VANCOUVER - CRYSTALLEX INTERNATIONAL CORPORATION (AMEX: KRY; Toronto) today announced agreements with Gandarela Corporation and Mineracao Gamelas that provide Crystallex with gold exploration rights covering a vast 790,000 hectare (1,952,090 acres) expanse of the Brazilian State of Amapa, as well as options to acquire individual properties following the exploration phase. The agreements represent a significant expansion of Crystallex's activities in Brazil, where the Company is already conducting a diamond drill program at its 65% owned Mineiro property in the Amapa State.
The Company believes the areas covered under the new options have the potential to host several types of gold deposits, including sheared BIF and greenstone sequences, stockworks, high grade quartz veins, modified paleoplacers and laterite-saprolite enrichments. Crystallex has commenced Landsat surveying of the territory. Following the satellite imaging, the Company intends to initiate surface review and sampling at select sites in the region.
"Crystallex is committed to expanding its exploration and production activities at promising sites around the globe," said Marc J. Oppenheimer, President and CEO of Crystallex. "The new Amapa exploration project is a natural complement to our ongoing work in Brazil at the Mineiro property. While these arrangements are in keeping with the Latin American focus of our current project portfolio, including gold production at the Albino concession in Venezuela, the Company continues to investigate opportunities literally around the globe."
Under the terms of the agreements announced today, Crystallex has a six month exclusive option to screen a portfolio of "Pedidos de Pesquisa" (Applications for concessions) and conduct exploration in the covered territory. At the end of that period, Crystallex has the right to acquire one or more properties for set terms and conditions, which includes an initial payment of US$100,000, a payment of US$500,000 upon completion of a positive feasibility study, and the payment of a production royalty of 2%.
Crystallex is also currently involved in litigation before Venezuela's Supreme Court of Justice to remove obstacles to the enforcement of its ownership rights to the gold concessions for Las Cristinas 4 & 6. As previously announced, Crystallex's action in this matter is currently under consideration by the Political Administrative Chamber of the Court.
Crystallex International Corporation is a gold mining and exploration company. The Company's strategy for growth is to develop a portfolio of properties in South America as well as to diversify geographically by investing in producing or near-production projects and by exploring properties of merit in other areas of the world.
On Behalf of the Board,
"Marc J, Oppenheimer"
Marc J, Oppenheimer, President & CEO
NOTE: The Toronto Stock Exchange and the Vancouver Stock Exchange have not reviewed and do not accept responsibility for the adequacy or accuracy of this news release.
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