Growth strategy on target for Crystallex

Vancouver – Continuing to agressively expand operations in Venezuela, Crystallex International (KRY-T) posted a profit of $900,000 or 2 cents per share in the first nine months of 2001.

This compares to a profit of $2.9 million, or 5 cents per share tallied in the corresponding period of 2000. The company saw revenues jump to $42.2 million over the nine-month period, up from the $31.4 recorded in 2000. Gold production soared to 81,240 oz. during the period marking a 25% increase from the 65,264 oz tallied in the first nine months of 2000.

In the latest quarter ended Sept. 30, the company reported net income of $11,045, or nil per share on revenues of $13.6 million, compared to a net income of $1.1 million, or 2 cents per share on revenue of $14.5 million hit in the third quarter of 2000. Gold production came in at 28,077 oz., roughly the same as the 2000 quarter.

“In the third quarter we continued on track to meet our production goals,” says the company’s CEO, Marc Oppenheimer. “By increasing our Venezuelan production some 12%, we were able to offset lower production from our San Gregorio mine as we prepared that site for continued mining activities.”

Keeping the focus on Venezuela, the company aims to develop the Albino and Charlie Richards deposits in Bolivar state in the coming months. The US$15.3 million projected development costs will be funded from existing cash flow and current credit facilities.

“These projects are very important to the Company’s growth strategy,” added Oppenheimer. “We will now have three mines operating in Venezuela in 2002.”

During the quarter, Crystallex hired Reno-based Mine Development Associates (MDA) to conduct a bankable feasibility study on the Albino 1 and the Charlie Richards underground deposits in Venezuela.According to MDA, the combined mineable reserves of the portions of the two deposits included in the study tallied 435,700 tonnes grading at 12.67 grams gold. Development of these two underground mining operations will begin in the first quarter of 2002 with production expected from the Charlie Richards mine in the third quarter of 2002, followed by the Albino 1 in the fourth quarter

In Uruguay, the San Gregorio mill processed 265,563 tonnes of ore grading 2.03 grams gold per tonne, yielding 15,634 oz at a 90% gold recovery rate and a direct cash operating cost of US$233 per oz. in the third quarter.

In Venezuela, the Revemin mill processed 93,083 tonnes of ore at a grade of 3.46 grams gold, recovering 12,443 oz at a 90% recovery rate and a direct operating cost of US$200 per oz. in the latest quarter. Of this, 4,808 oz came from the Tomi mine and 7,635 oz came from La Victoria at the Lo Increible project.