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Gold Reserve finalizes Caterpillar equipment purchase agreement
Gold Reserve finalizes Caterpillar equipment purchase agreement.
About this update from Gold Reserve Ltd.
[{"type":"text","content":"\n\n\n\nSPOKANE, WA, June 20 /CNW/ - Gold Reserve Inc. (TSX:GRZ - AMEX:GRZ) Gold\nReserve Inc. is pleased to announce that it has finalized negotiations with\nCaterpillar Inc. and its local Venezuelan dealer, Venequip S.A., to provide\nCaterpillar haulage equipment, front end loaders and construction machinery\nfor the construction and operation of Gold Reserve's Brisas gold and copper\nmine in Venezuela.\n\n\nJim Geyer, Senior Vice President of Gold Reserve, said, "We have\nestablished an excellent relationship with Caterpillar and Venequip and we are\nvery happy that Caterpillar views our Brisas mine as strategically important\nwithin Venezuela and has agreed to support our mining plans with a steady\nsupply of high-quality equipment, spare parts, and technical expertise.\nVenequip is a first class Caterpillar dealer and will provide excellent\nin-country support to our construction and future operations fleet."\n\n\nGold Reserve has initiated this alliance with Venequip by ordering 21\npieces of construction equipment, with a value of more than $10 million, to be\ndelivered before the end of 2007. The equipment is planned to be used for\nearly earthworks projects and to initiate construction of the tailings dam\nfacility.\n\n\nSubsequent equipment deliveries, during the next three years, are\nexpected to include more than thirty 236 tonne capacity haulage trucks, two 18\ncubic meter front end loaders, seven D10T bulldozers, and other support\nequipment. In total, the agreement with Venequip and Caterpillar represents an\ninitial 3 year capital investment of approximately $80 million and nearly\n$500 million in capital and spare parts purchases over the estimated life of\nmine operation.\n\n\nGold Reserve Inc. is a Canadian company developing the Brisas gold copper\nproject in Southeastern Venezuela. Brisas has NI-43-101 reserves of\n485 million tonnes of ore grading 0.67 grams per tonne gold and 0.13% copper\ncontaining 10.4 million ounces of gold and 1.3 billion pounds of copper (using\na revenue cutoff grade of US $3.04 per tonne and a gold price of US $400 and a\ncopper price of US $1.15 per pound). The Company expects to finance the\nconstruction of Brisas with a combination of debt and equity. The mine plan\nanticipates using conventional truck and shovel mining methods with the\nprocessing of ore at full produ...