering, you end up that they would only be really paying $160 US /oz., and not $175. So $160 Buy-out + $160 Cost = $320 USD to produce one ounce. Since on average they would have to pay $270 to mine there own mine they would only be paying $50 more per ounce of gold for LC and would be increasing their gold reserves by 14.7M ounces. They would easily get this $50 back and probably much more just on the share price appreciation from these extra reserves. But getting back to the calculation, he also did not mention either or include in his calculation the additional 8.5Moz. of Au in the Measured, Indicated, and Inferred Resources Category. Does this not have some value even if it is not proven yet? If you give this category $95 /oz. that is $807.5M he is getting for free. I won't even mention the one billions pounds of Copper, which KRY has first rights to, but chose not to mine it then as Cu prices were only $0.64/lbs and are now $3.66/lbs. Since we also already spent $100M towards construction he should add that in to, as the new owner would, so now we see he would be getting $907.5M for free, plus a very possible future 1B-lbs. copper mine. His calculation used a potential buyer paying $175/oz for 13.6M ozs. The buyer then would be paying $2,380M for Crystallex. If we now subtract this $907.5M we gave him for free, he is then really only paying $1472.5. So for Proven & Probable Reserves of 14.729M he is paying $100. Add this $100 to the $160 for operating costs and he is looking at total operating cost of $260. This is perhaps $10 less than he might be paying now on his average mine someplace else, and in which he did absolutely nothing to bring this mine into full development. There is a Venezuela Factor but I still think his calculation is ridiculously low. Consider that someone else paid for all the social programs for years while the mine was being developed and took all the risks in the exploration, feasibility studies, development, permitting, and finally after waiting for the final permit, was now ready to start construction. A new mine like this can take 6 years and probably much longer to get to this point, and there just isn’t that many mines like this around. He also neglected to not add any money in this buy-out for the Revemin Mill and Tomi Mine, which is a fully operating mill and gold producing mine, having 50,000oz Au/Yr., and which also has its own separate Gold Reserves. Crystallex also has La Victoria Mine and several exploration properties that also should add some additional value to this figure. One last thing to mention in his calculations is that all his figures are in US Dollars. You would need to add at least 10% (although it is higher right now) to the share prices to derive at Canadian Dollars. I will say one thing though. I certainly agree that he was very conservative in his calculations given that even more risk is taken out of the Venezuela Equation Factor after the issuing of the Final Permit to KRY. This government does not have anywhere in their history a record of taking gold mines away from gold miners without just cause. The use it or lose it within 7 years law seems fare to me. I am sure this law applies in the USA & Canada to. After all, the goal was clear from the start of these concessions that the objective was to create employment and social programs for the people, and to exploit minerals within 7 years. Or at the very least prove you are activily working towards that goal. Chavez gave Dome 2 more years for free. It was not set up to hold during high mineral prices as a reserve in your books to improve your stock price. Perhaps only so you can raise money to develop or buy a mine someplace else. August 11th, Todd Bruce reiterates in quarterly report the nil-effect of the mining legislation. TORONTO, ONTARIO--(CCNMatthews - Aug. 11, 2006) - Crystallex International Corporation (TSX:KRY) (AMEX:KRY) today reported unaudited financial results for the quarter ending June 30, 2006. All dollar figures are in US Dollars unless otherwise indicated. Commenting on the Company's second quarter activities, Todd Bruce, President and Chief Executive Officer of Crystallex said, "We are pleased to note that the Venezuelan National Assembly reiterated its support for the rapid development of the Las Cristinas project in May, 2006 when the Economic Development Commission, a Permanent Commission of the National Assembly, petitioned the Ministry of the Environment and Natural Resources ("MARN") in support of Crystallex commencing the Las Cristinas project as soon as possible." Mr Bruce also noted that, "Regretfully the Company's Las Cristinas project was once again subjected to considerable confusion and controversy by portions of the media towards the end of May 2006, when the Ministry of Basic Industries and Mining ("MIBAM") submitted a draft mining law to the National Assembly. This draft bill represents the culmination of the process commenced in September 2005 by the Government when it announced its intention to amend the mining law to provide more effective control over the Nation's mineral rights in terms of targeting those properties that are idle due to the holder's non-compliance with the terms and conditions of his underlying title." The Mining Sub-commission, chaired by Deputy Jose Ramon Rivero, was mandated by the National Assembly to manage the legislative process for the bill. Mr. Bruce continued, "Just as happened in September last year following the original announcement, segments of the North American media created a great deal of confusion and controversy following the submission of the draft mining law by raising the spectre that the bill would have negative consequences for the Las Cristinas project. The media correspondents suggested that one of the new exploitation models incorporated in the draft, namely the joint venture or mixed company in which the State would receive at least a 51% stake and the private sector the balance, would be forced on to the Las Cristinas project either because the Las Cristinas project was viewed as being idle or because all CVG contracts were going to be forced into this new model." "I am thus very pleased to draw investors' attention to Deputy Rivero's unequivocal rebuttal of the media's misinterpretations of the bill's general objective and its impact specifically on Las Cristinas recently made at a public function in Bolivar State, Venezuela on July 31, 2006," stated Todd Bruce. "Deputy Rivero reiterated that the bill was not aimed at active properties but rather at those that had been inactive or abandoned for the past several years. He noted that the only CVG contracts targeted for termination under the new bill were those granted up to 1999 by the CVG and which should have been active. In particular Deputy Rivero noted that the Government does not consider Las Cristinas to be an abandoned or idle property because it recognises that Las Cristinas has remained an active project being advanced towards production. Consequently the Deputy observed that such mining contracts, like the Las Cristinas one issued to Crystallex by the CVG in September 2002, will remain in effect." Mr Bruce added, "Deputy Rivero's statements vindicate the guidance consistently provided by Crystallex since September of last year, when the process