Category: Uncategorized
- Published: 29 November -0001
News Release: Reserve and Resource Estimates for Las Cristinas
Crystallex International Corporation announced that Mine Development Associates ('MDA') of Reno, Nevada has completed reserve and resource estimates for the Las Cristinas gold deposits located in Bolivar State, Venezuela.
MDA Report highlights:
-- Measured and Indicated Resources: 439 million tonnes at 1.09 grams of gold per tonne (15.3 million ounces)
-- Inferred Resources: 208 million tonnes at 0.91 grams of gold per tonne (6.1 million ounces)
-- Proven and Probable Reserves: 224 million tonnes at 1.33 grams of gold per tonne (9.5 million ounces) -- Mineralization remains open at depth
'The release of the MDA data represents a major milestone for our Company, our shareholders and the people of Bolivar State, Venezuela who will directly benefit from this project,'said Marc J. Oppenheimer, President and CEO of Crystallex. He continued, 'The data confirms that Las Cristinas is one of the world's largest undeveloped gold deposits with excellent potential to grow in size. More specifically, the report concludes that with additional drilling at least a portion of Inferred Resources will likely be upgraded to the Measured and Indicated categories which should add to the reserves. These data certainly validate the intensive efforts over the past several years which resulted in Crystallex securing the exclusive mining rights to this valuable deposit.'
'This is a deposit of impressive size,'said Ken Thomas, newly appointed Chief Operating Officer of Crystallex. 'I look forward to working with our Government partners in Venezuela to bring this important property into production. A significant amount of preparatory work has already been done,'Thomas added noting that, 'SNC-Lavalin is well underway with its work on the Feasibility Study for the development, construction and operation of a mining and processing facility.'
The resource and reserve estimates were calculated for two near contiguous deposits known as Conductora/Cuatro Muertos ('CO/CM') and Mesones/Sofia ('MS/SO'). Mineralization at CO/CM is contained within a moderately-dipping zone, 3 kilometres long and up to 400 metres thick. Mineralization is hosted by a shear zone characterized by foliation-parallel pyrite disseminations and crosscutting quartz-carbonate-pyrite-chalcopyrite veinlets. Alteration assemblages at CO/CM include biotite, epidote, carbonate, silica and tourmaline. The MS/SO deposits are predominantly tourmaline-bearing breccia pipes associated with intense silicification, potassium feldspar alteration, and coarse pyrite and chalcopyrite mineralization.
The resource estimates for the two deposits were made using geologic modeling and kriging techniques. The modeling took into account material types, grade domains, and geologic features. At a cutoff grade of 0.50 grams of gold per tonne, the resources for the Las Cristinas deposits are as follows:
LAS CRISTINAS RESOURCES
Deposit Measured
Tonnes g/t Ounces
Au
CO/CM 48,333,000 1.21 1,879,000
MS/SO 9,405,000 1.20 364,000
Total 57,738,000 1.21 2,243,000
Deposit Indicated
Tonnes g/t Ounces
Au
CO/CM 343,588,000 1.09 11,986,000
MS/SO 37,605,000 0.91 1,099,000
Total 381,193,000 1.07 13,085,000
Deposit Inferred
Tonnes g/t Ounces
Au
CO/CM 187,382,000 0.94 5,633,000
MS/SO 20,507,000 0.65 431,000
Total 207,889,000 0.91 6,064,000
Reserves were developed from Measured and Indicated resources by establishing the ultimate economic pit limits using Medsystem Lerchs-Grossman pit optimization software. The economic calculations were based on a gold price of US$325 per ounce and variable cutoff grades of about 0.50 grams of gold per tonne and higher, dependent upon material type. In-pit reserves, estimated in accordance with CIM Standards and National Instrument 43-101, are as follows:
The reserves are contained in two separate pits. The CO/CM pit will be the deeper of the two, at 300 metres below surface and with an overall strip ratio 1.34 to 1.
