Venezuela approves Brisas operating plan for gold reserve's 6.7 million ounce gold/copper project
www.stockhouse.ca 2/19/03
Gold Reserve Inc. (TSX: GLR.A - OTC: GLDR.OB). Gold Reserve reports that the Venezuelan Ministry of Energy and Mines has approved the operating plan for the Brisas gold/copper project. This approval is the result of considerable effort by the Company and has occurred at a time period when the economics of the project have been enhanced by the recent increase in the price of gold and copper. The Company has completed a majority of the required technical work and has already commenced activities with engineering and technical firms to complete the bankable study for project financing. In addition, activities have commenced to obtain the necessary environmental permits and approvals from the Venezuelan Ministry of Environment.
Rockne J. Timm, President and CEO, stated, 'The Company is proceeding with the Brisas 'stand-alone'project primarily due to the recent increase in the price of gold and copper. The last several years have been a time period of depressed commodity prices and we have advanced the project to this stage with minimal shareholder dilution and a strong financial position, allowing the Company to advance the project to the next level. We are extremely excited to move the Brisas project forward at this time. In addition, we do not believe the recent events in Venezuela will have any significant impact to our immediate or mid-term efforts.'
Gold Reserve's Brisas project in southeastern Venezuela contains a current resource of 9.9 million ounces of gold containing proven and probable reserves of 6.67 million ounces of gold and 871 million pounds of copper. The Company has approximately US$12.5 million in cash and no debt and no gold hedging. With 24.3 million shares outstanding, this amounts to 0.27 ounces of gold reserves per share, which is one of the highest in the industry, giving the Company tremendous leverage to a rising gold price. The market currently capitalizes these ore reserves at approximately US$3.70 per ounce in the ground net of cash.
The forward-looking information in this press release addresses future events involving known and unknown risks and uncertainties that could cause actual results to vary materially from projected results. These risks and uncertainties include those described in the Company's Annual Information Statement filed on SEDAR and the 20-F filed with the US Securities and Exchange Commission on EDGAR.
Internet - goldreserveinc.com
CONTACT: A. Douglas Belanger, Executive Vice President, 926 W. Sprague, Suite 200, Spokane, WA 99201, Tel. (509) 623-1500, Fax (509) 623-1634