to revise the Venezuelan mining law commenced, that Las Cristinas is not threatened by the draft bill. The company's guidance has followed the advice Crystallex has repeatedly received from both Venezuelan counsel and Venezuelan officials. In addition to dealing with the above controversy during the quarter we continued to focus our efforts on the pending Environmental Permit at the Ministry of the Environment and Natural Resources ("MARN")." Subsequent to the June 30, 2006 reporting period, Crystallex successfully raised additional capital through an early warrant exercise generating proceeds of US$ 6.04 million and closed a Can$ 32.4 million unit financing on August 11, 2006 which was substantially oversubscribed. The following is a summary of a phone conversation Donwys had with Richard Marshall on Aug-14/06 regarding some questions that arose out of the recent quarterly report. I called Richard this morning and first want to say that he is a very freindly and helpful person, willing to answer as best he can within the boundaries that surround him. Regarding the National assembly going on vacation and whether it will affect the permitting process he replied with a flat "no". This is the more senior officials taking their break, all ministries and officials within that keep the gears and processes moving are still working. Government does not shut down. I suppose it's like our parliament taking their summer break, that doesn't mean our agencies shut down also. So, Richard said this is not a hindrance. Richard also said senior KRY officials went to Ven about 10 days ago, and KRY officials meet with the Ven official on a weekly, and sometimes on a more often basis. He said KRY is quite persistent with making sure the Vens have everything they need and that the permit process is moving. He stressed that it is in the administrative phase and is moving. It is being processed through the Caracas office and it is a very busy office and the permit is at the stage where nothing further is needed from KRY, MIBAM, or any MARN officials. Just a matter of making it through the offices of the pertinent people now. Regarding why no explanation was put in the report clarifying the gold sales suspension, he said it is a legal one that involved explaining the Central banks policy when probably they are not the best ones to do that. He said lawyers have different views on how to handle this and if it is done wrong or innaccurate there could be negative repercussions in that regard. He said this suspension had to do with bank policy shift in their investing goals also, and was an accross the board decision at the time. It affected all gold producers not just KRY. I asked if it happened before and he said it did back in the late 90's As far selling gold specifically to the Central Bank Richard said it is a very good program because there are no insurance issues with transporting gold (Vens pick it up), they get the 24 spot price and it works very well and simply. KRY already can sell gold internationally, there are no restrictions on them that prevent them from this. They just need to upgrade their licence through the government to pursue this export option. Richard has no doubts that this will be done and is in the process. He also pointed out that this suspension is absolutley nothing to worry about. The bank was just revamping some policy and have reinstated the buy program fully. Hecla mining exports all their production out of country and has run into a bit of trouble regarding some reporting issues surrounding currency exchange rates and how it affects the taxes payable. Staying in the government program avoids this. He said the Ven system is a good one. The Ven Govt gold program states that if you participate in it you are obliged to sell at least 15% of your gold to the Vens, the rest you can sell internationally, but then you have transport and insurance issues that you can avoid if you sell all to the Vens. Once the license is upgraded KRY will have the option of selling to the open market (anything over 15% of production) or all to the Vens if that is the way they want to go. KRY wants to stay in the Govt program as it keeps currency and tax issues away and at the same time lets them sell globally. On another note I asked him if in his opinion this permit could be used as a political tool. He replied that all the officials within the Ven agencies that they are in contact with assure them that this permit is not tied in any way to a political agenda of anyone. Well, let's hope so. One last question I put to him was why they don't have more press involvement. His answer was one that I feel the same about myself. As a private company doing business in Venezuela, they have to err on the side of caution and diplomacy, respecting the systems they have in place there, whether cultural or political. You just can't go around explaining and saying things in an area you are not authorized or possibly totally and competely informed about. Can get in some hot water or controversy doing this. Diplomacy is key here, and maintaining a positive relationship with all levels of government is the aim of management. Richard feels the same as alot here that this company is being used as a pawn in a sense by certain forces to put a negative spin on Venezuelan investment. I agree totally with that and I suppose it's just time that will prove things in a positive light as long as this project is completed in a positive and respectful manner by the Vens and KRY. My belief is that this will be the case. It's just a matter of whether a person wants to stick it out to fruition. As for myself I'm sticking around. Here's the latest addition to this summary posted by commod1, a glowing recommendation from Bill Cara, a renowned analyst. check out the following link: #1 http://www.billcara.com/archives/2006/08/crystallex_a_lo.html #2 http://www.billcara.com/archives/2006/08/crystallex_mana.html Here's a little tidbit infoejoe posted today Aug-16 regarding takeover candidates. World’s top gold stocks By: Barry Sergeant Posted: '16-AUG-06 14:32' GMT © Mineweb 1997-2006 In previous analysis, RBCCM identified a plethora of gold stocks listed in North America that may become takeover targets, given the rush by Tier I and Tier II producers to find “replacement ounces”, as demanded by investors in the modern era. That study suggests incredible energy on the part of those participating in the new “gold rush”, and a willingness to seek and mine gold in every corner of the earth. Beyond most stocks listed in the “emerging producer” category, the further list of gold juniors includes, in alphabetical order: Comaplex Minerals (Nunavut); Crystallex (Venezuela)... http://www.mineweb.net/gold_silver/932789.htm August 24th, 2006 On Friday August 25th we all heard from an Oilandmineral post that the Vice Minister of the Environmental agency (MARN) had been kidnapped!! Apparently Mrs. Culcver Lemon's Ghost started to mess with our project again.....Turns out it was less serious that first thought and the miners opened the road where access was needed for Nora to get her butt back to Caracass. Miners kidnap vice-minister of MARN Nora Delgado SAILÚ URRIBARI NUÑEZ Guayana city Alleging breaches in the agreements reached after the restoration of the alliance