Gold Reserve revises plan for Brisas mine

Drilling by Gold Reserve (GLDR-T) has increased proven and probable reserves at the Brisas gold-copper deposit in southeastern Venezuela.

As a result of the 13-hole, 5,700-metre program, the reserve figure stands at 6 million oz. gold and 732 million lbs. copper within 245.5 million tonnes grading 0.77 gram gold per tonne and 0.13% copper. The estimate was calculated using a gold price of US$300 per oz., a copper price US80 cents per lb. and a stripping ratio of 1.6-to-1.

Using a gold price of US$335 per oz. and a copper price of US90 cents per lb., the estimate rises to 6.9 million oz. and 900 million lbs.

Cash operating costs are pegged at US$169 per oz., based on a revised open-pit mine plan that includes an on-site copper recovery circuit.

The estimated capital cost is US$344 million.

Gold Reserve has US$10 million in cash and no long-term debt.