Crystallex confirms permit at Las Cristinas

The Venezuelan government has confirmed Crystallex International‘s (KRY-T) land occupation permit for the Las Cristinas gold properties in the Kilometre 88 gold district. The permit authorizes mining on the properties and is a prerequisite for final permitting.

Crystallex and state-owned Corporacion Venezolana de Guayana (CVG) expect the Ministry of the Environment and Natural Resources to grant the project’s final permit sometime this fall; full-scale construction would begin soon thereafter.

Meanwhile, engineering and environmental work continues. The company is also awarding procurement and construction contracts. Refurbishment of the existing construction camp is ongoing, as are the extension and tarring of the airstrip.

In other news, Minca, a 95%-owned subsidiary of Vancouver-listed Vannessa Ventures (VVV-V), has withdrawn legal challenges to Crystallex’s right to develop Las Cristinas. The withdrawal was required as part of Minca’s application for international arbitration under the Canada Venezuela bilateral investment treaty.

Plans at Las Cristinas call for construction of an open-pit mine capable of producing 266,000 oz. gold annually over 34 years. Production is pegged at 311,000 oz. during each of the first five years. Capital costs are estimated at US$242.8 million.