Mr Chavez unveils Russian gold mining venture

Moscow Times cited Mr Hugo Chavez president of Venezuelan as saying that Venezuela & Venrus a joint venture of Rusoro Mining and the Venezuelan government was formed to mine Las Cristinas, a deposit containing an estimated 35.2 million ounces of gold.

Mr Chavez said that Venezuela wants to develop the mine this year under the
control of socialism.

The mine covers five concessions, naming 4 where Crystallex International of Toronto has been awaiting permits to begin mining and one concession belonging to Gold Reserve, which is also awaiting a mining permit. He said that "The Venezuelan state is getting ready this year for the exploitation and control of the gold deposit Las Cristinas. Venrus was formed last year.”

Las Cristinas has been the subject of decades of changing corporate control. After Placer Dome was permitted to begin mining some of the concessions in 2001 it sold out to Vannessa Ventures. Chavez expropriated the site and awarded it to Crystallex. Gold Reserve has held its concession throughout the saga.

Rusoro is a Russian funded company that is buying gold deposits in Venezuela and is in the midst of a hostile takeover bid for Gold Reserve. Venrus is a joint venture between Rusoro and Venezolana de Guayana. Venrus currently operates the Isidora mine, which Rusoro bought from Hecla Mining last year.