Intense times for Gold Reserve ... still seems unable to recover after the company's stock plummeted more than 50%

Gold Reserve Inc. still seems unable to recover after the company's stock plummeted more than 50% since April 30, 2008, when they announced that their permit for the commencement of the construction phase of the Brisas Project in Venezuela was to be rescinded. Gold Reserves was told by the Venezuelan Ministry for the Environment that the permit was to be rescinded because of the the existance of 'environmental degradation and affection on the property.' The company still hopes a permit might be granted by Venezuelan President Hugo Chavez. Despite troubles with permit the company had already acquired some mining equipment. Gold Reserve stated the construction of their new mine should be finished by 2011. The company estimates this mine will cost over $731 million to build. In addition to acquiring the permit, Gold Reserve also has to raise capital for their venturesome project. It hopes to secure $425 million through debt financing.
For the time being the company has no operating mines. Over the past three years they have posted cumulative net losses in excess of US$28 million according to their latest SEC filing. The company had nearly $94.7 in cash and cash equivalents at the end of 2007. According to the company these funds are adequate to fund pre-construction activities into 2009. Still, if the company cannot obtain the last permit their future will be dark.