Gold analyst Ing explodes "one of the biggest myths" on Las Cristinas gold mine

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

In the latest issue of his Gold Stealth Bull Market financial newsletter, analyst John Ing says that one of the biggest myths on the North American stock markets is that Toronto headquartered Crystallex International Corporation (KRY) does not own the rights to the gigantic Las Cristinas gold mine in southeastern Venezuela.

Ing writes: "Las Cristinas was awarded to Crystallex on September 17, 2002 ... this exclusive operating agreement was signed with Venezuelan Guayana Corporation (CVG) a multi-billion state-owned company that was given authority to contract with third parties over the Las Cristinas property from the Ministry of Energy and Mines, as the executing authority under the Mining Law."

"Following the cancellation of the Placer Dome contract due to a notice of default (no gold was produced) the property was repossessed on behalf of the Republic of Venezuela under Venezuelan mining law. The contract was cancelled in early November 2001 and the assets were repossessed November 16, 22001. The contract was gazetted and the copper concessions were cancelled on March 6, 2002 ... Crystallex owns the rights: fact."

Ing continues: Crystallex has reported a reserve update at the 100% owned Las Cristinas gold project in Southeastern Venezuela where an independent study by Reno-based Mine Development Associates shows the deposit holds proven and probable reserves of 9.5 million ounces, grading 1.33 grams per tonnes.

Crystallex has hired SNC Lavalin, to complete a feasibility study of Venezuela's largest undeveloped deposit is expected this fall ... current plans call for an initial 20,000 tonnes per day operation, capable of producing oxide and sulfide ores with a capital expenditure between $225-$230 million. The first phase should produce 275,000-280,000 ounces of gold.

Deutsche Bank has been selected as project finance advisor and, despite earlier ownership questions, we believe that Las Cristinas does not have any of the political problems or lack of economics of other major projects.

Crystallex will not have to move villages, cemeteries or change their processing facilities to mine Las Cristinas ... the government is Crystallex' partner and with power, water and abundant labor, this is an excellent project.

The Gold Stealth Bull Market financial newsletter concludes: "We continue to recommend purchase since Crystallex has one of the lowest market cap per ounce of production with respect to other major underdeveloped projects. As such the longer the shares drift down here, the more likely the company will become a takeover candidate. Maison has assisted the company in recent financings."