No further word on Crystallex` Las Cristinas gold project as company continues to fulfil obligations

No further word on Crystallex' Las Cristinas gold project as company continues to fulfil obligations Crystallex still waits for the final word on the possible expropriation of Crystallex as Venezuela enters yet another round of elections on November 23.

article by Dorothy Kosich

In a financial statement issued Thursday, Crystallex stressed once again that the Toronto-based junior has not been notified by any Venezuelan government entity of any changes to the control of the Las Cristinas gold project.

Meanwhile Crystallex said it is "taking the necessary steps to protect its shareholder and stakeholder rights, including the preservation of rights to pursue further legal avenues both inside and outside of Venezuela."

However, Crystallex is still waiting to hear an explanation from the Basic Industries & Mining Ministry (MIBAM) in the wake of a reported statement by President Hugo Chavez and Mining Minster Rodolfo Sanz earlier this month that a memorandum of understanding will be signed with Canadian gold mining company Rusoro to jointly operate the Las Cristinas and Las Brisas gold project with the government.

At the end of September 2008, the company stopped mining at the Tomi and La Victoria mines (the El Callao properties) due to the handover of Revemin to Minerven, a Venezuelan state-owned company, effective October 1, 2008. The mill staff of Revemin and some of the mining employees have gone to work for state-company Minerven.

It should be noted that Venezuela has regional elections scheduled on the 23rd of this month. The elections will choose governors for the 22 regions of Venezuela. Of the 22 regions, Chavez supporters are expected to capture 16 of those governorships.

FINANCIALS

Crystallex reported that it had cash and cash equivalents as of September 30, 2008, of $44.6 million. The company reported a loss of $25.3 million or negative 9-cents per share including $2.9 million of an unrealized foreign exchange loss for the first nine months of this year compared to a loss of $13.1 million (negative 6-cents/sh).

A loss of $1.6 million (negative 1-cent/sh) was reported for the third quarter of 2008, compared to a loss of $5 million (negative 2-cents/sh) reported during the third-quarter of 2007. The losses in the first nine months and third quarter of this year "are principally attributable to the aggregate of corporate general and administrative costs, interest expense, and the effects of foreign exchange on the translation of future income tax liability," according to the company.

Expenditures were $17 million and $4.3 million on Las Cristinas for the nine months and three months ended September 30, 2008, respectively as Crystallex awaits a final decision on the project permit.