Comments on J.L Bane's articles

Comments on J.L Bane's articles Comments on J.L Bane's articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/jl-bane/articles Crystallex: Promotion, Politics and Permits http://seekingalpha.com/article/34726/comments?source=feed#comment-423713 423713 Thu, 12 Mar 2009 17:59:38 -0400 Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-97947 97947 Sun, 07 Oct 2007 20:38:10 -0400 One thing I think Bane fails to mention is the 9.9% ownership of the shares by GG, don't you think they did some due diligence before investing last year?
Also, what about the fact that KRY carries the right to occupy the land, signed by Chavez's gov't, not the previous admin, has a permit to mine aggregate signed by the gov't, has a legal binding contract to OPERATE the mine. KRY does not own anything but an operating contract. One reason why it's hard to value the company compared to other juniors that actually own a deposit. IF their operating contract is pulled, and or they are forced to renegotiate the operating contract they have recourse in the courts due to CA and VZ treaties.
This deposit is over 20 million ounces and has taken 30 years from initial discover to get to this point. What's another couple of months?]]> Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94653 94653 Tue, 28 Aug 2007 11:31:31 -0400 Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94639 94639 Tue, 28 Aug 2007 08:38:50 -0400 Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94582 94582 Mon, 27 Aug 2007 12:27:44 -0400 Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94581 94581 August 20, 2007 press release into two separate and distinct ideas:

1.) the Company is not aware of any adverse corporate developments - other than general stock market conditions - which could account for the recent trading activity; 2.) and that, to its knowledge, the process for the issuance of the environmental permit for Las Cristinas remains on track

Let’s deal with the first part about not being aware of any adverse corporate developments, etc. I suspect a likely motivation for the Crystallex press release was to assuage the concerns of investors who were alarmed, not by general market conditions (if that were the case, why hasn’t virtually every publicly-traded company whose share prices have been caught in the sub-prime mortgage downdraft issued a similar press release?), but rather, by the comments you refer to being made by Minister of Basic Industries & Mines José Khan about migrating mining companies to state-controlled-majority joint ventures. Minister Khan's statements were made at a press conference given by the Economic Cabinet at Miraflores Palace on Friday, Aug 17, 2007. The Economic Cabinet is tied to the Comisión Central de Planificación, or Central Planning Commission (if you've been following Venezuelan political & economic news, you'll know that President Chavez set up this centralized planning cabinet on June 22, 2007). It was actually Dow Jones that carried the first comments by Minister Khan regarding the Ministry’s contemplation of moving private commercial mining enterprises to state-majority-controlled joint ventures. DJ Newswires issued a series of updates on the Sidor situation on August 17, 2007, both in Spanish, as well as English, beginning at 14:44 ET, but importantly, the articles also made reference to the mining sector. The relevant section of the most complete report available to newswire subscribers only (thus no URL available) which was issued at 16:42 ET reads as follows:

Khan also discussed the government's ongoing efforts to enact a new mining law. He insisted that under the new legislation private mining companies would "still exploit natural resources but in association with the government." Plans to create a national mining company to serve as the equivalent of Petroleos de Venezuela in the oil business are still on the table, he added. The Chavez administration has said this new state-owned enterprise will serve as the "PdVSA for gold and diamonds." "Mining companies will sign join ventures with the state mining company," Khan said. "That's the one of the proposals we're looking at." If Venezuela pushes mining firms to sign deals with the state, "there will be a transition process so companies can adjust, and everything can move forward in good terms," he said.