town - governments, the miners of the Icabarú sector retained to the vice-minister of the Atmosphere, Nora Delgado, avoiding their exit of this town of the municipality Great Savannah. Miners and natives assured not to allow the exit of Thin until as much do not settle down agreements lasting in mining matter in the zone. According to expressed by Vicente Ayar, the miner of the Paragua, the vice-minister became present in the place assuring that from already totally expendio of fuel was prohibited and the activity of mining operation in the zone. “That was not the decided thing and until real agreements do not settle down we will not let it leave”, Ayar in name of the population said. The situation took to that an encounter pautado for this Friday in the locality of the Paragua was suspended in which was hoped the delivery of credits to give reins to the plan of mining reconversion in the zone. The kidnapping began when the vice-minister arranged itself to approach the airship that would take of City Bolivar to it. To last hour one inquired that last night workers of the mining initiated protests closing the highway before arriving at Santa Elena de Uairén. Last night, also one inquired that into the arrival of a ministerial commission from Caracas, to treat this subject. August 26th, 2006 Miners free Nora Delgado From vheadline spanish: Miners reopen passage in Brazilian border after agreement with authorities City Bolivar, 25 Ago. ABN (Oscar Ossa). - To the 2:30 of afternoon of this Friday the barricades put by artisan miners in the access road to the population of Santa Elena de Uairén were retired, state Bolivar, border with Brazil, according to informed via telephone the head of the Theater of Operations Nº 5 of the National Armed Forces, general Francisco Enrich Trujillo. The official indicated that the miners who are against the decision of the National Government to prohibit the artisan extraction of gold and diamonds in the river basin of the Caroní river accepted to raise the barricades, placed at night of this Thursday in the main highway 10, that Bolivar communicates to Santa Elena de Uairén with the rest of the state. The decision was taken after remembering an encounter between the miners and authorities the Ministry the Atmosphere and the Interior de Bolivar. These civil employees were sent to explain the miners, the details of the process of prohibition of the mining and the alternative to them of labor reconversion offered by the Venezuelan State for the men and women, who during decades depended on this economic activity. In hours of afternoon of this Friday one summoned the general assembly of miners and authorities in this population, whereas another similar encounter took place in the neighboring population of Ikabarú, where is from the day Thursday the vice-minister of Territorial Ordering, Nora Delgado. It clarified to the military leader who at no moment the Thin vice-minister was object of kidnapping or unavoidable retention on the part of the miners at the time of approaching the military airplane that would bring from return to City Bolivar the day Thursday in afternoon, as they reflected some national and regional mass media. The civil employee and her equipment decided to remain in Ikabarú before the reclamation of the miners who request greater information on the process of labor reconversion, as well as the necessity that the Government listens to his expositions. The head of to-5 indicated that the vice-minister is in perfect state and that threat does not exist some against its integrity nor the one of the civil employees who accompany it. Nora Delgado has engaged in a dialog with the miners throughout the day, in the search of a solution that allows to give continuity to the reconversion process, without generating disorders public nor a situation of unemployment in the zone. Also, he as much showed that in Santa Elena de Uairén as in Ikabarú are personeros of the bolivarense Government, like the president of the State Committee of Mining, Armando Jhon Log, and the commander-in-chief of the police of Bolivar (Pobol), colonel Julio Caesar Fuentes Mazulli. The process of mining reconversion implies the total suspension of the mining in rivers and territories of the river basin of the affluent rivers of the Caroní, as it is the case of the rivers Paragua, Caura, Ventuari and Aro, among others. The Venezuelan State, through Ministry of Atmosphere and the Basic Ministry of Industry and Mining (Mibam) initiated a project to form to the exmineros in activities as the fishing, agriculture and the tourism. This project is the base of the denominated Alliance Town-Government and includes a supply for those who wishes to continue executing the artisan mining of being relocated voluntarily in preselected zones of the river basin of the Cuyuní river, where will both work under the supervision and technical attendance of ministries. August 25th, 2006 Richard Marshall answers more questions from one of our posters This news prompted our donwys to pose more questions to the ever optmistic and patient Richard Marshall VP Investor Relations, Crystallex. I sent an email to Richard with a couple inquiries regarding a few questions that came to my mind regarding recent discussions here: 1: Is the Crystallex site being mined illegally at this time or in any other way? 2: Is the site occupied by anyone not authorized to be there as a protest against this project? 3: Does this illegal mining and relocation effort, and the need to provide alternate sites or types of employment by the Ven Govt in your opinion, have anything to do with delays in the permitting process?, as it seems reasonable to me that certain factions there may be upset if KRY gets the go ahead before these displaced miners in the area are accomodated or assured in some way first. 4: Is there any information you can share regarding the protests surrounding the fuel supplies to miners and Nora Delgado being blockaded or kidnapped as some reports put it? 5: Any new info at all on the permit status? --------------- Don thanks for your inquiry. 1:There is very little (if any) illegal mining activity on Las Cristinas. We have a security detail at the site and their efforts are greatly enhanced by the presence of the Venezuelan National Guard who has a post on Las Cristinas. Most of the illegal and small scale mining in the area is to the north of Las Cristinas and KM88. We do have some small scale mining activity ongoing on the Las Cristinas being conducted by 5 local cooperatives approved under the development plan with the CVG and MIBAM in areas away from our focus. 2:We are not aware of anyone at site or in the region in protest to the Las Cristinas development. There's documented support from the local communities, indigenous tribes, local government, regional government and National Government. 3:We should not speculate on the thoughts of the government officials. MARN is the last agency we need to green light our plans at which point we'll launch the final construction/operating phase. The approval from MARN is in the final administrative phase and we expect news sooner rather than later. 