Crystallex says gold reserves at Venezuela mine higher than earlier estimates

<a href=www.canada.com>Canadian Press Monday, March 31, 2003

VANCOUVER (CP) - Crystallex International Corp. says there are 9.5 million ounces of potential gold reserves at the Las Cristinas deposit, a Venezuelan property the company is developing but which a rival company is also claiming.

Crystallex said Monday that potential yield from the Las Cristinas deposit in Bolivar State, Venezuela - which Vancouver miner Vanessa Ventures Ltd. is also claiming - is higher than original estimates of proved and probable reserves. However, news of the higher estimates failed to ignite interest in Crystallex's stock, which fell three cents to $1.54 on the Toronto Stock Exchange.

Vancouver-based Crystallex announced in September that it had taken possession of the Las Cristinas property, which is considered one of the world's largest undeveloped gold deposits. The announcement came after Vanessa Ventures said the Venezuelan Supreme Court will examine two legal actions in a dispute over ownership of Las Cristinas.

A Vanessa subsidiary in the South American country has alleged that a contract between Crystallex and state-owned Corporacion Venezolana de Guayana violates Venezuela's constitution and its mining law on details of foreign ownership.

In mid-March, Vanessa said it was preparing a comprehensive update on the Las Cristinas legal issues for its shareholders. The company also criticized Crystallex for its claims on the property, saying that Crystallex's "statements either contain the facts veiled in misleading language or omit the facts altogether and present false information."

Crystallex said Monday that the latest estimates on the Las Cristinas mine were conducted by Mine Development Associates of Reno, Nev.

"The data confirms that Las Cristinas is one of the world's largest undeveloped gold deposits with excellent potential to grow in size," Crystallex CEO Marc Oppenheimer said in a release.

Crystallex said Montreal-based SNC-Lavalin Group Inc., one of the world's biggest engineering companies, has already begun work on a feasibility study for the development and construction of the mine and a processing mill.

The first phase of development at Las Cristinas is expected to cost $150 million US. Over time, all three development phases will cost $430 million US.