For those without a newswire subscription, a summary of the other related DJ headings (in English) may be found here. A Spanish version of the article can be found at the following link, albeit it appears to be an earlier, less complete edit than the English report that came out at 16:42 ET. So, while the article in El Universal which you refer to is indeed recent – in fact, it was from the paper’s August 18, 2007 edition - it was actually issued the day following the Dow Jones reports (readers who wish to read the full El Universal article for themselves may find it here). [it should be clarified that the paper quotes José Khan as stating that the term “minería” should be added to Article 302 of the Constitution – this is the Spanish word for “mining”, as opposed to “minera”, the word you’ve used, which is Spanish for “mine”.] Given these comments, I suspect there might have been pressure (either external or internal to the company) to issue a comforting release to diffuse the situation. If further incentive was required, it may have been provided early that same day, on August 20, 2007, when El Universal published another article about how President Chavez’s Constitutional reforms would give the State more control over property. The President’s proposal specifically refers to the right of the State to reserve the exploitation of natural resources deemed to be of strategic value to state-owned entities or joint ventures in the 9th paragraph of this article from Aug 19, 2007. I agree with you, though, that it is unusual that if the press release was issued in order to calm investor fears in the face of the Minister’s comments, the absence of any reference to the Minister’s comments seems rather odd. Furthermore, if it is the case that the press release was issued in response to these comments, some might consider it a stretch for the company to state in their August 20, 2007 press release that they “[are] not aware of any adverse corporate developments - other than general stock market conditions - which could account for the recent trading activity.” Perhaps it is because it is not yet a “corporate development” until it actually happens - at this point it appears to be discussion about the direction the industry could go. This raises the question of why provide a reference to the comments made by National Assembly Congressman Ricardo Gutierrez in the first place. As you’ve already noted, the Congressman presides over the Assembly’s Economic Development Commission, but this body has nothing to do with Mining (there is a separate Energy & Mining Commission, with its own Mining Sub-Commission), nor the Environment (there is also a separate Environmental Commission), arguably the two most relevant commissions when it comes to Las Cristinas. Though it should be noted that it is actually the Environmental Ministry, not any National Assembly Commissions & Sub-commissions that is empowered to actually grant permits. Assemblyman Gutierrez has indeed made comments in favour of the Las Cristinas project in the past. These supportive were made within weeks of the company’s Annual General Meeting of Shareholders in 2006, in response to a number of negative media reports. On June 12, 2006, a series of articles appeared on El Universal and Bloomberg, in which 40-year old José Ramón Rivero, President of the Mining Sub-Commission, made assertions that mining contracts would be migrated to state-majority joint ventures. See: http://www.eluniversal.com/2006/06/12/eco_art_12204E.shtml http://www.eluniversal.com/2006/06/12/eco_apo_12204F.shtml http://www.bloomberg.com/apps/news?pid=10000086&sid=aDlZzsKdeWTY&refer=latin_america http://www.bloomberg.com/apps/news?pid=10000086&sid=as1FHOwD_AeE http://www.bloomberg.com/apps/news?pid=10000086&refer=news_index&sid=aq7k7OXo92xI http://www.bloomberg.com/apps/news?pid=10000086&sid=anODHCU6J.Bo This was just weeks before the company’s AGM that year, and on June 13, 2006, Crystallex issued a press release in response to the Bloomberg articles in particular. In this press release, the Company reiterates the supportive comments made by Congressman Gutierrez which were published in an earlier article which appeared in El Diario de Guayana a week earlier in the June 5, 2006 edition. Those that wish to read the Crystallex press release may find it here. In the June, 2006 press reports (there were many – I’ve not included them all) and the company press release of that month, Assemblyman Gutierrez is identified as the President of the National Assembly’s Mining Commission (as distinct from the Mining Sub-Commission, which was headed by José Ramón Rivero at the time). Congressman Gutierrez is now with the Commission for Economic Development and Deputy Rivero is now the Minister of Labour. Let’s move to the present day. On August 13, 2007, VHeadline published a synopsis of what it reports it received in an e-mail from the Economic Development Commission, in support of moving the Cristinas project forward. The next day, on Aug 14, 2007, an article bylined, “Especial” appeared in a local Bolivar State newspaper, El Luchador, with Congressman Gutierrez’s picture and the same supportive comments. Finally, on August 15, 2007, VHeadline had the radio interview with the same Deputy Ricardo Gutierrez. When Crystallex issued their press release on August 20, 2007, they referred to segments of the radio interview, which by this point was already 5 days old - presumably not particularly newsworthy enough to have issued a press release in the day immediately following the radio broadcast. But, with the more recent comments by Mines Minister José Khan out on the newswires and in the local Venezuelan press on August 17 & 18, I suspect it was handy material that demonstrated at least someone supports the project, even if Congressman Gutierrez is not the decision-maker. What is interesting about the August 14, 2007 El Luchador article (the “Especial” byline would seem to indicate it was either a press release or sponsored article) and the subsequent radio interview by Ricardo Gutierrez is that it follows circumstances quite similar to when a different National Assembly politician, Congressman Luis Gamargo, issued a press release just over one year earlier on June 15, 2006. In that press release, Congressman Gamargo, who was Vice-President of the Assembly’s Administration & Public Services Commission, came on the scene to contradict claims by then-President of the Mining Sub-Commission, José Ramón Rivero on the subject of Nationalization of Las Cristinas, even though José Ramón Rivero was President of the Mining Sub-Commission and Deputy Gamargo’s Commission has nothing to do with Mining, nor, it would seem, Las Cristinas. One year later, on June 22, 2007, Congressman Gamargo issued another press release – this time just prior to the company’s AGM - in which he and another politician, Congressman Fernando Vásquez (who presides over the National Assembly’s Sub-commission of National Parks and Protected Areas under Special Administration – what that has to do with Mining is anyone’s guess) expressed their support for the Crystallex Las Cristinas project. Their press release (in which they did not actually purport to speak on behalf of any Commission or Sub-commission) echoed precisely what Crystallex had said in their own June 14, 2007 press release, noting that they expect the long-awaited environmental permit should be issued once payment of the bond and taxes has been confirmed. The Congressmen’s press release was subsequently picked up by El Mundo on June 26, 2007 (though they did misspell Congressman Gamargo’s surname). It does seem that congressmen with no apparent direct portfolio involvement in either Mining or Environmental Permits are quite ready to weigh in on the subject of Las Cristinas when either the Minister of Mining or the President of the Mining Sub-commission speak about potential negative implications for the project, though frankly, I’m not sure that is altogether unusual – the same thing happens with elected officials (whether they be part of the government or in the opposition) throughout the world. Frankly, in my view, unless it is either the current Minister of Mines, José Khan, the Vice-Minister of Mines, Iván Hernández, the Minister of Environment, Yuvirí Ortega, or President Chavez himself, it seems besides the point what any other politician has to say on the subject of permits for Las Cristinas. Now, let’s address the second part of the press release – that the “process for the permit issuance is on track” (paraphrased). I don’t think anyone can deny that the company has been saying the permit is “in the final administrative phase”, “imminent”, should be here “by Easter”, etc., for a number of years, not just months. That begs the question of whether the “process” is even fully understood by the participants – it certainly has never been clearly disclosed. I, too, have asked the question (at least rhetorically) regarding the involvement of President Chavez. If accurate, the news reported by VHeadline would appear to be in conflict with statements attributed to the company such as, "We do understand that we aren't the only issue on the Minister and Vice Ministers Desk and are somewhere in line," as it would seem – at least according to VHeadline’s reports - that the permits may now with President Chavez, and no longer with the MinAmb. Also, if the permit is with the President, it would seem to be outside of the normal process for permit issuance, which makes one wonder how the Company can reasonably claim the process is on track. Indeed it raises questions. Is the permit (or permits?) indeed with President Chavez as reported by VHeadline, and which was subsequently regurgitated by Mineweb on August 14, 2007. Is this outside of the established and normal process for permit issuance or is intervention by, or escalation to, the Head of State covered by the existing Mining Law and normal bureaucratic process? If it is a deviation from established process, might this represent a change in the risk to shareholders (either positively or negatively)? Certainly a "Go/No Go" decision by President Chavez would appear to be extraordinary with regards to the normal bounds of the permitting process - I know of no other Venezuelan miner that has had their permits processed by President, at least not “officially”. This said, the article is consistent with the earlier article by VHeadline reporter Patrick O'Donoghue which was published in Las Verdades de Miguel on July 27, 2007. Readers will recall that in a June 6, 2007 piece, Dow Jones referred to comments by President Chavez, where he said he was waiting to receive a report on Las Cristinas from his Mining Minister, José Khan. Is it good news for Crystallex and its shareholders that the permit is “on the desk of President Chavez”? I am not convinced it is, and while I'll reserve judgment, I will say this: In my view, the value of having clear policies & guidelines in any Administration is that the decision criteria is transparent. Leaving decisions to a single individual to make (in this case President Chavez, presumably) on what might be an arbitrary basis is risky business. Is it a yes or is it a no? Are you in favour today or not? Are there competing interests at work behind the scenes? Can the decision be appealed to a higher authority either by you or by your competitors (in this case, presumably not)? Can the decision subsequently be rescinded by another administration? With a pivotal decision such as this in the hands of the President, these types of questions pose a significant risk (in my view). You raise a point about lenders being able to call in a USD $100 million loan should the company lose majority control of the Las Cristinas project. While this indeed may be a risk should the State impose a majority interest joint venture on the company through a renegotiation of the existing Mine Operating Agreement (MOA), it would appear that the right to call the loan is elective, rather than mandatory on the part of the lender. Not knowing who that party might be, I am not certain it is safe to assume with any degree of certainty that it would actually be called, should such circumstances come to bear. Meanwhile, be it Crystallex or any of the other foreign commercial miners working in Venezuela, I’d suggest there are plenty of issues to be concerned about without having to dissect press releases. Not only have there been multiple media reports over the course of the last week that Gen. Daniel Machado has been or will let go as the head of the CVG (with rumours that Minister José Khan will take over as President of the CVG, in addition to retaining his role as Minister of Basic Industries & Mines), widespread flooding in El Callao & Sifontes (declared a state of emergency) which in my opinion could may impact Q3 production, seemingly endless labour disputes, as well as – how shall we say it - a novel proposal by Minister José Ramón Rivera (who, as noted above is now the Minister of Labour) that the work week be reduced from 44 hours to just 36 hours per week, but with employees continuing to receive the same basic salary or wage. If approved and if employers are to maintain the same levels of productivity, this could represent at least a 22% increase in wages, discounting any overtime allowance. The cost could be even greater if an entirely new shift of workers would be required to make up the time. I’m still not entirely clear how working just 6 hours Monday through Thursday and 4 hours on Friday adds up to 36 hours, but I’m sure it’s expensive. Add to that the fact that President Chavez has developed a rather socialist view of private property, though he does attempt to give some comfort to those who are afraid he might be a Marxist (this said, readers might also find an example provided by Veneconomy’s Roberto Bottome, entitled, “What’s a contract worth?” quite interesting) in an environment where it has taken well over 2 years and still there is no New Mining Law, despite ongoing promises that it is just around the corner (and presumably then, players will be advised of the new rules of the game, having already been dealt their cards and anted up) and it seems to me as if there just might be better places to invest one’s hard-earned capital at this time. I feel I should point out that identifying El Universal as an “internet newspaper” as you’ve done in your article is somewhat misleading. While it does have an online presence, it is actually the largest circulating newspaper in Venezuela. I presume you wouldn’t refer to newspapers closer to home such as the Globe & Mail or National Post as internet newspapers, even though they also have a web presence. Lest it not be clear, my point is your readers shouldn’t be given the impression El Universal is a cheap online rag. It isn’t – and they carry many syndicated stories from the newswires, as well as quality articles from their own reporters. NOTE: By way of my own disclosure, while I have owned Crystallex in the distant past and avidly follow the Venezuelan commercial gold mining sector (not company-specific) for close to 10 years, I do not currently have any financial interests (long, short or otherwise) in Crystallex or any of the Venezuelan miners, nor to the best of my knowledge do any of my family or close friends. I don’t anticipate that changing any time soon. Nor am I in any way compensated for my views or opinions. I like to think this affords me the ability to take a dispassionate view of the circumstances and present what are clearly just my own personal observations, in what I hope is balanced and objective manner. I could certainly be mistaken in my personal assessments – thus, I would urge all investors or potential investors to do their own due-diligence and come to their own conclusions.]]> Mon, 27 Aug 2007 12:26:17 -0400 www.marketwire.com/mw/...">August 20, 2007 press release into two separate and distinct ideas:

