China Shandong Gold in cooperation agreement with CVG Minerven

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Tuesday, May 20, 2003 By: David Coleman

Venezuelan Guayana Corporation (CVG) officials have announced a cooperation agreement with China's Shandong Gold Group to raise gold production at the Sosa Mendez mine in El Callao 50% to reaching an annual 4.6 metric tonnes at a projected average price of US$325 per troy ounce.

The reactivation of the Sosa Mendez mine after 44 years of inactivity was settled in concert between CVG gold mining subsidiary Minerven and Shandong Gold subsidiary Jinyan de Venezuela to initiate new well construction, mine drainage, drift repairs and basic services at an investment of $ 13 million to be increased as exploration cuncovers new reserves.

The official opening of the mine was attended by the Peoples' Republic of China Ambassador to Venezuela, Wang Zeng who confirmed China's interest in deepening a cooperation agreement signed between China and Venezuela 2 years ago ... "this is a business that guarantees profits for both countries and it will help to reinforce other development alliances in Guayana regional agriculture."  Ambassador Zeng says the importance of these strategic alliances relies on fund-raising and technical cooperation with other countries in a scenario where China has now invested some US$1.3 billion in Latin America ... half of it in Venezuela ... "we have a great confidence in Venezuela!"

CVG president, Major General (ret.) Francisco Rangel Gomez says the mine start-up gives a greater contribution to the creation of employment and the economic reactivation of the Guayana region ... “330 jobs will be created for the construction stage and the operation stage will take on another 240 direct jobs within 20 months ... a local workforce will be employed rather than being hired in from abroad."

Rangel Gomez is confident that Venezuela's mining sector is strengthened Venezuela's economic potential ... "we had a clear vision of this two years ago, but now we are relying strongly on foreign operators such as Crystallex International, Hecla, Shandong Gold and others to carry out projects with medium and long-term investments ranging from US$413 million to US$500 million qualifying investor confidence in the country ... it's like betting on a sure fire winner.”