4:The government passed laws a year or so ago banning small scale mining in the region in an effort to gain control over certain areas and activities. There was a suspension of that law placed until the 18th of August 2006 and I believe the government has said they will start enforcing the ban. Small scale miners will have to organize into approved, registered Cooperatives. The purpose of the new laws is so the government can monitor the small scale mining activities (stop them from using mercury etc), keep them away from sensitive environmental areas and collect taxes. 5:The permitting process remains in the final administrative phase. Regards, Richard Marshall September 1, 2006 The week was quiet but ended on a good note with a 5% pop in the price and volumes starting to creep up. Yaba posted yet another Bill Cara endorsement but this time Bob Bishop weighed in an a number of stocks including KRY. Bob is a senior analyst and is very well respected. He mentioned that there is nothing in the way except for a few bureaucrats needing to file a few reports. Bob is very positive on KRY. Here are some exerpts transcribed by a yahoo poster from Bob Bishops Interview: Robert Bishop is the editor and publisher of the Gold Mining Stock Report 1983-2006 (23 years) Interviewer John: Currently, what are some of your favorites among not only the majors but the interesting discovery investments or maybe we should focus on discovery invenstments? Robert Bishop: Right now , I think with the Viceroy takeout, one of the stocks that’s had it’s profile elevated a little bit is Crystallex. This is a Venezuelan story and therefore something many don’t want to hear about but it’s a very large deposit that is extremely attractive at current gold prices and I think that once the permit is in hand and I do think it will come probably sooner rather than later. I don’t think there’s any obstructions to prevent it from coming. We’ve been waiting on some bureaucrats to file some reports and that’s happened and I think that one could come along fairly quickly but passive permit fatigue in the stock but from anybody wanting to buy something –that one at three bucks I think makes a lot of sense. ,Interviewer John?: Are we going to see some stepped up consolidation within the gold mining industry in the period ahead Robert Bishop: I think we will for the simple reason that the majors are not finding their future. They’re not making discoveries that they need to to replace their annual production. They’re just not getting it done and that’s not a criticism that’s just an observation. That’s a fact of life. It’s not easy to replace what you’re mining so they’re out there buying it. (edit) …I think somebody takes Crystallex just because big gold deposits like that aren’t easy to come by.(edit) …Again, I think the majors, when they get their foot in the door on these things they want the junior to do the heavy lifting –to get the permits, to advance the project to the point where basically they have a bow around them and then the major will step up and take them out but kind of all in due time. They’re not known for just running around with handfuls of money throwing it at these companies but slowly but surely I think you’re going to see companies with deposits of consequence, you know, multi-million ounce deposits, will get picked off. WWW.GOLDMININGSTOCKREPORT.COM is Robert Bishop’s website This transcription was freely edited by a poster from the Yahoo Board. To listen to the entire interview, click on the link below. The Crystallex reference starts just less than half way through and the consolidation part is very near the end. http://www.cfra.com/chum_audio/B@N-Bob.B..... September 5th brought high volumes and a nice pop to KRY in the neighborhood of 15%. The last 12 trading days have seen the stock price rise by more than 30%!! Rumours abound and more analysts are jumping on the bandwagon but as of September 5th no concrete news regarding the MARN permit has been released. September 06, 2006 Small gain on large volume when the rest of the market was for the most part down. Bill Cara weighed in on his thoughts as to why KRY had the sudden increase in share price and share volume. The other factor that many posters feel we have seen these recent gains is the Las Vegas Hard Assett Investment Conference. (if anyone has a copy of the presentation please post and I will attach to the update) Crystallex presented today to a whole smorgasborg of Gold bugs. Bill Cara's intel was first reported to the KRY board by Donwys who uncovered this positive info on September 5th. Bill Cara's take on the present run up: The reason for KRY and GRZ stock soaring, Wed., Sept. 6, 2006, 2:15 PM I have finally discovered the reason why the share prices of Crystallex and Gold Reserve have exploded to the upside. It happened right after these articles appeared in Spanish in the Venezuelan media on August 30 and Sept 1. The article talks of discussions between the Ambassador of Canada in Venezuela and diplomats and government people there. Apparently in those discussions, it was reported that, according to Hugo Chavez, the Bolivar state in which the Crystallex and Gold Reserves are located will be named as the Mining Capital of Venezuela. That would be somewhat difficult without Las Cristinas (Crystallex) and the Brisas project of Canadian miner Gold Reserve (GRZ) being in operation, as they are near the mining town of Las Claritas in Bolivar and the major resource properties there. Yes, there is local opposition from ardent environmentalists, and yes, there is a plethora of politically inspired misinformation coming from Washington. But these projects will go forward, and Venezuela will become one of the great mining countries of the world. Mark these words. Source: DIARIO DE GUAYANA Headline: Mibam will expose kindness of the Mining Law to Canadian industrialists Wednesday, 30 of August of 2006 An encounter was maintained by MIbam's leader, Jose Salamat Khan, the ambassador of Canada in Venezuela, Renata Wielgosz and Louis Marcotte, the one in charge of diplomatic Businesses. The Ministry of Basic Industries and Mining will participate in a business event predicted by the Canadian Embassy due October 16, 17 and 18th, at Margarita. In the encounter, also participated: vice-minister of Promotion of Investments, Valmore Vásquez, vice-minister of Basic Industries, Raiza Molina and the president of the Venezuelan Corporation of Guayana (CVG), Daniel Machado. Minister Khan assured that the opportunity will be propitious to explain the industralists of the northamerican country, the kindness of the new Law of Mines. He explained the nature of the project of law of Mines by the National Government- through the National Assembly- and how it will offer a great opportunity to national and foreign investors. He also stated that Canada, is one of the countrys that maintains important investments in the mining sector. Minister Khan declared his interest on these investments, as long as they fulfill the objectives that have been anticipated, after the establishment of strategic alliances, based on the principles of cooperation, solidarity, complementariness and reciprocity. After the activation of the New mining Law, in the area of the mining, that guarantee technology transference, the qualification of the human resource, the technical attendance and the progressive incorporation of national added