1.) the Company is not aware of any adverse corporate developments - other than general stock market conditions - which could account for the recent trading activity;

2.) and that, to its knowledge, the process for the issuance of the environmental permit for Las Cristinas remains on track

Let’s deal with the first part about not being aware of any adverse corporate developments, etc.

I suspect a likely motivation for the Crystallex press release was to assuage the concerns of investors who were alarmed, not by general market conditions (if that were the case, why hasn’t virtually every publicly-traded company whose share prices have been caught in the sub-prime mortgage downdraft issued a similar press release?), but rather, by the comments you refer to being made by Minister of Basic Industries & Mines José Khan about migrating mining companies to state-controlled-majority joint ventures.

Minister Khan's statements were made at a press conference given by the Economic Cabinet at Miraflores Palace on Friday, Aug 17, 2007.

The Economic Cabinet is tied to the Comisión Central de Planificación, or Central Planning Commission (if you've been following Venezuelan political & economic news, you'll know that President Chavez set up this centralized planning cabinet on June 22, 2007).

It was actually Dow Jones that carried the first comments by Minister Khan regarding the Ministry’s contemplation of moving private commercial mining enterprises to state-majority-controlled joint ventures. DJ Newswires issued a series of updates on the Sidor situation on August 17, 2007, both in Spanish, as well as English, beginning at 14:44 ET, but importantly, the articles also made reference to the mining sector. The relevant section of the most complete report available to newswire subscribers only (thus no URL available) which was issued at 16:42 ET reads as follows:

Khan also discussed the government's ongoing efforts to enact a new mining law. He insisted that under the new legislation private mining companies would "still exploit natural resources but in association with the government."

Plans to create a national mining company to serve as the equivalent of Petroleos de Venezuela in the oil business are still on the table, he added. The Chavez administration has said this new state-owned enterprise will serve as the "PdVSA for gold and diamonds."

"Mining companies will sign join ventures with the state mining company," Khan said. "That's the one of the proposals we're looking at."

If Venezuela pushes mining firms to sign deals with the state, "there will be a transition process so companies can adjust, and everything can move forward in good terms," he said.

For those without a newswire subscription, a summary of the other related DJ headings (in English) may be found www.latibex.com/esp/pr...">here.

A Spanish version of the article can be found at the following link, albeit it appears to be an earlier, less complete edit than the English report that came out at espanol.news.yahoo.com...">16:42 ET.

So, while the article in El Universal which you refer to is indeed recent – in fact, it was from the paper’s August 18, 2007 edition - it was actually issued the day following the Dow Jones reports (readers who wish to read the full El Universal article for themselves may find it www.eluniversal.com/20...">here).

[it should be clarified that the paper quotes José Khan as stating that the term “minería” should be added to Article 302 of the Constitution – this is the Spanish word for “mining”, as opposed to “minera”, the word you’ve used, which is Spanish for “mine”.]

