VANCOUVER, BC - CRYSTALLEX INTERNATIONAL CORPORATION (symbol KRY on TSX and Amex) today announced a joint venture with Uruguay Mineral Exploration Inc. (symbol UME on the TSX Venture Exchange), which will provide Crystallex with access, through its wholly owned subsidiary Minera San Gregorio S.A., to UME's Sobre Saliente mineral property in the vicinity of the Company's San Gregorio operation in Uruguay.

 

Under the arrangement, Crystallex has committed to do an initial drill program on the UME property to determine the quantity and quality of the resource.  Once this has been established, and following additional drilling, Crystallex will have the option to commence a mining operation and the ore will be processed at the San Gregorio mill. Crystallex will recover from cash flow its operating costs and receive a 5% fee on charges incurred "in-house" including milling and processing charges incurred at the San Gregorio mill. If less than 200,000 ounces of profitable gold are confirmed, Crystallex will receive 70 percent of any net cash flow from the operation.  If more than 200,000 ounces of gold are confirmed, the cash flow distribution will be split evenly between Crystallex and UME.

 

Crystallex President and Chief Executive Officer, Marc J. Oppenheimer said that both companies could benefit from this arrangement.  "We are very familiar with the area and recognize the potential of the UME property.  With our drilling resources and experienced staff nearby, we can commence the program without much delay. If the results are favorable, UME will not have to construct a mill and we will have another source of material for our San Gregorio mill.  Both companies could enjoy enhanced cash flows from that operation," Mr. Oppenheimer said.

 

Chris Clark, President and Chief Executive of Uruguay Mineral Exploration said, "we are pleased that we have reached agreement with Crystallex on how to best use these resources. Depending on the outcome of the drilling program, UME will be obtaining the benefits of going into production by using Crystallex's existing plant."

 

UME controls a number of nearby properties, which extend over an area of 30,000 hectares, are within moderate trucking distance to the San Gregorio mill operation.  Preliminary exploration by UME over the past four years has indicated potential for gold and base metals.

 

About Crystallex
Crystallex International Corporation is an emerging intermediate gold mining company. The Company owns or controls a number of strategic properties in South America. Crystallex's strategy for growth is to develop its 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.

 

About Uruguay Mineral Exploration Inc.
Uruguay Mineral Exploration Inc. has been exploring in Uruguay for a number of years and has developed an extensive portfolio of mineral exploration projects, many of which are at an advanced stage.  The Corporation has identified a resource of approximately 200,000 oz at Sobre Saliente which is one of a number of promising gold targets in the Minas de Corales area.  Following the successful negotiation of this arrangement with Crystallex, exploration of other promising gold targets in the vicinity of the San Gregorio Mill will be advanced.

 

On Behalf of the Crystallex Board:

 

 

For Further Information:
Crystallex contact:  A Richard Marshall, VP at  (201) 541-6650 or Andrea Boltz at (604) 683-0672
To receive previous Company releases:  (800) 758-5804  ext.114620
Visit us on the Internet:  http://www.crystallex.com

UME contact Tony Shearer (Chairman) on +44 207 460 8935, or Chris Clark, President, at +5982 601 6354 (phone) or +5982 600 6232 (fax).

 

Note: This news release may contain certain "forward-looking statements" within the meaning of the United States Securities Exchange Act of 1934, as amended.  All statements, other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Crystallex, are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.  Important factors that could cause actual results to differ materially from the Company's expectations are disclosed under the heading "Risk Factors" and elsewhere in documents filed from time to time with The Toronto Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities.

 

The Toronto Stock Exchange has not reviewed this release and does not accept responsibility for the adequacy or accuracy of this news release.