Thursday, December 18, 2008 18:10 (GMT-0400)
Venezuela's basic industries and mining ministry (Mibam) plans to install a gold refinery near the Las Cristinas gold project, a ministry official told BNamericas.
"The idea is to industrialize gold production because the Venezuelan state is taking over those areas along with [the industrialization] that Rusoro will carry out," the official said.
The initiative came about because the Venezuelan government estimates that the area holds reserves of close to 41,700oz of the yellow metal, according to the official.
The refinery calls for the creation of Minera Venrus, a JV with Rusoro Mining (TSX-V: RML), that will be in charge of exploration, mining and marketing the gold, and will also be responsible for building facilities and the metal processing plants, the official said.
Las Cristinas has 464Mt grading 1.13g/t gold or 16.9Moz contained in proven and probable reserves, in addition to 629Mt grading 1.03g/t gold or 20.8Moz contained in the measured and indicated categories.
Rusoro keen on developing Brisas, Las Cristinas together - Venezuela
On Wednesday (Dec 17) an official with Venezuela's mines and basic industries ministry (Mibam) told BNamericas the ministry has finally decided to rescind the mining concessions of Gold Reserve on Brisas and Crystallex International's (TSX: KRY) rights for Las Cristinas in order to develop the two projects with Rusoro.
"I can't confirm that," Rusoro president George Salamis said in a Wednesday telephone interview following the report. "All I can say is that the government is very happy with what we have done on other projects." As Russian company Rusoro Mining (TSX-V: RML) enters litigation against Gold Reserve (TSX: GRZ) over a recently launched takeover bid by the former, the company said it is eager to one day develop Gold Reserve's Brisas project in Venezuela and the adjacent Las Cristinas property together, and ultimately become the premiere miner in the country. He added, however, that developing Las Cristinas and Brisas together "would make sense from an operational perspective. It's the same ore body." Salamis specified, however, that for the time being Rusoro is concentrating on taking over Gold Reserve and only then would turn its attention to developing Brisas. Rusoro launched an unsolicited all-stock takeover bid for Gold Reserve on December 15 after having sent a non-binding letter of intent to acquire the miner in August, which was rejected. "We tried to do things in a friendly manner but enough is enough," Salamis said. "We have to resolve the situation in kilometer 88 [the so-called mining district where Brisas and Las Cristinas are located]." "We will be the premiere mining company [in Venezuela] and that's why we started the company in the first place," he added. Las Cristinas has 464Mt grading 1.13g/t gold or 16.9Moz contained in proven and probable reserves, in addition to 629Mt grading 1.03g/t gold or 20.8Moz contained in the measured and indicated categories. The Brisas project holds proven and probable reserves of 10.2Moz of gold and 1.39Blb (630,039t) copper. To read the full interview with Salamis, see this week's Perspectives, to be sent to subscribers on Friday