Given these comments, I suspect there might have been pressure (either external or internal to the company) to issue a comforting release to diffuse the situation. If further incentive was required, it may have been provided early that same day, on August 20, 2007, when El Universal published another article about how President Chavez’s Constitutional reforms would give the State more control over property. The President’s proposal specifically refers to the right of the State to reserve the exploitation of natural resources deemed to be of strategic value to state-owned entities or joint ventures in the 9th paragraph of this www.eluniversal.com/20...">article from Aug 19, 2007.

I agree with you, though, that it is unusual that if the press release was issued in order to calm investor fears in the face of the Minister’s comments, the absence of any reference to the Minister’s comments seems rather odd. Furthermore, if it is the case that the press release was issued in response to these comments, some might consider it a stretch for the company to state in their www.marketwire.com/mw/...">August 20, 2007 press release that they “[are] not aware of any adverse corporate developments - other than general stock market conditions - which could account for the recent trading activity.” Perhaps it is because it is not yet a “corporate development” until it actually happens - at this point it appears to be discussion about the direction the industry could go.

This raises the question of why provide a reference to the comments made by National Assembly Congressman Ricardo Gutierrez in the first place. As you’ve already noted, the Congressman presides over the Assembly’s Economic Development Commission, but this body has nothing to do with Mining (there is a separate Energy & Mining Commission, with its own Mining Sub-Commission), nor the Environment (there is also a separate Environmental Commission), arguably the two most relevant commissions when it comes to Las Cristinas. Though it should be noted that it is actually the Environmental Ministry, not any National Assembly Commissions & Sub-commissions that is empowered to actually grant permits.

Assemblyman Gutierrez has indeed made comments in favour of the Las Cristinas project in the past. These supportive were made within weeks of the company’s Annual General Meeting of Shareholders in 2006, in response to a number of negative media reports.

On June 12, 2006, a series of articles appeared on El Universal and Bloomberg, in which 40-year old José Ramón Rivero, President of the Mining Sub-Commission, made assertions that mining contracts would be migrated to state-majority joint ventures.

See:

www.eluniversal.com/20...

www.eluniversal.com/20...

www.bloomberg.com/apps...

www.bloomberg.com/apps...

www.bloomberg.com/apps...

www.bloomberg.com/apps...

This was just weeks before the company’s AGM that year, and on June 13, 2006, Crystallex issued a press release in response to the Bloomberg articles in particular. In this press release, the Company reiterates the supportive comments made by Congressman Gutierrez which were published in an earlier article which appeared in El Diario de Guayana a week earlier in the www.eldiariodeguayana....">June 5, 2006 edition. Those that wish to read the Crystallex press release may find it www.sec.gov/Archives/e...">here.

In the June, 2006 press reports (there were many – I’ve not included them all) and the company press release of that month, Assemblyman Gutierrez is identified as the President of the National Assembly’s Mining Commission (as distinct from the Mining Sub-Commission, which was headed by José Ramón Rivero at the time). Congressman Gutierrez is now with the Commission for Economic Development and Deputy Rivero is now the Minister of Labour.

Let’s move to the present day. On vheadline.com/readnews...">August 13, 2007, VHeadline published a synopsis of what it reports it received in an e-mail from the Economic Development Commission, in support of moving the Cristinas project forward. The next day, on Aug 14, 2007, an article bylined, “Especial” appeared in a local Bolivar State newspaper, www.elluchador.net/edi...">El Luchador, with Congressman Gutierrez’s picture and the same supportive comments.

Finally, on www.vheadline.com/read...">August 15, 2007, VHeadline had the www.vheadline.com/audi...">radio interview with the same Deputy Ricardo Gutierrez.

When Crystallex issued their press release on August 20, 2007, they referred to segments of the radio interview, which by this point was already 5 days old - presumably not particularly newsworthy enough to have issued a press release in the day immediately following the radio broadcast. But, with the more recent comments by Mines Minister José Khan out on the newswires and in the local Venezuelan press on August 17 & 18, I suspect it was handy material that demonstrated at least someone supports the project, even if Congressman Gutierrez is not the decision-maker.

What is interesting about the August 14, 2007 El Luchador article (the “Especial” byline would seem to indicate it was either a press release or sponsored article) and the subsequent radio interview by Ricardo Gutierrez is that it follows circumstances quite similar to when a different National Assembly politician, Congressman Luis Gamargo, issued a press release just over one year earlier on www.asambleanacional.g...">June 15, 2006. In that press release, Congressman Gamargo, who was Vice-President of the Assembly’s Administration & Public Services Commission, came on the scene to contradict claims by then-President of the Mining Sub-Commission, José Ramón Rivero on the subject of Nationalization of Las Cristinas, even though José Ramón Rivero was President of the Mining Sub-Commission and Deputy Gamargo’s Commission has nothing to do with Mining, nor, it would seem, Las Cristinas.

One year later, on June 22, 2007, Congressman Gamargo issued www.asambleanacional.g...">another press release – this time just prior to the company’s AGM - in which he and another politician, Congressman Fernando Vásquez (who presides over the National Assembly’s Sub-commission of National Parks and Protected Areas under Special Administration – what that has to do with Mining is anyone’s guess) expressed their support for the Crystallex Las Cristinas project. Their press release (in which they did not actually purport to speak on behalf of any Commission or Sub-commission) echoed precisely what Crystallex had said in their own www.marketwire.com/2.0...">June 14, 2007 press release, noting that they expect the long-awaited environmental permit should be issued once payment of the bond and taxes has been confirmed. The Congressmen’s press release was subsequently picked up by El Mundo on www.elmundo.com.ve/Eco...">June 26, 2007 (though they did misspell Congressman Gamargo’s surname). It does seem that congressmen with no apparent direct portfolio involvement in either Mining or Environmental Permits are quite ready to weigh in on the subject of Las Cristinas when either the Minister of Mining or the President of the Mining Sub-commission speak about potential negative implications for the project, though frankly, I’m not sure that is altogether unusual – the same thing happens with elected officials (whether they be part of the government or in the opposition) throughout the world.

Frankly, in my view, unless it is either the current Minister of Mines, José Khan, the Vice-Minister of Mines, Iván Hernández, the Minister of Environment, Yuvirí Ortega, or President Chavez himself, it seems besides the point what any other politician has to say on the subject of permits for Las Cristinas.

Now, let’s address the second part of the press release – that the “process for the permit issuance is on track” (paraphrased).

