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Crystallex International Corporation Denver Gold Forum September 2007.

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Presentation on theme: "Crystallex International Corporation Denver Gold Forum September 2007."— Presentation transcript:

1 Crystallex International Corporation Denver Gold Forum September 2007

2 Disclosure Statement SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This slide presentation contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including: statements relating to the estimated reserves and resources at Las Cristinas; anticipated results of drilling programs, feasibility studies or other analyses; the potential to increase reserves and expand production, at Las Cristinas; Crystallex's projected construction and production schedule, and cost and production estimates, for Las Cristinas; and management's statements regarding its expectations regarding mining in Venezuela. Forward-looking statements are based on estimates and assumptions made by Crystallex in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Crystallex believes are appropriate in the circumstances. Many factors could cause Crystallex's actual results, performance or achievements to differ materially from those expressed or implied by the forward looking statements, including: gold price volatility; impact of any hedging activities, including margin limits and margin calls; discrepancies between actual and estimated production, between actual and estimated reserves, and between actual and estimated metallurgical recoveries; mining operational risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment; speculative nature of gold exploration; dilution; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property. These factors and others that could affect Crystallex's forward-looking statements are discussed in greater detail in the section entitled "Risk Factors" in Crystallexs Annual Information Form (which is included in the Annual Report on Form 40-F that Crystallex files with the United States Securities and Exchange Commission (the "SEC") and elsewhere in documents filed from time to time with the Canadian provincial securities regulators, the SEC and other regulatory authorities. These factors should be considered carefully, and persons reviewing this press release should not place undue reliance on forward-looking statements. Crystallex has no intention and undertakes no obligation to update or revise any forward-looking statements in this press release, except as required by law. NOTE TO U.S. SHAREHOLDERS: The terms "Proven Reserve" and "Probable Reserve" used in this slide presentation are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council on August 20, 2000 as may be amended from time to time by the CIM. These definitions differ from the definitions in the SEC's Industry Guide 7. The terms, "Measured Resource", "Indicated Resource" and "Inferred Resource" used in this press release are Canadian mining terms as defined in accordance with National Instruction 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the CIM Standards. While the terms "Measured Resource", "Indicated Resource", and "Inferred Resource" are recognized and required by Canadian regulations, they are not defined terms under Industry Guide 7 and normally are not permitted to be used in reports and registration statements filed with the SEC. As such, information contained in this report concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by U.S. companies in SEC filings. With respect to "Indicated Resource" and "Inferred Resource" there is a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It can not be assumed that all or any part of an "Indicated Resource" or "Inferred Resource" will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. For a detailed discussion of resource and reserve estimates and related matters see the Company's technical reports, the Annual Information Form and other reports filed by the Crystallex on and A qualified person has verified the data contained in this presentation.

3 Crystallex Share Data Trading Symbol: KRY Exchanges: TSX and AMEX 262 million I/O approx I 292 million FD approx US$ 2.86 I Cdn$ 2.89 US$ 749 million I Cdn$ 757 million Cash US$ 39 million Total Assets: US$ 329 million Total Debt: US$ 82 million Shareholders Equity: US$ 233 million At June 30, 2007 Market Cap Price (September 14, 2007) Common Shares (at June 30, 2007) Average daily trading volume (trailing 3 months) AMEX:2.1 million shares (approx) TSX:1.0 million shares (approx)

4 Profile & Investment Highlights Developing intermediate Canadian gold mine developer and operator Las Cristinas reserves of 16.9 million ounces calculated at $550/oz. Design and Engineering for the Las Cristinas project in Venezuela is essentially complete; awaiting final permit to commence construction Hedge free Significantly undervalued relative to peer group on the basis of Proven and Probable Reserves Good share trading liquidity on TSX and AMEX

5 Management Team Gordon Thompson, President, CEO and Director Hemdat Sawh, CFO Robert Crombie, Senior VP Corporate Development William Faust, COO and Senior Vice President Dr. Richard Spencer, VP Exploration

6 Crystallexs History in Venezuela Investor in mining projects since early 1990s Crystallex has permitted, constructed and operated 3 mines in Venezuela since early 1990s Las Cristinas is the 4 th gold mine under development by Crystallex in Venezuela 2004 – Crystallex received the Outstanding Citizen Award in Bolivar State for its community programs Committed to local communities through corporate and social responsibility programs

7 Corporate & Social Responsibility Supporting local communities with long-term employment, training, education, economic development, local infrastructure and health care Construction of 30 new homes for local residents Installed 3 water treatment plants and associated reticulation Constructing sewage treatment plant Installed sewer networks Paved local roads Upgraded local medical centre, providing doctors, and ongoing medical supplies for the centre Funding local education scholarship programs Providing ongoing job training programs to small miners associations Sponsoring training programs for local communities On a yearly basis, train University Technical Graduates; up to 25 per year Established government requested anti-malaria facility at site

8 Crystallex Project Location Map Good Access & Infrastructure -Deep water port at Puerto Ordaz, 360km from site -Site is 6km from paved international highway -Paved Airstrip at site Hydro-electric Power: -Substation 6 km from site -Cost approximately 3c USD per kwh Fuel cost approximately 20 cents USD per gallon Bolivar State, Venezuela

