Crystallex stock rallies on favourable mining report
October 29, 2007
Greetings investors
Shares of Crystallex International (KRY) have taken a stroll since I called the bottom last week at $2.60 per share. The stock is up better than 25% since last Thursday.
Today the company announced the findings of a government report which lauded its Las Cristinas gold project in Venezuela’s famed Kilometer 88 mining district. The report was prepared by an economic development commission which urged the government to issue the mining permits for Las Cristinas, and suggested that delays were hampering regional economic development.
I’ve seen these ‘dueling’ government reports emerging from Venezuela for 10 years. They’re part of the good news/bad news oscillator that has made Crystallex such a predictable stock. One level of government or department issues a positive report on a project, while the opposition organizes a negative one from another agency.
Crystallex has been on its best behaviour since President Chavez put the multinationals on notice that poor corporate citizens would have their projects nixed or nationalized outright.
Of course what I’m interested to see is the reserve data from a comprehensive drilling program at Las Cristinas last summer, ostensibly to support a feasibility for a mine!
If that data has been released, I haven’t seen it.
Frankly, I don’t think we will see it until KRY gets what it deems to be the definitive green light on the project from the highest levels of government.
Meanwhile, I think we’ll see the stock travel to close to $4 per share in the coming weeks. It was hovering around $3.16 today.
Be careful out there.
Kb
The BarkerLetter on October 29th 2007 in Commodity investing
The BarkerLetter responded on 30 Oct 2007 at 6:31 am #
G. Vance writes to say the company announced on September 24 that measured and indicated resources at Las Cristinas grew from 17.6m to 20.76m ounces. Thanks for paying attention, G.