I don’t think anyone can deny that the company has been saying the permit is “in the final administrative phase”, “imminent”, should be here “by Easter”, etc., for a number of years, not just months. That begs the question of whether the “process” is even fully understood by the participants – it certainly has never been clearly disclosed. I, too, have asked the question (at least rhetorically) regarding the involvement of President Chavez. If accurate, the news reported by VHeadline would appear to be in conflict with statements attributed to the company such as, "We do understand that we aren't the only issue on the Minister and Vice Ministers Desk and are somewhere in line," as it would seem – at least according to VHeadline’s reports - that the permits may now with President Chavez, and no longer with the MinAmb. Also, if the permit is with the President, it would seem to be outside of the normal process for permit issuance, which makes one wonder how the Company can reasonably claim the process is on track. Indeed it raises questions.

Is the permit (or permits?) indeed with President Chavez as reported by vheadline.com/readnews...">VHeadline, and which was subsequently regurgitated by www.mineweb.net/minewe...?">Mineweb on August 14, 2007.

Is this outside of the established and normal process for permit issuance or is intervention by, or escalation to, the Head of State covered by the existing Mining Law and normal bureaucratic process?

If it is a deviation from established process, might this represent a change in the risk to shareholders (either positively or negatively)?

Certainly a "Go/No Go" decision by President Chavez would appear to be extraordinary with regards to the normal bounds of the permitting process - I know of no other Venezuelan miner that has had their permits processed by President, at least not “officially”.

This said, the article is consistent with the earlier article by VHeadline reporter Patrick O'Donoghue which was published in www.lasverdadesdemigue...">Las Verdades de Miguel on July 27, 2007. Readers will recall that in a www.hoovers.com/free/n...">June 6, 2007 piece, Dow Jones referred to comments by President Chavez, where he said he was waiting to receive a report on Las Cristinas from his Mining Minister, José Khan.

Is it good news for Crystallex and its shareholders that the permit is “on the desk of President Chavez”? I am not convinced it is, and while I'll reserve judgment, I will say this:

In my view, the value of having clear policies & guidelines in any Administration is that the decision criteria is transparent. Leaving decisions to a single individual to make (in this case President Chavez, presumably) on what might be an arbitrary basis is risky business. Is it a yes or is it a no? Are you in favour today or not? Are there competing interests at work behind the scenes? Can the decision be appealed to a higher authority either by you or by your competitors (in this case, presumably not)? Can the decision subsequently be rescinded by another administration? With a pivotal decision such as this in the hands of the President, these types of questions pose a significant risk (in my view).

You raise a point about lenders being able to call in a USD $100 million loan should the company lose majority control of the Las Cristinas project. While this indeed may be a risk should the State impose a majority interest joint venture on the company through a renegotiation of the existing Mine Operating Agreement (MOA), it would appear that the right to call the loan is elective, rather than mandatory on the part of the lender. Not knowing who that party might be, I am not certain it is safe to assume with any degree of certainty that it would actually be called, should such circumstances come to bear.

Meanwhile, be it Crystallex or any of the other foreign commercial miners working in Venezuela, I’d suggest there are plenty of issues to be concerned about without having to dissect press releases. Not only have there been multiple diarioelprogreso.com/e....htm”>media reports over the course of the last week that Gen. Daniel Machado has been or will www.nuevaprensa.com.ve...">let go as the head of the CVG (with rumours that www.correodelcaroni.co...">Minister José Khan will take over as President of the CVG, in addition to retaining his role as Minister of Basic Industries & Mines), widespread flooding in El Callao & Sifontes (declared a state of emergency) which in my opinion could may impact Q3 production, seemingly endless labour disputes, as well as – how shall we say it - a novel proposal by Minister José Ramón Rivera (who, as noted above is now the Minister of Labour) that the www.abn.info.ve/go_new...">work week be reduced from 44 hours www.diarioelprogreso.c...">to just 36 hours per week, but with employees www.diarioelprogreso.c...">continuing to receive the same basic salary or www.vtv.gob.ve/VTV(rel..."> wage. If approved and if employers are to maintain the same levels of productivity, this could represent at least a 22% increase in wages, discounting any overtime allowance. The cost could be even greater if an entirely new shift of workers would be required to make up the time. I’m still not entirely clear how working just 6 hours Monday through Thursday and 4 hours on Friday adds up to 36 hours, but I’m sure it’s expensive.

Add to that the fact that President Chavez has developed a rather socialist view of www.abn.info.ve/go_new...">private property, though he does attempt to give some comfort to those who are afraid he might be a Marxist (this said, readers might also find an example provided by Veneconomy’s Roberto Bottome, entitled, www.veneconomia.com/si...">“What’s a contract worth?” quite interesting) in an environment where it has taken well over 2 years and still there is no New Mining Law, despite ongoing promises that it is just around the corner (and presumably then, players will be advised of the new rules of the game, having already been dealt their cards and anted up) and it seems to me as if there just might be better places to invest one’s hard-earned capital at this time.

I feel I should point out that identifying El Universal as an “internet newspaper” as you’ve done in your article is somewhat misleading. While it does have an online presence, it is actually the largest circulating newspaper in Venezuela. I presume you wouldn’t refer to newspapers closer to home such as the Globe & Mail or National Post as internet newspapers, even though they also have a web presence. Lest it not be clear, my point is your readers shouldn’t be given the impression El Universal is a cheap online rag. It isn’t – and they carry many syndicated stories from the newswires, as well as quality articles from their own reporters.

NOTE: By way of my own disclosure, while I have owned Crystallex in the distant past and avidly follow the Venezuelan commercial gold mining sector (not company-specific) for close to 10 years, I do not currently have any financial interests (long, short or otherwise) in Crystallex or any of the Venezuelan miners, nor to the best of my knowledge do any of my family or close friends. I don’t anticipate that changing any time soon. Nor am I in any way compensated for my views or opinions. I like to think this affords me the ability to take a dispassionate view of the circumstances and present what are clearly just my own personal observations, in what I hope is balanced and objective manner. I could certainly be mistaken in my personal assessments – thus, I would urge all investors or potential investors to do their own due-diligence and come to their own conclusions.]]> Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94529 94529 Fri, 24 Aug 2007 12:51:23 -0400
Your defence of Crystallex fails in that you attempt to portray the losses listed in the financial statements as being a result of normal course expenditures for a junior producer. They are anything but. I don't expect you to know that as that type of knowledge is derived from reading the financial statements and the management's discussion of the results which is something you have not done.

