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Gold Reserve reports on Venezuelan Government's failure to follow its own laws - Part 2
SPOKANE, WA, May 27 /CNW/ - Gold Reserve Inc. (TSX:GRZ - NYSE-Amex:GRZ) commented today on an Off...
About this update from Gold Reserve Ltd.
[{"type":"text","content":"\n\n\n\nSPOKANE, WA, May 27 /CNW/ - Gold Reserve Inc. (TSX:GRZ - NYSE-Amex:GRZ)\ncommented today on an Official Gazette issued by the Government of Venezuela\ndated May 26, 2009 in which the Venezuelan Ministry of Mines (MIBAM) denied\nthe extension of the Brisas del Cuyuni alluvial gold concession which contains\napproximately 3% of the proven and probable gold reserves of the Brisas\nProject.\n\n\nDuring October 2007, the Company applied for the extension of the Brisas\ndel Cuyuni alluvial gold concession pursuant to Article 25 of the Venezuelan\nmining law, which provided MIBAM a six-month period ending in April 2008, to\ndeny the extension request. Similar to the El Pauji concession extension\napplication discussed in our related news release yesterday, MIBAM did not\nrespond to our request for an extension during the requisite time period.\nAccording to Article 25 of the mining law, the extension is automatically\ngranted.\n\n\nAgain, as was the case with the El Pauji concession extension\napplication, MIBAM has attempted to ignore its own regulations and laws. In\nSeptember 2008, subsequent to the lapsing of the six month time period, the\nCompany received from MIBAM a certificate of compliance (or good standing) of\nthe Company's obligations set forth in the mining law and in the title for the\nBrisas del Cuyuni alluvial gold concession. MIBAM states in the Official\nGazette that the Company timely filed an application for extension and\nacknowledged that MIBAM made its evaluation on the status of the concession\nsubsequent to the six month time period promulgated in Article 25 of the\nmining law. Now, more than one year after the six month time period elapsed,\nMIBAM in internal reports asserts without evidence or prior notice that the\nCompany is not in compliance with its obligations in regards to the\nconcession.\n\n\nThis action has the effect of terminating the concession and could allow\nMIBAM to take physical control of the concession. The Company currently holds\nin good standing the hardrock or (veta) gold and copper concession that\noccupies the area below the Brisas alluvial gold concession. The hardrock\nconcession contains proven and probable gold and copper reserves of\napproximately 10 million ounces and 1.4 billion pounds, respectively. The\nimpact of this implied seizure on our rights to the hardrock (ve...