Friday, 30th March 2007 (2635 views)

The president of the Gold Reserve group has described its securing of a deal at Venezuela's biggest gold mine as a "major milestone".

Doug Belanger said that construction would begin immediately on the $640 million (£326.9 million) project, for which the deposit was approved in 1992.

The Canadian mining group's copper and gold project is expected to have a lifespan of between 20 and 25 years.

Gold Reserve shares closed at $7.66 on the Toronto Stock Exchange as a result of the news, gaining nearly 50 per cent in the process.

Crystallex, another Canadian mining company, also saw its shares increase by 28 per cent to $4.50 on Wednesday.

Jim Coleman, Gold Reserve's chairman of the board, said the group's persistence had paid dividends.

"There were people who wondered if this was ever going to happen ... it was a long process and we stayed with it," he told Petroleumworld.com.

 

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