value. However, it was left clear that this new scheme of strategic alliances will not leave behind the communitie. The mechanism of social responsibility on the part of the companies, as well as, the interest of the nation in maintaining the majority shareholder of the mixed companies should be establish. “In any country of the world the mineral resources must be property of the nation, that is to say, that belongs to him to the town, nevertheless, it does not deny that the relation with the private sector”, expressed Khan. In agreement with the information contributed by the holder of the Mibam, the relation that maintains the State with foreign investors must be clear, transparent and mainly it must allow the right to sovereignty preserved. During the meeting the idea that was discussed in the macro wheel of businesses it handles other possibilities for the investment that are of interest as much for the foreign industralists, like for the Venezuelan State.” -------------------------------------------------------------------------------- Source: DIARIO DE GUAYANA –Isidro Casanova (Sept 1, 2006) Headline: Beginning auriferous projects call for miners’ evacuation Tumeremo. John Madero, engineer and President of the Autonomous Mining Institute of Bolivar represented Francisco Rangel Gómez (Governor) at an important meeting with high authorities as the Mayor Marlene Vargas. While there, he commented that the evacuation will involve 6.000 miners of La Paragua and Gran Sabana to Sifontes, through the execution of projects, the first ones on the list are: Las Cristinas, Brisas del Cuyuní and Ruscaolín, which have 6.000 jobs available, all 3 of them. Las Cristinas and Brisas de Cuyuní are located in Las Claritas while Ruscaolín is in KM88. We understand –he said- Marlene Vargas and how worry she is and that’s the main reason why she wanted us here. The Municipality of Sifontes should absorb miners from Caroní River and La Paragua, along with their families, so it is important and necessary to open new houses, health programs, education, viability, etc. parts of the areas that will be assigned have been all ready selected, and are just waiting for financing program. Now the people of Sifontes, especially small and medium miners have to opportunity to work. The Ministry of Environmental Affairs should issue the permits for Las Cristinas, Brisas and Ruscaolin, just because, once those projects begin, more jobs will be available. They have done everything fairly and properly, why not give them the permits? We have to remember that the majority of miners are working in mines because they don’t have a job, as a way out. These miners have to be stimulated to focus on other fields. 80 from the big group miners are from other places. A lot of them want to change their life style. A miner’s life is slavery and does not have a proper social scale. The miners evacuated to Sifontes have the opportunity to choose with the reconversion program. End of Post by Bill Cara http://www.billcara.com/archives/2006/09/the_reason_for.html September 10th The Venezuelan government has been accused of not being business freindly in particular to our neighbors to the south. This find by Snuff should ease alot of those concerns regarding us Canucks. The V-Gov is hosting these meetings and it appears they are hungry for our business. Snuff coud not have said it better this story is reaching "critical mass", here is Snuff's post with a link to the Canuck Government. The Macro Rueda Venezuela-Canada Business Forum on Margarita Island on October 16th is shaping up to be a key event in the expansion of business relations between Canada and Venezuela. Mining will occupy a significant portion of this event and I understand the Canadian government is sending a heavy hitter(s) to the forum. I also hear that the Canadian Embassy in Caracas has indicated that Chavez will attend the forum at some point. With the new Minimg Law scheduled for announcement on September 15 or 16th, combined with the recent vigorous KRY trading and the special KRY shareholder meeting announced for October 30th (approve shareholder rights plan prior to buy-out offer??), along with increasingly positive analyst assessment of permit issuance, it would appear that we are reaching critical mass for the imminent issuance of the permit. It seems highly unlikely to me that this major forum on October 16th would occur without these critical mining permits in place, as Venezuela makes a very high profile bid for more Canadian business relationships and development. The following article gives more information on the forum...... Snuf "Macro Rueda: A Venezuela-Canada Business Forum - Margarita Island, Venezuela - October 16 to 18, 2006 Margarita Island will provide the setting for the first-ever Macro-Rueda: A Venezuela-Canada Business Forum an initiative organized by the Government of Venezuela to promote trade and investment between our two countries. The Macro-Rueda will be an ideal platform for Canadian exporters looking to establish or strengthen their presence in this growing market, which is Canada's second largest export destination in Central and South America. The program will allow companies to schedule one-on-one meetings with potential partners, exchange export and import orders, network, exhibit their products and services, and explore joint ventures, technology transfer, and investment opportunities. While the oil and gas industry figures prominently, Venezuela has taken steps to develop other sectors such as agriculture, mining, electric power, infrastructure, telecommunications, health care, environmental services, and consulting engineering. If you are an export-ready company and have a business interest in the Venezuelan market, please consult the event website: www.bancoex.gov.ve/macroruedas, or contact the Canadian Embassy in Venezuela." September 11th Bill Cara still front row of our Bandwagon, here is a snippet from his recent reference to KRY: And when you look at the current cash operating costs of companies like Goldcorp and potentially with Crystallex, and you look at a gold price of $540, you have to smile. Then you consider what the profitability will be with the gold price at $700-$850-$1000-$2000, and you can only conclude that the present price pull-back is resulting in the Buy of the Generation. http://www.billcara.com/archives/2006/09/bear_rally_is_o.html September 14th Snuff the Magic Dragon obtained intel that advanced KRY one step closer to obtaining the long awaited permit. It never made it to the main wires but reference to it was found on a number of Brokerage house alerts including Bill Cara's web site. Where there is smoke there is fire and today's volume was an indication of increased interest on the up side on a day when most gold plays were down to their lowest levels since June. Here is the intel that Snuff uncovered the evening of September 13th There was more news from Dow Jones Venezuela yesterday: By Raul Gallegos Of DOW JONES NEWSWIRES CARACAS Dow Jones)- -Venezuela will soon decide the status of Canadian miner Crystallex International Corp.'s (KRY) Las Cristinas gold mine, and could approve a long-expected environmental permit that has also held back its development, government officials said Wednesday. Authorities have also proposed