As far as Crystallex mining Las Cristinas, that is a question that is still up the in air.

Thank you again for your interest in my article.]]> Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94498 94498 Fri, 24 Aug 2007 10:39:14 -0400 So far, you have failed miserabily on all counts. Without irrefutable evidense, you must be considered just another scumball, with a hidden agenda. If that is indeed the case, you are probably also being paid to write you unsubstantiated vagories by someone who also has ulterior motives.

Here are just a few examples of your desperation: "Crystallex's recently released financial statements are a disgrace."

Everybody knows Crystallex it as a stage of their development from a junior miner to
an intermediate miner, when they will start to mine Las Cristinas or be taken out by a major. Las Cristinas and Crystallex's other assets are what drive the share price...........not there P&L. Nobody expects them to make money at this stage of their development. But you knew that...........Right.....
You just choose to ignore the truth and hope that your readers are as gullible as you think they are.
Isn't that why you get paid for writing your negative half truths.....I mean why would anyone bother to spend as much time and research on writing articles, for the soul purpose of intentionally bashing a company, unless of course, they were paid to do it. What reason could you possibly have that would justify you writing these articles, if you can call them that.

Answer this question and we'll judge your reply on it's merits.

That's just one of the many statements I could pick apart in your article as misleading, vague, unsubstantiated clap trap. But seeing as I'm not paid to do it........like you undoubtably are.....
I think I"ve wasted enough time on you. Oh and speaking of transparent.......you surely are.

You sound an awful lot like "Banana". He had ulterior motives also.

Only Time Will Tell.]]> Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94436 94436 Thu, 23 Aug 2007 15:37:08 -0400
The one constant among the critics of my articles is that they make accusations but no one is actually able to say what it is that I am being untruthful about.]]> Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94423 94423 Thu, 23 Aug 2007 13:26:31 -0400 Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94383 94383 Thu, 23 Aug 2007 08:16:22 -0400 Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94347 94347 Wed, 22 Aug 2007 16:24:42 -0400 You are correct. My Tradewinds comment was not correct. The information was brought to my attention last week, with the 13F mentioned. It was early and my mind not quite clear. But I feel much better now.
I do not write op-eds on Crystallex anymore. As you see, the stock really makes fools out of the people who write about it.
Crystallex made a nice comeback with the rest of the gold markets today, so maybe the market's downturn has affected Crystallex more than Crystallex' issues themselves for investors.
I just wonder why you waste your time on such a dead in the water stock? The answer for me is simple. Massive Gold reserves in a world of dwindling major Gold discoveries, but my patience is wearing thin. Confused, no, but becoming more cautious every day.]]> Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94345 94345 Wed, 22 Aug 2007 16:05:12 -0400
1) Bane has written 5 KRY articles in one year
2) He does not write any other articles on seekingalpha (at least not under this alias)
3)He responded to my post within hours
4)Says he has no position in this stock

Who in their right mind would believe this lying manipulative little squatter???]]> Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94342 94342 Wed, 22 Aug 2007 15:53:04 -0400 Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94338 94338 Wed, 22 Aug 2007 15:30:11 -0400
As to giving any merit to my articles, should you decide to check, when I initially opted to write about Crystallex, the share price was much higher and fanatics like you peppered it with accusations and responses telling me I was wrong and presenting false evidence. This would be proven when the permit arrived shortly and KRY became a success.

The critics were wrong. Should anything more be said ?

Regards,

JLB]]> Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94337 94337 Wed, 22 Aug 2007 15:30:00 -0400 (1) We need to go back to PlacerDome when they broke the contract with the Venezuela agency as they found unprofitable to proceed back in the 1990's. Then PlacerDome at the last minute of contract cancellation for non-performance sold all its interest for $ 50.00 to VANNESSA (based in Canada, Calgary) and without any notification to the Venezuela government agency.
(2) Now, to sell one of the largest gold deposit in the world for $50.00 is a fraud in any country in the world; thus there is a legal battle that need to be settle before las Cristinas can proceed. SO THE DELAY IS BEING CAUSED BY A CANADIAN GALGARY COMPANY THAT COMMITTED A FRAUD AND IS NOT WILLING TO LET IT GO. Behind this scheme is a billionaire from Calgary and a slew of lawyers trying to get some money from the Venezuela government WHO REFUSE TO PAY THESE CROOKS A CENTS!
(3) Of curse, the government of Venezuela has been winning all the legal recourses against this fraud. However, in last and final desperate attempt, Vannessa and its subsidiary in Caracas, cancelled all the appeals to the Supreme Court in Venezuela and proceed to the World Bank to pressure Venezuela government.
(4) The World Bank has no financial leverage whatsoever against Venezuela; furthermore, Venezuela is a sovereign country and the sole owner of their resources. So it is just question of this final hurdle to get settle AND IT WILL BE OVER FOR VANNESSA AND HIS GANGS.
(5) But the good news here is that the NEW CONSTITUTION OF VENEZUELA WILL BE APPROVED BY DECEMBER FIRST WEEK. I am sure this new constitution is addressing this type of fraud and closing the legal vacuum, lobby loops, close back doors that allow corruption and legal vices in the previous law. The constitution always takes precedence over all other legal aspects.
(6) So whenever I see these nonsense postings I question myself who is paying these guys to discredit Venezuela Government, President Chavez, Crystallex management INSTEAD OF GOING AFTER THE CROOKS that for years have been unable to get a mine into operation!
(7) Bane needs to post his view on Vannessa fraud and the Venezuela subsidiary.
(8) Probably Crystallex management and the Venezuela government would not tell you this story as it is legal issue already in court and they are part of or interested party.

IN THE MEAN TIME ENJOY THIS ACCUMULATION PERIOD

Cheers]]> Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94334 94334 Wed, 22 Aug 2007 15:09:54 -0400
You said that Tradewinds purchased 15 million Crystallex shares on the cheap the past week. That is an unduly erroneous comment. If you have access to EDGAR, you should use it. The 13F was filed for the quarter ended June 29th. Any purchases were therefore done at least two months ago. Tradewinds also did not purchase the shares you claim. The 13F was also filed on behalf of Nuveen Inv., Inc. which has held a majority of those shares for quite a long time. You are doing can more or less be called a double reporting due to the affiliation of the companies involved.

