Monday, April 26, 2010

Gold Reserve (TSE:GRZ), Crystallex (AMEX:KRY), ValGold Resources (CDNX:VAL) and Nationalizing Venezuela Gold Mining

While the news that Hugo Chavez is looking at nationalizing the gold mining concessions in Venezuela won't have a lot of impact on the industry, for a couple of companies, Gold Reserve (TSE:GRZ) and Crystallex (AMEX:KRY), it will be a blow to them, as they were ready to come in line soon.

For Crystallex, they were about to come in line with about 250,000 ounces of gold later in 2010, while Gold Reserve was slated to produce about 460,000 ounces of gold in 2012.

ValGold Resources (CDNX:VAL) was in the exploration stages and probably won't be hurt, other than losing potential.

Gold Reserve sunk $300 million into their ventures, and reportedly are in arbitration from already being taken over.

Laughably, Venezuela is seeking partners to work with them to develop their Las Cristina project, one of the largest undeveloped gold mines in the world.


Anonymous said...

I came here through a web search hoping to get some insight into Chavez' latest comments, but after reading a couple of sentences, I knew I was going to be disappointed. If you believe GRZ and KRY were coming online (or 'inline' as you for some reason like to call it), then the rest of your article loses all credibility. Do 15 min of research instead of copying and pasting from other news articles and you will realize there is no way in Hades that either of these companies can come 'inline' during the periods you suggest. While you might have just pulled that from their company statements, you'll find these comments have been made by each company for the greater part of a decade. Just to add insult to injury, you can't say Ven. is "looking at nationalizing the gold mining concessions" and then say that this is going to be a blow to Crystallex. 30 seconds of research would have informed you that the government already holds the concession to Las Cristinas; Crystallex has a contract with that government body for the extraction. I know very little about Valgold, but forgive me if I don't take your word on the impact of the president's latest comments, as you've demonstrated you'll blog about a company while actually knowing little to nothing about their situation.


Anonymous said...

Goldinok said it all. Your diatribe is a disgrace,

Rob Bonger

Anonymous said...

WOW ... if you are getting paid to write this blog then you truly are stealing money from someone.

a 30 second google search on this issue would correct 90% of what you got wrong, which is a LOT!