a joint environmental impact study for Crystallex's Las Cristinas and the Las Brisas mine, controlled by Canadian company Gold Reserve Inc. (GRZ), and approve a permit for both, according to the vice minister of the environmental ministry. "We're still evaluating the conditions under which (the government) signed a contract with Crystallex in the Las Cristinas area," Laura Paredes, head of the concessions department at the mining ministry, MIBAM, told Dow Jones Newswires. "I think we should have a result and some clarity sometime this year." Paredes warned that "it would be pretty reckless to say" that Crystallex could lose its standing with the Las Cristinas development. She clarified that the contract review seeks to determine why or how previous mining administrations approved the Crystallex deal. The review will also indicate if the company will have to sign a joint venture agreement with the government in the future, among other alternatives. But ministry officials, Paredes noted, have yet to work out the available alternatives in the Crystallex case. Paredes said a number of worker cooperatives have been pressing the government to make a decision on the Las Cristinas mining area so they can also actively participate in activities there. Officials from the Canadian company have long claimed their contract is safe from the government's plans to revamp the mining industry, and that a pending environmental permit is due any time now. The government approved Crystallex's project plan earlier this year, but the company has been waiting for an environmental permit approval since 2002. Nora Delgado, vice minister for the environment, told Dow Jones Newswires the government is working to give a joint environmental approval to both Crystallex and the Las Brisas mine, if they agree to share needed infrastructure. Although each company has different characteristics and needs, she said, the adjoining mines could share one single airstrip, among other works, to minimize environmental effects. "What we're asking them is to share the infrastructure they build," Said Delgado, who added the government pitched the idea to the companies two-and-a-half months ago. "Both have been receptive to the idea...and we have no problem giving the permit if all the standing environmental rules are followed." Delgado said the study would conclude in two months, after which the ministry would issue the needed permit. Crystallex officials could not immediately comment on the matter, but Arturo Rivero, president of Gold Reserve's Venezuela unit, said his company supports the idea of sharing infrastructure. Las Cristinas is considered one of the world's largest gold deposits. Both las Cristinas and Las Brisas are located in the southeastern state of Bolivar. Gold Reserve is expected to invest $700 million in the Las Brisas project, a mine obtained under concession in 1998, a year before President Hugo Chavez took office. Chavez has promised to cancel contracts and concessions found to be "idle" and to reassign mines to small-scale miners in poverty-stricken communities. Some mining agreements could give way to new joint-venture deals with the state firmly in control. Concessions found to be productive and in good legal standing will continue to operate until their agreements with the Venezuelan government come to an end, said MIBAM's Paredes. Lawmakers are set to give a second reading on a proposed new mining law in coming weeks that will aid Chavez's planned changes for the industry. Chavez's fiery rhetoric and his tendency to replace mining ministers has created uncertainty in the mining industry, in which many foreign companies operate. Foreign miners in the Andean country include U.S. company Hecla Mining Co. (HL), China's Shandong Gold-Mining Co. (600547.SH) and South Africa's Gold Fields (GFI), among others. -By Raul Gallegos, Dow Jones Newswires; 58-414-288-7461; raul.gallegos@dowjones.com (END) Dow Jones Newswires 09-13-06 1858ET Copyright (c) 2006 Dow Jones & Company, Inc. Bill Cara's response to this news was extremely positive: September 14, 2006 Another Crystallex day, Thurs., Sept. 14, 2006, 6:20 AM I am unequivocally a Bear on the U.S. equity market and a Bull on Precious Metals. As you know I have become a proponent of shares in Crystallex International Corp (TSX, AMEX: KRY), and am trying (trust me) to get out a personally prepared detailed research report on this company. I believe that at $625 gold, the 12-month target for KRY – based on the company getting final approval of the environmental permitting required to start mining the Las Cristinas property – is US$11.50 (~C$12.75). Bill then closed the day taking the bull by the horns and calling Toddy Bruce: September 14, 2006 Latest on Crystallex, Thurs., Sept. 14, 2006, 3:19 PM I spoke this morning to Crystallex CEO Todd Bruce. The bottom line, he says, is: “We will get the permit when we get it.” What he means of course is that they are going to get it; he just doesn’t know when. Is he concerned? Didn’t sound like concern to me when he said that there is really one issue, which is whether the three different miners in that area need three airstrips or one. “It’s a peripheral issue, and I’ll be happy to resolve it,” he said. There is really so little to report here, I don’t know what traders expect. If you are hung up on country risk, or not wanting to support mining in a country like Venezuela, that’s fine, but don’t bother commenting here. The line doesn’t start with you. There are millions who agree with you. Do I agree? Obviously no. I believe Venezuela is a significant economic force in the Americas, and one that supplies the U.S. with a lot of oil. If you want to cut that off too, then I guess you'd like to see a price of $4 or $5 a gallon at the fuel pump. I do believe the Bolivar State permit issue is a local environmental issue, which will be resolved soon. End of story. Did the Dow Jones reporter write a constructive report on Crystallex yesterday? Yes, but it’s about time. Now, apparently, he has the Gold Reserve people upset. It’s time to stop reading these reports anyway, and time to meet management. I think both Crystallex (KRY) and Gold Reserve (GRZ) represent outstanding speculative value, but I don’t know management at Gold Reserve. Most of the precious metals companies I have listed in this blog as ones I support are exhibiting and/or speaking at the Denver Gold Forum Sept 24-27. Crystallex and Gold Reserve definitely will be there, and so will Alamos Gold, Aurelian, Barrick, Glencairn, Goldcorp, Golden Star, High River, Lihir, Queenstake, Newmont, Northgate, U.S. Gold, and Yamana, plus so many more. I hope you attend. In fact the myGrassroot group will have a few people there, and we’ll hear from them. I’ll be in Toronto meeting with the tiny cap group at the Cambridge gold show, and I’ll write that up too. At the end of the day, gold is not going away. Ever. Paper money does because governments print it faster than it gets invested economically, such as during war time. So as long as we have war and a well greased money printing machine, then gold will be in demand, and the price will rise. Today, the gold stocks are getting hammered, with only 3 up and 31 down on my board, but I see that Crystallex is up +3.4 pct on the day. I guess traders