Tradewinds Global Investors, LLC, Nuveen Asset Management, NWQ Investment Management Company, Rittenhouse Asset Management, Inc., Santa Barbara Asset Management, LLC, and Symphony Asset Management LLC. All are registered investment advisors and subsidiaries of Nuveen Investments,

If this is too complicated for you, buy a book or take a course.

You published a rebuttal to an article I wrote in April. The share price at that time was in excess of 30 percent higher than today. By your very own measures the stock is failing. Do I need to say anything more ?

In that same article I addressed how Crystallex likes to blame inaccurate reports from the media for its woes. It is ironic then that they are now using what can only loosely be termed as media to promote their stock without concern for accuracy.

You are still a very confused investor.

Regards,

JLB]]> Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94325 94325 Wed, 22 Aug 2007 14:09:08 -0400
J.L Bane- Get a life.

Just this year:

Crystallex Flounders as Circumstances Worsen
on Aug 22nd, 2007 with stocks: KRY
Crystallex’s Las Cristinas Contract in Doubt
on Jun 7th, 2007 with stocks: KRY
Crystallex’s Speculative Shine Begins to Tarnish
on May 30th, 2007 with stocks: KRY
Crystallex: Promotion, Politics and Permits
on May 7th, 2007 with stocks: KRY
Crystallex Continues to Confuse Investors
on Apr 3rd, 2007 with stocks: KRY]]> Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94321 94321 Wed, 22 Aug 2007 13:53:30 -0400 Crystallex Flounders as Circumstances Worsen http://seekingalpha.com/article/45260/comments?source=feed#comment-94284 94284 Wed, 22 Aug 2007 09:30:51 -0400 That still hasn't stopped companies like Tradewinds from scooping up 15 million shares on the cheap the past week, as well as a large chunk of GRZ shares.
Since you get a kick out of beating up down companies, why don't you go write something on Birch Mountain. You'll be absolutely giddy once you see their finances, Bane.
I am sure Seekingalpha only allows this to go on due to the fact that these types of articles only incite others to respond (see this post).

By the way, "Bullocks"? Who else besides the British use the word "Bullocks"? Nothing against the British, but I do find it interesting.]]> Crystallex’s Las Cristinas Contract in Doubt http://seekingalpha.com/article/37636/comments?source=feed#comment-88660 88660 Thu, 14 Jun 2007 21:01:39 -0400 Crystallex’s Las Cristinas Contract in Doubt http://seekingalpha.com/article/37636/comments?source=feed#comment-88538 88538 Thu, 14 Jun 2007 08:29:07 -0400
Let this be a reminder to how foolish your article is, and a flag post warning other reader of your motives. Thanks for the entertainment in your bash articles.

tinyurl.com/2rfert
Crystallex Updates Shareholders Regarding Permitting for the Las Cristinas Gold Project

6/14/2007
Download this Press Release

TORONTO, ONTARIO -- (MARKETWIRE) -- 06/14/07 -- Crystallex International Corporation (TSX: KRY)(AMEX: KRY) reported today it has received notice from the Corporacion Venezolana de Guayana ("CVG"), that the requirements of the Ministry of the Environment and Natural Resources of Venezuela ("MinAmb" formerly referred to as "MARN") for the issuance of the Environmental permit to commence construction of the Las Cristinas Project have been fulfilled.

MinAmb, based on its approval of the Environmental Impact Study ("EIS") for the Las Cristinas gold project, requested the CVG to post a Compliance Guarantee Bond and pay certain taxes for the issuance of the Environmental permit. Crystallex has posted the bond and paid the taxes.

The CVG confirmed that the approval of the EIS, the posting of the bond and the payment of the taxes represent the final and conclusive step in the procedure for the issuance of the Environmental permit to construct the Las Cristinas Project. Crystallex as the builder and operator of Las Cristinas will have use of this permit in order to construct the project on the basis of the approved feasibility study.

In the formal notice that MinAmb sent to the CVG, it was stated that the Environmental permit will be issued following the payment of taxes and posting of the bond. The CVG now awaits the permit required for the construction of the mine from MinAmb.

Mr. Gordon Thompson, Crystallex President and CEO commented, "The request by the Venezuelan Government for the posting of the Compliance Guarantee Bond and taxes further confirms our understanding that we've complied with the very final stage of the procedure for receipt of the environmental permit."

About Crystallex

Crystallex International Corporation is a Canadian based gold producer with significant operations and exploration properties in Venezuela. The Company's principal asset is the Las Cristinas property in Bolivar State that is currently under development and which is expected to commence gold production in 2009 at an initial annualized rate of some 300,000 ounces at the initial planned production rate of 20,000 tonnes of ore per day. Other key assets include the Tomi Mine, certain Lo Increible properties and the Revemin Mill. Crystallex shares trade on the TSX (symbol: KRY) and AMEX (symbol: KRY) Exchanges.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including: statements relating to the estimated reserves and resources at Las Cristinas; anticipated results of drilling programs, feasibility studies or other analyses; the potential to increase reserves and expand production, at Las Cristinas; Crystallex's projected construction and production schedule, and cost and production estimates, for Las Cristinas; and management's statements regarding its expectations regarding mining in Venezuela. Forward-looking statements are based on estimates and assumptions made by Crystallex in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Crystallex believes are appropriate in the circumstances. Many factors could cause Crystallex's actual results, performance or achievements to differ materially from those expressed or implied by the forward looking statements, including: gold price volatility; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated production, between actual and estimated reserves, and between actual and estimated metallurgical recoveries; mining operational risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; speculative nature of gold exploration; dilution; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property. These factors and others that could affect Crystallex's forward-looking statements are discussed in greater detail in the section entitled "Risk Factors" in Crystallex's Annual Information Form (which is included in the Annual Report on Form 40-F that Crystallex files with the United States Securities and Exchange Commission (the "SEC") and elsewhere in documents filed from time to time with the Canadian provincial securities regulators, the SEC and other regulatory authorities. These factors should be considered carefully, and persons reviewing this press release should not place undue reliance on forward-looking statements. Crystallex has no intention and undertakes no obligation to update or revise any forward-looking statements in this press release, except as required by law.

