SPOKANE, WA, May 13 /CNW/ - Gold Reserve Inc. (TSX: GRZ - AMEX:GRZ) is
very pleased to announce a 1.4 million gold ounce and 229 million copper pound
increase in the measured and indicated resource at its Brisas project located
in Southeastern Venezuela. The measured and indicated gold and copper
resources are approximately 12.4 million ounces and 1.6 billion pounds,
respectively. The inferred resource at Brisas is an additional 2.46 million
ounces of gold and 346 million pounds of copper. The increase in measured and
indicated gold and copper resource is in addition to the resource disclosed in
the Brisas bankable feasibility study released in January 2005.
The resource estimate incorporates the Company's recent drill program of
15,000 meters and a 0.4 grams per tonne gold equivalent (AuEq) cutoff grade
using $350 per ounce gold and $0.90 per pound copper. Pincock Allen & Holt of
Denver, Colorado is currently completing the proven and probable reserve
estimate which is expected to be finalized next week.
Pincock Allen & Holt has completed the resource estimate utilizing
various cutoff grades summarized in the following table:
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Brisas Measured and Indicated Resource
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Category AuEq K tonnes Gold Copper
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Cutoff Gpt k ozs % m lbs
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0.3 285,819 0.636 5,841 0.115 721
0.4 250,184 0.689 5,541 0.119 656
Measured 0.5 206,653 0.758 5,039 0.127 577
0.6 156,226 0.861 4,327 0.133 456
0.7 120,940 0.953 3,704 0.139 370
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0.3 402,949 0.567 7,351 0.129 1,140
0.4 332,314 0.640 6,837 0.132 966
Indicated 0.5 265,562 0.719 6,139 0.137 802
0.6 193,409 0.834 5,186 0.137 585
0.7 147,338 0.928 4,398 0.140 454
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0.3 688,768 0.596 13,192 0.123 1,861
Measured 0.4 582,498 0.661 12,378 0.126 1,622
+ 0.5 472,215 0.736 11,178 0.133 1,379
Indicated 0.6 349,635 0.846 9,513 0.135 1,041
0.7 268,278 0.939 8,102 0.140 824
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Brisas Inferred Resource
The Brisas inferred resource estimate at various gold equivalent (AuEq)
cutoff grades is summarized in the following table:
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Category AuEq k tonnes Gold Copper
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Cutoff Gpt K ozs % M lbs
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0.3 178,650 0.490 2,813 0.120 472
0.4 129,040 0.594 2,464 0.122 346
Inferred 0.5 95,492 0.690 2,118 0.124 261
0.6 63,916 0.835 1,715 0.113 159
0.7 47,607 0.933 1,428 0.113 118
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The geologic resource has been estimated in accordance with the SME
Reporting Guide and CIMM Standards as adopted by CSA National Instrument
43 - 101. The gold equivalent (AuEq) cutoff is based on $350 per gold ounce,
$0.90 per pound copper, anticipated metal recoveries and smelter costs. The
qualified persons involved in the resource estimate were Raul Borrastero,
C.P.G. and Susan Poos P.E. of Pincock Allen & Holt and Brad Yonaka and Daniel
Thompson of Gold Reserve.
The Brisas operating plan from the bankable feasibility study anticipates
utilizing conventional truck and shovel mining methods with the processing of
ore at full production of 70,000 tonnes per day, yielding an average annual
production of 486,000 ounces of gold and 63 million pounds of copper. Initial
capital cost and the cash operating cost are estimated to be $552 million and
$154 per ounce of gold (net of copper by product at $1.00 per pound),
respectively.
Information regarding Gold Reserve Inc. is located at
www.goldreserveinc.com
Certain statements included herein, including those that express
management's expectations or estimates of our future performance, constitute
"forward looking statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995. Forward looking statements are
necessarily based upon a number of estimates and assumptions that, while
considered reasonable by management are inherently subject to significant
business, economic and competitive uncertainties and contingencies. We caution
that such forward-looking statements involve known and unknown risks,
uncertainties and other risk factors that may cause the actual financial
results, performance, or achievements of Gold Reserve to be materially
different from our estimated future results, performance, or achievements
expressed or implied by those forward looking statements. These are discussed
in greater detail in Gold Reserve's filings with the U.S. Securities and
Exchange Commission at www.sec.gov and the Annual Information Form and other
reports filed with Canadian provincial securities commissions at
www.sedar.com. Gold Reserve expressly disclaims any intention or obligation to
update or revise any forward looking statement whether as a result of new
information, events or otherwise.
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