Crystallex owns 100% of the Tomi concession, which is located approximately 16 km northeast of the town of El Callao in the El Callao District, Bolivar State, Venezuela. El Callao is a three-hour drive south from Puerto Ordaz, the largest city in Bolivar State. The Tomi property is accessible via an all-weather, northbound dirt road that exits from Highway 10 about 10 km from El Callao. Ore from Tomi is trucked approximately 21 km to the Revemin mill for processing. All necessary infrastructure exists at the Tomi concession since the open-pit mines have been in operation since August 2000.  There are four adjoining deposits on the concession, namely Charlie Richards, Mackenzie, Milagrito and Fosforito. Mining commenced in 1998 at the Mackenzie open pit, and subsequent to Crystallex’s purchase of the concession in August 2000, mining has also been conducted in the Charlie Richards and Milagrito open pits. In 2001, Crystallex completed a diamond drill program and Feasibility Study (completed by Mine Development Associates) which supported the development of an underground mine below the Charlie Richards pit.

Over the course of 2002 and the first half of 2003, a small, high grade underground mine was developed and gold production commenced in the second half of 2003.  In 2007, the Tomi operations consisted of two active open-pit mines (McKenzie and Fosforito) and one underground mine (Charlie Richards).

Production from the Tomi deposits was 21,988 ounces in 2007, a 47% decrease from 41,638 ounces produced in 2006. Lower production in 2007 primarily reflects the near depletion of the Mackenzie and Fosforito open pit deposits (as evidenced by higher strip ratios and lower ore grades), coupled with fewer tonnes mined from underground due to poor drill availability. The strip ratio (the ratio of waste mined to ore mined) at the Tomi open pits increased to 16.0:1 in 2007, up from 10.0:1 in 2006 and 6.3:1 in 2005. The higher strip ratios are due to mining from deeper pits and the timing of the push back of the pits, which resulted in removing most of the waste in 2007 to uncover ore to be mined in 2008. Only 96,000 tonnes of ore were mined from the Tomi open pits in 2007, as compared with 228,000 in 2006, (however this was partially offset by increasing the mining rate at the La Victoria deposit – see La Victoria Project).

The Fosforito open pit was depleted in early 2008 and it is forecast that the Mackenzie deposit will be depleted by mid 2008. A drill program aimed at determining the feasibility of expanding the Fosforito pit was completed in the first quarter of 2008. A resource model is expected to be available during the second quarter and an assessment of the expansion economics will be undertaken.

Crystallex continues to develop a regional exploration program targeting Tomi and adjoining concessions in an effort to extend the life of the El Callao operations beyond 2008. A total of 10,442 m of diamond and reverse circulation drilling was completed in 86 bore holes in the exploration of 3 target areas in the Tomi property in 2007.

An additional 3,211 m of underground diamond drilling was completed in exploration of the down-plunge extension of mineralization in the Tomi Underground Mine in 2007. Ramp development was stopped while the underground exploration drill program was underway. Production from the current level is expected to continue until early in the second quarter of 2008. Upon completion of the drilling, an updated resource estimate will be produced and the feasibility of deepening the mine will be assessed. The Corporation has not determined at this stage if it is economically viable to continue operating the Revemin mill with ore coming only from the underground mine. The underground mine can produce approximately 200 tonnes of ore per day, while the mill capacity is 1,000 to 1,200 tonnes per day. Accordingly, as noted above, an exploration campaign is underway aimed at finding new sources of open pit ore.

• In 2007, a 32-hole diamond drilling program totalling 4,443 m was completed at Fosforito, La Fortuna and Milagrito East. A 54-hole reverse circulation drilling program totalling 5,999 m was also undertaken at Fosforito. The Tomi Underground Mine had an additional 26 diamond drill holes totalling 3,211 m completed in 2007; and
• Two programs of geophysics (microgravity) were completed in western and south-eastern Tomi in 2007.

Tomi Operating Highlights