are listening re KRY. They should be. Posted by Bill Cara, September 14th, 2006 http://www.billcara.com/archives/2006/09/latest_on_cryst.html September 15, 2006 Lower volumes but KRY still bucked the downward trend of the Gold Equities market today. Donwys fom our board penned a querie to Richard Marshall VP of Investor Relations at Crystallex regarding Wednesday's release from the Dow Jones News Wire. Here are Don's Questions and Richards answers from that email. I sent an email to Richard regarding this DJNW article with a few questions: Good day Richard. I am including a copy of the latest news wire article that seems to be developing some curiosity. I'm sure you are aware of it but I have a few questions: 1-There has been so much emphasis on the state of KRY's status and contract in recent weeks and months, what does it mean when this article states the government is reviewing how and why kry got the rights to Las Christinas? This seems from way out in left field to me, I thought this was settled 2-This reference to signing joint venture agreements. Does this new mining reform include KRY? it seems by the tone of the article it might. 3-The review of the joint infrastructure use and development seems like a commonsense approach to economize, and it states that there will be a two month review of this scenario with possible permit following. Can you comment on this 4-Is it possible for KRY and GRZ to get together and put out a news release or info regarding some of the joint issues that are being developed and negotiated. I'm sure if this news wire article is credible and the officials in Venezuela can say these things then there must be some latitude as far as KRY and GRZ saying where the process stands as far as progress goes, without getting into Govt hot water. Thanks for any comments you can provide Richard ------------------------------------------------------------- Richard Marshalls response: I believe the review Mr Gallegos (the reporter at Dow Jones) references that Paredes talks about is the review being done in conjunction with the amendment of the mining law in which every title, concession and operating contract, is being reviewed. Clearly in response to Gallego's questions about Las Cristinas she could not state that the project alone is exempt from that comprehensive process. It is interesting to note however that she went quite far out on limb in stating that it would be reckless for anyone to assume that Las Cristinas would be negatively affected by the review and she also went on to state "that Concessions found to be productive and in good legal standing will continue to operate until their agreements with the Venezuelan government come to an end." This mirrors what Deputy Rivero (of the Venezuelan National Assembly) publicly stated in July when he specifically identified Las Cristinas as a project that the Government recognised as being active and not idle and one therefore one that would be respected by the Government. There was discussion months ago between the government agencies and Crystallex regarding shared infrastructure so that there wouldn't be 3 or 4 airstrips in the region for 3 or 4 mining operations. We have no problem with that. Unfortunately, I think some speculate that that may mean shared mills or combined projects which is not the case. There may be a few less airstrips or roads in the area but there's not much else infrastructure wise to share. We remain in the final administrative phase of permitting at MARN and believe news will come sooner rather than later. Regards, Richard Marshall September 20, 2006 September 19th was a painful day as our stock received a 10% haircut. The drop was largely due to an unsubstatiated article put out by Bloomberg's Peter Wilson. Wilson tends to gorify any news at all on Las Cristinas by misquoting and dredging up old quotes and making them appear as if they recently occured. The only truth to Wilson's article is the fact that the new legislation has now been delayed until October 15th. Reuters and two Venezuelan newspapers ran this story without the artistic license that Pete Wilson seems to get away with. Todd Bruce also quickly responded to the reports that calmed investors fears to a certain extent. Here are the articles that came down the pipe yesterday. 1. Peter Wilson's from Bloomberg: http://www.bloomberg.com/apps/news?pid=conews&tkr=kry:US Crystallex International Corp Venezuela Delays Vote on Proposed Mining Legislation (Update1) By Peter Wilson Sept. 19 (Bloomberg) -- Venezuela will delay a final vote on legislation that would eliminate some mining concessions, seeking more time to discuss the bill with small miners, Basic Industries and Mining Minister Jose Khan said. Khan told reporters outside a congressional ceremony today in Caracas that approval by the end of the year is possible. Legislators in the government's ruling coalition had said several months ago that the bill would be approved by September. ``We have to hold a debate in the street about mining,'' Khan said. ``We have to discuss this law with miners, the families of miners, with the people who will be affected. This can't be a law made solely in Caracas or in the National Assembly.'' Khan, who was appointed minister in August, didn't say what changes might be made. Venezuela's National Assembly gave preliminary approval to a reform of the mining law in late June, setting up a second and final vote. Venezuelan President Hugo Chavez, seeking to take control of idle gold and diamond fields in the South American country, sent congress the proposed draft on June 16. Backers of the president control all 167 seats. The bill would force companies currently holding concessions on mines not being exploited to convert those concessions into joint ventures with the government, Khan said. The bill would also push up the royalties that miners pay. ``Many companies have held concessions for more than 20 years and not developed them,'' Khan said. ``They have used their concessions to bolster their share price.'' Crystallex Deputy Angel Rodriguez, who heads the National Assembly's Energy and Mines Committee, said in an interview outside the ceremony that legislators will meet tomorrow with Khan to map out a timetable for a vote on the bill. Rodriguez didn't rule out a delay on approval until 2007. Khan said the government hasn't decided yet whether mining contracts -- such as the one held by Canadian miner Crystallex International Corp. holds to develop the Las Cristinas gold tract -- will also have to be converted into joint ventures, like concessions. Crystallex President and Chief Executive Officer J. Todd Bruce said in June, when the bill was first introduced in congress, that the company's contract was ``valid'' and that he didn't expect the legislation to affect it. Crystallex received a contract in 2002 to develop Las Cristinas, in the southeastern state of Bolivar. The tract has more than 10 million ounces of proven and probable reserves, making it Venezuela's largest deposit. Permits Many companies, including Crystallex, are waiting for environmental permits to start mining operations. Khan said that all requests for permits are under investigation by the country's Environmental Ministry and declined to give a timetable for approval. Venezuela produced 