Crystallex says Venezuelan mine talks encouraging

Crystallex International (KRY) said on Wednesday that recent discussions with Venezuela surrounding its Las Cristinas gold project have been encouraging and that the company will begin construction as soon as an environmental permit is issued. The Toronto-based company has been trying to nail down approval for the massive deposit, which has reserves of 17 million ounces. Crystallex got a boost on Aug. 22 when it learned the Venezuelan Environment Ministry considered modifications to the company's permit application were viable. Its shares have plunged over the past year as the process has dragged on, but the stock has strengthened since the late August announcement. Crystallex was down 7 Canadian cents, or 5.6 percent, at C$1.18 on the Toronto Stock Exchange on Wednesday. The company also said it had begun discussions with the Venezuelan Mines Ministry regarding the future of its Revemin gold mill, for which Crystallex's ore supply has been exhausted. The company said it was too early to comment on what decision could be reached about the mill's future. Revemin has capacity of 1,350 tonnes of ore a day.