Gold Reserve updates Brisas NI 43-101 Report

About this update from Gold Reserve Ltd.

[{"type":"text","content":"\n\n\n\nSPOKANE, WA, March 25 /CNW/ - Gold Reserve Inc. (TSX: GRZ - AMEX:GRZ)\nannounced the completion of a CSA National Instrument 43-101 Report prepared\nby Pincock, Allen and Holt updating the Brisas gold copper resource and\nreserve estimates, capital and operating costs, and current project economics.\nThe Company and SNC-Lavalin Inc. (SNC), the project's EPCM contractor, updated\nthe capital costs for the NI 43-101 Report.\n\n\nThe Report utilizes $600 per ounce gold and $2.25 per pound copper for\nthe base-case economic model, resulting in cash operating costs (net of copper\nbyproduct credits) of $120 per ounce of gold. Total costs including cash\noperating costs, exploitation taxes, initial capital costs (excluding sunk\ncost), and sustaining capital costs are estimated at $268 per ounce of gold.\nInitial capital costs are currently estimated to be $731 million excluding\nworking capital, critical spares and initial fills of approximately\n$53 million. All amounts are in U.S. dollars.\n\n\nDoug Belanger, President of Gold Reserve stated, "We are very pleased\nwith the results of this Report. Most notable is that estimated capital costs\nhave only increased 14% from $638 million to $731 million. Considering that\n25% of the increase in capital costs is due to project scope changes such as\nincreasing the SAG mill size from 36 feet to 38 feet, the capital cost\nincrease at Brisas is not as dramatic as the increases that the industry has\nrecently been experiencing. This is a result of SNC's detailed engineering\nbeing 75% complete and the majority of the project's external infrastructure\nalready in place. In addition, orders for long lead items have been placed for\nthe gyratory crusher, pebble crushers, SAG and ball mills, mill motors, and\ninitial construction equipment. As a result, the Brisas Project continues to\ndemonstrate low projected operating costs, robust economics at conservative\nmetal prices, excellent leverage and significant value at current metal\nprices. At gold prices of $900 per ounce and copper prices of $3.50 per pound,\ncash operating costs would be negative ($49) per ounce and total costs would\nbe $117 per ounce (excluding sunk cost)."\n\n\nThe current operating plan assumes an open pit mine containing proven and\nprobable reserves of approximately 10.2 million ounces of gold and 1.4 ...

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