20.5 metric tons of gold in 2004, compared with Peru, the largest in South America, which produced 173 metric tons, according to London-based GFMS Ltd., a precious metals researcher. Shares of Toronto-based Crystallex fell 10.3 percent to C$3.24. The company's New York shares fell 11.2 percent to $2.86. Gold Reserve Inc., a U.S. miner, fell 4.2 percent to $4.42. To contact the reporter on this story: Peter Wilson in Caracas at pewilson@bloomberg.net Last Updated: September 19, 2006 17:34 EDT 2.Reuters news release with Todd Bruce comments http://today.reuters.com/news/articlehybrid.aspx?type=comktNews&storyid=URI:2006-09-19T221038Z_01_N19436692_RTRIDST_0_MINERALS-CRYSTALLEX.XML&rpc=11 TORONTO, Sept 19 (Reuters) - Crystallex International Corp.'s (KRY.TO: Quote, Profile, Research) chief executive said on Tuesday he is confident his company will get a crucial environmental permit needed to build its Las Cristinas gold project in Venezuela. He just does not know when. Crystallex CEO Todd Bruce made the comments on the same day the company's stock dropped 10 percent on a report that the process to amend the existing mining law in Venezuela would take longer than expected. Reuters was unable to confirm the report. But Bruce said the two issues were unrelated. "We continue to be advised that there is no connection between the timing of the passage of the amended mining law and the issuance of an environmental permit for our Las Cristinas project," he said. "We continue be advised that the two issues are completely unrelated." Crystallex shares fell 37 Canadian cents to C$3.24 on the Toronto Stock Exchange. Toronto-based Crystallex has been in a holding pattern since the Venezuelan government awarded it the contract to develop the large deposit in 2002. Since then, its stock has hit highs of C$7.17 on hopes for development and lows of C$1.17 on reports that Venezuela was trying to nationalize the resource sector. In March, it won approval for a feasibility study, which it said cleared the way for environmental authorities to grant the final permit. "We continue to be completely confident that we will get the permit, obviously the only entity that is in control of the issuance of the permit is the ministry of the environment," Bruce said. Angel Rodriguez, president of the parliamentary commission on energy and mines, said his commission would present a report for the second debate on partial reform to the mining law in the first 15 days of October. ($1=$1.13 Canadian) 3. This was released on El Nacional September 19th, 2006 http://66.218.71.231/language/translation/translatedPage.php?lp=es_en&text=http://www.el-nacional.com/ Policy The Reformation to Law of Mines will take to second discussion in October It is predicted that in the middle of October it is introduced in plenary of the National Assembly the reform to the Law of Mines, for his approval in second discussion. The asseveration made east Tuesday the president of the Permanent Commission of Energy and mines of the AN, deputy Angel Rodriguez, who stood out that they maintained to a meeting with the holder of the Ministry of Basic Industries and Mining, Jose Khan, in order to make specific the possible dates to develop the social parlamentarismo in all the country in relation to the instrument, before his second discussion. It explained that the objective of these consultations in all the territory, is to elaborate a law that includes all the problematic miner of Venezuela and Bolivar does not only confine itself to the mining potential of the state. This reform, which was approved in June in first discussion, is concentrated in recovering the inactive areas that are the expression of the mining large estate. The reform to the Law of Mines also anticipates the update of the cadastre and mining maps of the country. 4.On Sept 20th snuff found more news that discounted Pete's fear mongering: Snuff's post: Here is the latest translation from El Universal, which corroborates the story in El Nacional, confirming the mid October date for the new mining law, thereby refuting the Peter Wilson "end of year" garbage. It creates mixed companies Law of Mines will go to second discussion The reform of the Law of Mines, that anticipates the creation of mixed companies in the sector with majority shareholder of the State, is predicted for half-full of October. Angel Rodriguez, permanent commission of Energy and Mines of the AN, maintained to a meeting with minister of Basic Industries and Minería, Jose Khan, in whom it was spoken about the consultation of the law. The reform, said the parliamentarian, must like objective rescue “the national sovereignty on almost a million hectares that were adjudged more ago than two decades under the figure of concessions or operative contracts, that in most of the cases, stay inactive”. The areas that recover will be readjudicadas in different modalities. Here is the link to the untranslated article http://www.eluniversal.com/2006/09/20/eco_art_20202F.shtml Finally and worth noting the Agenda has been released for the Canadian/Venezuelan meetings to be held in Mid October, it is the boards strong Opinion that the Venezuelan Goverment would want a few issues cleaned up before they go into high level meetings with us Canuck Investors/Politicians. A large part of the Agenda is to do with mining with Yours Truly Jose Khan presenting. It is also expected that Hugo will make an appearance, here is the Itinerary as it relates to mining: Venue: Day 3 Gran Salón A and B Hilton Margarita & Suites Hotel Dress: Business Casual Participants: Canadian and Venezuelan exporters and importers 09:00 – Trade Exhibition 19:00 Venue: Salón Nueva Cadiz Oriente Hilton Margarita & Suites Hotel Dress: Business Casual Participants: Canadian and Venezuelan exporters and importers 09:00- Investment Roundtables 17:00 Presentations to potential investors by Venezuelan authorities on investment plans and projects. Organized by the Ministry of Basic Industry and Mines and other ministries. Sector: Basic Industries and Mining Participants: Canadian investors 09:00 – 09:30 Opening Ceremony Welcome Remarks by José Khan, Venezuelan Minister of Basic Industries and Mines Welcome Remarks by Renata E. Wielgosz, Canadian Ambassador to Venezuela 09:30 – 10:00 Venezuela’s Basic Industries and Mining Plans and Policies Representative, Ministry of Basic Industries and Mines (MIBAM) 10:00 – 10:30 Venezuela’s Basic Industries and Mining Legal Framework Representative, Ministry of Basic Industries and Mines (MIBAM) 10:30 – 11:00 COFFEE BREAK 11:00 – 11:30 Venezuela’s Foreign Investment Policies and Regulation Representative, Venezuelan Foreign Investment Agency (SIEX) 11:30 – 12:00 Foreign Exchange Regime in Venezuela Representative, Venezuela’s Foreign Exchange Commission (CADIVI) 12:00 – 12:30 Investment Opportunities in Venezuela Mercedes Briceño, President, Venezuela’s National Council of Investment Promotion (CONAPRI) 12:30 – 14:00 LUNCH 14:00 – 16:00 Presentation by MIBAM authorities of investment projects in the basic industries and mining sector 16:00 – 17:00 One-on-One meetings between Canadian firms and MIBAM authorities to discuss specific investment project opportunities http://www.infoexport.gc.ca/ve/index.htm Day 4 also has mining on the agenda. Cheers BritNick