Actually, the first assumption that has to be made is that Hugo wants to mine the KM88 area. And, naturally, assuming the above assumption is yes, he would want to gain as much as possible from any transaction that he would enter.

Next, it has to be conceded that Hugo likes the Chinese. Not just their money, but their idealogy. He is already committed to them with a flow of oil that I am not sure he can fulfill. Hugo has tried to get his aluminum business back off the ground and he has only 1 taker after several years of trying, the Chinese. Hugo has already referenced multiple times that China will be involved in mining, including gold with the Chinese. This is not my opinion but Hugo's words captured by reputable reporting agencies.

Does China want the gold? Absolutely yes. They just bought another 200 tonnes in the last 3 months, presumably at spot prices. A little more than chump change. This appetite will not decrease in the forseeable future. With an ever increasing middle class, and with the promotion from the Chinese government for its citizens to own gold, well just more demand. Not paper gold (overleveraged I am sure) but physical gold.

Total up what the Chinese are paying for the physical gold, they have quite a bit of leeway in what they can do to make a profit in a deal with Hugo. Personally, I have always believed that Hugo wants the same model as oil. Thanks to others work over the decades, no doubt exists of its existence. Just like the oil. So, you have have a proposal that includes up-front cash for a buy-in and the joint venture. The issue Chavez has with the joint venture part is he does not have the cash to pay his part. Take a look at how the oil projects are going.

Lastly, because I could go on forever, is what country, company, or individual has actually released investment cash to Venezuela within the last few years. Has the Russian/Vz bank really accomplished anything? Is their really any cash in this fund?

It seems to me that finally we are about to find out what Hugo wants to get this mining going. Nothing is for sure but I have a ticket to find out.