LAS CRISTINAS RESERVES
Deposit Category Tonnes Grade Ounces Strip
(Au g/t) Ratio
CO/CM Proven
34,133,000 1.43 1,569,000 1.30:1
Probable 167,955,000 1.31 7,073,000
MS Probable 21,860,000 1.28 900,000 1.89:1
Total Proven 34,133,000 1.43 1,569,000 1.34:1
Probable 189,815,000 1.31 7,973,000
Total Proven &
Probable 223,948,000 1.33 9,542,000 1.34:1
Mineralization at both CO/CM and MS/SO is open at depth. In addition, the pits include inferred resources that could not be categorized as reserves because of insufficient drill density. Thus, there is excellent potential for increasing resources, adding reserves, and decreasing the strip ratio, by undertaking additional drilling.
The reserve and resource estimates are based on a diamond drill data base of 98,100 metres in 894 holes and 116,525 assayed core intervals. During January and February of 2003, Crystallex, under the supervision of Dr. Luca M. Riccio, P. Geo., Crystallex's Vice President of Exploration and Gregory Maynard, P. Geo., on behalf of MDA, completed a verification program aimed at validating a previous operator's drill-core assays. The
verification program included 2,188 metres of drilling in 11 holes that twinned holes completed by a previous operator and assaying of 1,089 core samples, 55 blanks, 110 checks and 110 standards. In addition, 262 pulps, 200 rejects and 342 quarter core samples from previous drilling were also re-analyzed. Assay results from the verification drilling and check sampling programs corroborate the general tenor of mineralization reported by the previous operator. All samples from the verification program were prepared at Triad Laboratory in Venezuela. Chemex Labs in Vancouver, Canada assayed 74 % of the samples. The remaining samples were assayed at Triad. The program was managed by qualified person Dr. Luca Riccio, P.Geo., with assistance during part of the program by qualified person Gregory Maynard, P.Geo., on behalf of MDA.
The persons responsible or involved in the resource and reserve estimations on behalf of MDA included Steven Ristorcelli, P. Geo., and Scott Hardy, P. Eng., both qualified persons for the purposes of National Instrument 43-101, with geologic input from Dr. Luca Riccio, P. Geo. An executive summary of this study will be filed on SEDAR (http://www.sedar.com) within 30 days of the issuance of this press release.
Future Development:
On February 12, 2003, Crystallex awarded to SNC-Lavalin Engineers & Constructors Inc. ('SNCL') the contract to undertake a Feasibility Study for the development, construction and operation of a mining and processing facility on its 100% controlled Las Cristinas project in Venezuela. The mandate to SNCL contemplates an initial 20,000 tonne per day operation capable of processing oxide and sulphide ores. The current schedule calls for the SNCL Feasibility Study to be completed this summer. In addition, SGS Lakefield Research Limited, Canada, have been contracted to run a metallurgical pilot plant to confirm the flowsheet for the Feasibility Study.
About Crystallex:
Crystallex International Corporation is a Canadian based gold producer with operations and exploration properties in Venezuela and Uruguay. Crystallex shares are traded on the TSX and AMEX Exchanges. Crystallex has been focused on strategic growth in South America and recently signed a definitive agreement with respect to the Las Cristinas mining properties in Venezuela and has taken possession of those properties. Crystallex is currently working on the final feasibility study to support its development plans for Las Cristinas.
Note:
This news release may contain certain 'forward-looking statements'within the meaning of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Crystallex, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading 'Risk Factors'and elsewhere in documents filed from time to time with The Toronto Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities.
Cautionary Note to Investors - The United States Securities and Exchange Commission permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically extract or produce. We use certain terms in this news release, such as 'resource,''measured resource', 'indicated resource'and 'inferred resource,'that the SEC guidelines strictly prohibit us from including in our filing with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F. Furthermore, reserves have been calculated in accordance with NI 43-101, as required by Canadian securities regulatory authorities. For United States reporting purposes however, a full feasibility study is required in order to classify mineralization as reserves. Accordingly, until we complete our final feasibility study, we will not report reserves for Las Cristinas for U.S. reporting purposes.
Investors
CONTACT: TEL: 201-541-6650 A Richard Marshall, VP,
Crystallex International Corp
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Website: http://www.crystallex.com
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