SPOKANE, WA, May 20 /CNW/ - Gold Reserve Inc. (TSX: GRZ - AMEX:GRZ)
announced today it has selected SNC-Lavalin Engineers & Constructors, Inc.
("SLE&C") of Toronto and its affiliate, SNC-Lavalin International, Inc., to
undertake the Engineering, Procurement, and Construction Management ("EPCM")
for its 100% owned Brisas gold-copper project in southeastern Venezuela. Gold
Reserve expects that a definitive EPCM contract will be finalized shortly.
SLE&C and its affiliates are members of the SNC-Lavalin Group of Companies
("SNC-Lavalin" TSX:SNC) based in Canada.
SNC-Lavalin has significant experience in Latin America and has offices
in Caracas and Puerto Ordaz. SNC-Lavalin is well known for its successful gold
and copper project experience having been involved in the detailed engineering
and construction of major gold and copper projects in Peru, Chile, Tanzania
and elsewhere around the world.
Doug Belanger, President, stated, "We are very pleased to select
SNC-Lavalin for the EPCM phase of the Brisas project. SNC-Lavalin has been
involved in over 30 engagements in Venezuela and we look forward to working
closely with them on the Brisas project. The first phase will entail the
detailed engineering design for the project. Procurement and construction
could begin thereafter following receipt of final environmental permits and
the Company obtaining appropriate financing, both of which we are currently
pursuing. The selection of SNC-Lavalin is another major milestone for
Gold Reserve and our Brisas project and takes us one step closer to unlocking
the value of Brisas by advancing the project towards production."
The Brisas operating plan from the January 2005 bankable feasibility
study anticipates processing ore at 70,000 tonnes per day, yielding an average
annual production of 486,000 ounces of gold and 63 million pounds of copper.
Cash operating costs (net of copper by-product at US $1.00 per pound) are
estimated at $154 per ounce of gold and total costs per ounce, including
operating costs and initial and sustaining capital, are estimated at $263 per
ounce of gold. The Brisas project has 10.1 million ounces of gold and
1.29 billion pounds of copper in proven and probable ore reserves.
Gold Reserve Inc. is a Canadian company, currently developing its Brisas
gold/copper project in southeastern Venezuela.
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.
