Article: Arawak chief's advice to the cowboys is to pow-wow ... or forget about Venezuelan gold!

Gilberto sees the future as being intrinsically tied to set-ups such as that recently achieved by the Russian Agapov's mining interest Rusoro Mining in a 50/50 deal with Venezuela to take over Hecla's abandoned workings at La Camorra, adding to a string of other mining operations owned or contracted to the Russiasn in southeastern Bolivar State. He says that the Russians have a greater empathy to the government of President Hugo Chavez Frias and, unlike their counterparts in USA and Canadian mining they (the Russians) know how to blend in with the Venezuelan government's aspirations.

I point out that Rusoro is in fact a Canadian company based in Vancouver and listed on the Vancouver stock exchange, but Berrio says it doesn't matter ... "it's the Russian philosophy that matters most!"

So what of the Russian's offer to buy out Gold Reserve's interests in Las Brisas -- the news was released just as we toured the southeastern goldfields, including an overfly of Las Brisas and nearby Las Cristinas, contracted via the Venezuelan Guayana Corporation (CVG) to Crystallex International Corporation of Toronto in Canada.

Gilberto Berrio and Arawak chief Daniel Gomez are of one accord on the subject and say they want to see Las Brisas del Cuyuni in Russian hands as quickly as possible so that. after years of idle anticipation, the local work force can get to grips the social/welfare problems that have mounted and mounted as a result of the enforced idleness.

But why not simply issue the environmental permits and be done with it? Surely Gold Reserve and Crystallex are better equipped to mine gold at Kilometer 88 than any "ïnterloper" as some sectors of the North American investor community persist in calling Rusoro?

Quite simply because the government is resolved NOT to give the final clearances to either company -- for a variety of reasons, but principally because they think the Russians can do a better job of it and have shown the various ministers they will do business without any of the perceived problems (political and otherwise) that both Gold Reserve and Crystallex are seen as bringing with them.

As far as the announced takeover bid by Rusoro for Gold Reserve and a potential bid for Crystallex that may, or may not, be in the offing, Rusoro executives are claiming to the media that their involvement means the Venezuelan government will work more closely with them on a 50/50 schedule than either of the two others can possibly achieve.

"In that way, it is only a plus plus for Gold Reserve investors to accept the Rusoro bod and, if/when a similar bid comes for Crystallex International at Las Cristinas, the recommendation from the indians to the cowboys is to pow-wow ... or forget it!

Roy S. Carson
vheadline@gmail.com

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