Crystallex: Gold prices put shine on Las Cristinas reserves

Toronto-based Crystallex International (TSX: KRY) said enhanced gold prices provided 770,000 additional ounces, or 29% of the 2.68Moz of contained gold recently added to reserves at its Las Cristinas gold project in Venezuela. The latest reserve estimate, released on November 9, used a US$350/oz gold price as opposed to US$325/oz in the prior estimate. Current reserves stand at 333Mt of 1.20g/t for 12.85Moz of gold compared to the previous estimate of 246Mt grading 1.29g/t gold for 10.2Moz of the yellow metal. The remaining 71% of the recent reserve increase was attributable to the 7,120m, 18-hole infill drill program completed in 2004 at Las Cristinas for US$750,000, the company said in a statement. Independent consultants Mine Development Associates (MDA), which also updated Las Cristinas' proven and probable reserves, calculated the gold reserve sensitivities. Crystallex has committed US$80mn to date in equipment orders for an eventual mining operation at Las Cristinas, with production slated to begin in the second half of 2006 at a rate of 300,000oz/y for the first five years. Crystallex holds rights to the property under an agreement with state-owned CVG.