With us today is Frank C. Smeenk President & Chief Executive Officer of KWG Resources Inc. Mr. Smeenk discusses recent conversation with Noront Resources after proposed acquisition of Cliffs Chromite was announced.
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Great shape IMHO
Jan 22, 09 08:06PM
I'll try not to bore everyone rehashing old news stories but I wanted to summarize a bit about what happened to us and where I believe we're headed.
We've been waiting for the final environmental permit to begin mining for a couple of years now. We we're suppose to get it shortly after EASTER in 2007 but nothing happened. We were told many reasons such as elections, new mining law, one mine, and finally in 2008 Ortega issued the statement that their would be no open pit mining allowed and no permits issued.
We were sunk. Our share price got slaughtered and the nay sayers came out in full force. We appealed but it was ignored which was the same as a denial. Some one (Hugo) from the government forced Minamb back to the table to reconsider. Merly Garcia the VP of Minamb at the time tells Crystallex there are 3 areas that need to be addressed. After a 2 day site visit Garcia gives Crystallex a letter confirming they are in compliance. Crystallex asks Ortega to consider the letter from Garcia in making her decision of the appeal.
We hear nothing from Ortega and the share price continues to slide. More stories start appearing about Rusoro being the "partner of choice" and how they will be mining LB and LC. Sanz is reported to have said in more papers than I can count that VZ is taking back LB from Grz and LC from Crystallex even though he never uses either companies name.Headlines abound about Hugo nationalizing LC and taking back Crystallex concession even though they don't have a concession. Every paper suggests that Crystallex is going to end up with nothing. Only Rusoro is mentioned as a viable mining company in VZ.
VHeadline starts publishing nothing but pro Rusoro stories and singing the demise of bot Grz and Kry. Interview after interview is about how the only company that will be mining will be Rusoro or VenRus. Hugo is quoted as saying that a new company named VenRus will be mining LC and LB. This is a JV company with CVG and Rusoro. Again we're doomed.
Finally today a ray of sunshine crept through the dark clouds of BS and manipulation. Sanz publicly states:
Venezuela continues to be undecided about the exploitation of the gigantic Las Cristinas gold deposits for which it signd an contract with the Canadian (Co.) Crystallex years ago, even though the Government said just recently that it would develope it with the ruso-canadian firm, Rusoro
" The Venezualian State has the right to excercize sovereign control over its stragegic mineral sites..this does not exclude any form of relationship, each case will be studied as to what the relationship is," said Rodolfo Sanz, the minister of MIBAM, on Thrursday."
Inquiring about if Crystallex would leave the project after having waited for years for the environmental permits to develope the mines, tje said, "I have not said that". "When when we have a decision, it will be communicated (to whom it needs to be comunicated) to the interested parties, he added.
Regarding the Rusoro operations in Venezuela, Sanz said that its activities are carried out in other areas. "Russoro is not involved in Las Cristinas. Las Cristinas (is of the)( belongs to) the State of Venezuela. We are associated with Rusoro en RusVen, and RusVen is working with us in la Camorra y in Isidora, he pointed out.
This has definitely thrown a wrench into all the negative BS that has been reported. Sanz comments that sent us spiraling down have been clarified by Sanz himself. LC is owned by the VZ and they will consider all types of mining relationships to get the gold out. Sanz clarifies that even if a private company was to mine LC it is still under VZ control and VZ owns the gold. Our mining contract wasn't mentioned and there was no mention of the need for a JV. He goes on to specifically say Rusoro is not involved in Las Cristinas. So much for the partner of choice getting LC.
The whole issue of no permit because of the open pit mining band is now dead since Hugo himself has said their will be mining at LC in 2009. While Sanz didn't say Kry would be mining LC he did say no decision had been made and when one was made the interested parties would be notified.
Lets see now, Hugo wants mining to start ASAP and says 2009. Sanz doesn't limit who might be mining LC and it doesn't have to be a nationalized company. Sanz doesn't say it will or won't be Crystallex but who has the plans, the equipment and legal contract.
Our wait isn't over and expect more BS stories out of Roy and other hacks. We have started the climb with share price again and as more and more people realize that Crystallex is the only company that can accomplish Hugo's goals for gold mining at LC with causing huge delays and compensation to VZ the higher the share price will rise.
People speculate that our share price will never reach old highs even with the permit but I wonder if we climb to $1.50-$2.00 before the permit is issued why not. With the permit Crystallex becomes the best acquisition target out there for gold companies to increase their reserves. Nobody has the amount of gold at LC and the plans to start building right away.
I'm going to enjoy the ride back up almost as much as I hated the wild ride down. I'm more confident than ever Crystallex will rise from the ashes to regain it's place among real gold companies.
Crystallex is under CCAA protection and awaits an ICSID arbitration award. This is a link to the Directories and Subdirectories of CCAA Docs disclosed by the Monitor. Click on a directory and a dro...