Contacts:
Investor Relations Contact:
Crystallex International Corporation
Richard Marshall, VP
1-800-738-1577
Email: info@crystallex.com
Website: crystallex.com]]> Crystallex’s Las Cristinas Contract in Doubt http://seekingalpha.com/article/37636/comments?source=feed#comment-88469 88469 Wed, 13 Jun 2007 14:44:44 -0400 Crystallex’s Las Cristinas Contract in Doubt http://seekingalpha.com/article/37636/comments?source=feed#comment-88287 88287 focus on the substantive points, and avoid personal criticism of authors or other participants. Why? Because we want Seeking Alpha to be useful, not to descend into unhelpful mud-slinging like some well-known message boards. - Even if you question the motivation of another contributor, you should still address the points made on their own merits. Attacking authors is a lame substitute for addressing substantive issues. - Seeking Alpha's editors will delete or edit comments that contain personal attacks of any kind. - It's a last resort, but we reserve the right to revoke the comment privileges of anyone who engages in personal attacks instead of discussing the substantive points of an article or issue.]]> Tue, 12 Jun 2007 01:09:29 -0400
- Seeking Alpha is a forum to discuss stock ideas, not to attack other commenters or authors. Please focus on the substantive points, and avoid personal criticism of authors or other participants. Why? Because we want Seeking Alpha to be useful, not to descend into unhelpful mud-slinging like some well-known message boards.

- Even if you question the motivation of another contributor, you should still address the points made on their own merits. Attacking authors is a lame substitute for addressing substantive issues.

- Seeking Alpha's editors will delete or edit comments that contain personal attacks of any kind.

- It's a last resort, but we reserve the right to revoke the comment privileges of anyone who engages in personal attacks instead of discussing the substantive points of an article or issue.]]> Crystallex’s Las Cristinas Contract in Doubt http://seekingalpha.com/article/37636/comments?source=feed#comment-88281 88281 Mon, 11 Jun 2007 22:11:16 -0400
Thank you also for providing your credentials but I don't see your need for listing them other an attempt at gaining come level of credibility for your argument. What does you in though is your focus on Crystallex's pending environmental permit application as an evaluation of the article. If you decide to reread the article, you will see that it is not the focus of the article and is not even mentioned. I hope you do not display this type of attention deficit at your place of work.

Moreover the article was about mining legislation in Venezuela and comments made by President Chavez, a topic you did not even touch on.

In this regard, your whole critique lacks any connection to the article. Your discussions with individuals at SNC Lavalin and Crystallex's CEO fare the same fate.

As you deem yourself an expert at understanding the permitting and development process, you might consider replying to the following questions in order to assist your friend and other readers.

A) If the permitting process is a lengthy one, how is it Crystallex was able to tell investors that they expected to receive it mere months after handing over the EISA ? How has it been possible that Crystallex has been telling investors that it expected to receive the permit any day, sooner rather than later or at any moment for several years but then the CEO Gordon Thompson said Crystallex had only recently submitted the final documentation to the MinAmb ?

B) I will give you one thing. When pointing out a mistake I have alread admitted to and apologized for, you said that the problem with evaluating a 2-year old documentation is that it could have impacted a decision to buy a stock, in your case, Phelps Dodge. I would like to turn your attention to another 2 years old document. Crystallex's feasibility study.

With your education and knowledge of the industry, how much do you think the costs listed in the study will increase accounting for inflation, penalty fees, contract renegotiations and all ?

Knowing even an estimate of the current numbers may well impact a decision to buy a stock.

Regards,

JLB]]> Crystallex’s Las Cristinas Contract in Doubt http://seekingalpha.com/article/37636/comments?source=feed#comment-88121 88121 Fri, 08 Jun 2007 15:46:05 -0400 I have no direct stake in KRY outside of being involved with SNC Lavalin on several projects around the world (ex. Las Cruces Project). My friend has invested heavily in this Stock and he wanted me to evaluate your comments on this matter.

I would like to provide my take on this issue. But first, I should give you my background in the mining arena.

I am a Project Manager on all projects related to mining from my company. I have been involved from the ground-up of Mining Operations with Phelps Dodge, BHP, CODELCO, CRVD, Grupo, Penoles, Frontera, Placer Dome, Constellation Copper, etc. As a recent example, I have been involved in a project with Phelps Dodge called Safford Mine and Leach. This project recently got approved regarding environment issues. The process has taken over 10 years to get the final OK and they will start production in 2008. So, my background lends itself to understanding the approval and development process for a mining project. If requested, I have no problems in providing more detail of my expierences on any mining project.

Based on my perception and discussion with the KRY President and the SNC Lavalin Project Manager for this project (Toronto, Canada), the process of approval is heading towards an environmental approval to build and operate a plant to mine gold. Also, the CEO of KRY is in Venezuela to finalize the environmental approval. From all indications, this will occur in the next couple of weeks. If you currently hold this stock, I would stay with your position. But, if you don't own this stock, I would evaluate all issues before purchasing this stock at this time. Remember for any mine, the environmental approval is the most critical document for most locations involving mining operations.

As for Mr. Banes, he has made comments referring to outdated documentation. For example, the problem with evaluating 2-year old documentation on the Safford Project could have impacted your decission to buy Phelps Dodge Stock. Therefore, Mr. Banes credibility should be tarnish. No matter if he made a mistake or he had an alternative motive, the investor for KRY should not use his information for purchasing this stock. I am interested in his experience in mining operations.

Mr. Banes, I welcome your answer and response on this subject.]]> Crystallex’s Las Cristinas Contract in Doubt http://seekingalpha.com/article/37636/comments?source=feed#comment-88074 88074 Fri, 08 Jun 2007 09:51:37 -0400 Crystallex’s Las Cristinas Contract in Doubt http://seekingalpha.com/article/37636/comments?source=feed#comment-88045 88045 Thu, 07 Jun 2007 23:22:35 -0400 I have stated before here and will state again, that the mining industry is not the oil industry. Just look at production and profit margins. I, at this point give VZ gvt officials the forsight to see this difference. That does not mean that officials quoted or referenced by Bane have that same forsight. There are true Communists in Chavez's ministry. But we all know, and I hope Chavez knows as well, that true Communism is not economical, or beneficial for the country.]]> Crystallex’s Las Cristinas Contract in Doubt http://seekingalpha.com/article/37636/comments?source=feed#comment-88043 88043 Thu, 07 Jun 2007 20:48:23 -0400 Crystallex’s Las Cristinas Contract in Doubt http://seekingalpha.com/article/37636/comments?source=feed#comment-88022 88022 Thu, 07 Jun 2007 17:14:52 -0400