On top of having the dubious distinction of having their position "closed out" by one of their former champions--Mark Turner of Hallgarten & Co.--Crystallex (KRY) shareholders were shocked by the news that Paradigm cut their overly rosy target from C$8.50 to C$5.50. Apparently, "Hanio" Hugo Chavez is getting ready to deliver some more bad news. Moreover, the opposition newspaper El Universal has recently reported (7-11-2007) that Gold Reserve (GRZ), which owns the rights to the adjoining Las Brisas deposit, has had absolutely no success in getting the final "exploitation license" required.
More troubling, though, is that El Universal details on the English version of their website that the Venezuelan Ministry of the Environment takes the view that:
Granting of permits for gold exploitation on south Venezuela is being assessed at leisure, because the economic benefit is lower than potential environmental damages.
To further round out the picture, El Universal reported that Minister of the Environment Yuvirí Ortega during a press conference stated that Venezuela is "making a comprehensive review of these applications for exploitation" because "mining has caused most serious damages to the country." If the writing wasn't already on the wall and Crystallex shareholders did not take their cue from Mark Turner of Hallgarten & Co. previously, I would strongly argue that now is the time to "close out" their positions while they can. The future does not bode well.
Mayday is an emergency code word used internationally as a distress signal in voice procedure radio communications, derived from the French venez m'aidez, meaning "come [to] help me." When the "venez" is dropped and the remaining words are pronounced in English, you get "mayday", a word currently understood around the world as a distress call. It is used to signal a life-threatening emergency by many groups, such as police forces, pilots, the fire brigade, and transportation organizations. The call is always given three times in a row ("Mayday Mayday Mayday") to prevent mistaking it for some similar-sounding phrase under noisy conditions, and to distinguish an actual mayday call from a message about a mayday call.
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