9 Conventional operations Simple technology Conventional mining fleet - 18 m 3 shovels - 90 tonne trucks Conventional Metallurgical Process (89% gold recovery) - SAG & ball mills - Carbon-in-leach - Gravity circuit, doré Environmental Designed to exceed Venezuelan & World Bank Standards - Clean effluent discharge - Low earthquake risk (zone one) - Acid mine drainage risk is low

10 Las Cristinas Milestones Sept 2002 - Crystallex Signs Mine Operating Agreement PR – Sep 17, 2002 February 2003- Retains SNC-Lavalin PR - Feb 12, 2003 September 2003- Crystallex Completes Feasibility Study; Confirms Attractive Economics PR – Sep 10, 2003 March 2004 - CVG Approves Feasibility Study PR – Mar 8, 2004 - SNC-Lavalin Awarded EPCM Contract PR – Mar 25, 2004 April 2004- Submitted Environmental Impact Study (EIS) May 2004- Crystallex Releases 40,000 tpd Pre Feasibility Study PR – May 3, 2004 August 2004 - Crystallex Confirms receipt of Land Occupation Permit PR – Aug 4, 2004 August 2005- Crystallex Revises Reserves and Resources; Updates 2003 Feasibility Study PR – Aug 31, 2005 March 2006 - Crystallex Receives Ministry of Mines (MIBAM) Approval of feasibility study PR – Mar 26, 2006 June 2007 - Crystallex Receives Confirmation that Ministry of Environment (MinAmb) approved EIA PR – June 14, 2007 - Crystallex posts Bond and Taxes to MinAmb, Receives confirmation that all permit requirements have been fulfilled PR – June 14, 2007

11 Las Cristinas Engineering & Procurement Progress Engineering essentially complete All Long Lead Items fabricated and/or secured Expenditures to date US$120 million under the EPCM contract 19km access road upgraded and in use Construction camp refurbished Airstrip extended to 1,000m and tarred 13,500 metre drilling program completed February 2007 Resource & Reserve update: Proven & Probable Reserve 16.9Moz

12 Las Cristinas Las Cristinas Mining Fleet on Docks Geared Up and Ready To Go

13 Las Cristinas Mill Dorbyl Mill Shells Fabricated…

14 N Prior to 06-07 program 1 km Post 06-07 program Planned Conductora pit Planned Mesones- Sofia pit 2006-2007 Drill Program Summary of Results: Comparison of grade-thickness maps for Au

15 1 km Planned Conductora $350/oz pit Morrocoy zone Planned Mesones-Sofia $350/oz pit Diorite dyke Cordova zone N Las Cristinas: Distribution of Gold Zones Plan showing 1 g/t gold ore shells

16 Las Cristinas: Reserves and Resources (CIM standards) Tonnes (millions) Grams per tonne Ounces (millions) Reserves: $550 /oz 4641.1316.9 Proven & Probable Resources* Measured & Indicated * 6291.0320.8 Inferred 2300.85 6.3 Gold Price: US$550/oz, cut-off 0.4 g/t and higher Low Strip Ratio of 1.38:1 500m maximum depth Expected average metallurgical recovery of 89% Open at depth Further potential to increase reserves through exploration * Includes Reserves Reserves and Resources calculated by Mine Development and Associates in accordance with Canadian NI 43-101

17 Las Cristinas: Growth in estimated resources Reserves and Resources calculated by Mine Development and Associates in accordance with Canadian NI 43-101 Measured Resource Indicated Resource Measured, Indicated & Inferred Resource

18 Las Cristinas: Reserve details Reserves and Resources calculated by Mine Development and Associates in accordance with Canadian NI 43-101 Changes to Contained Ounces - Las Cristinas Reserves Effect of op cost increase: $7.66 to $9.81 Net Proven & Probable Reserve at $550/oz Exploration Success 14.01 5.31 3.41 (5.86) 16.86 0.00 5.00 10.00 15.00 20.00 25.00 Contained Ounces (Millions) Proven & Probable Reserves at $450/oz at Feb 2007 Increase in Gold Price from $450 to $550/oz

19 Las Cristinas: growth in Proven & Probable Reserves Reserves and Resources calculated by Mine Development and Associates in accordance with Canadian NI 43-101 Formal exploration commences $350/oz $375/oz$325/oz Prior exploration 18-hole, 7,120m drill program Estimated op costs rise from $6.46/t to $7.66/t 14-hole, 5,523m drill program 46-hole, 13,568m drill program, estimated op costs rise from $7.66 to $9.81/t Crystallex $350/oz $550/oz $450/oz $400/oz

20 Las Cristinas Gold Price Sensitivity Lerchs-Grossman pit shell sensitivity Reserves and Resources calculated by Mine Development and Associates in accordance with Canadian NI 43-101

21 Las Cristinas: Production overview - 20,000 tonnes per day First 5 yearsLife of Mine Annual Gold Production256,000 oz233,000 oz Total Cash CostsUS$244/oz**US$339/oz** Capital Costs excluding VAT* US$293 million Mine Life65 years *Based upon August 2005 Development Plan capital cost estimate **Includes a 3% exploitation tax and 3% royalty payable to the CVG based on a US$550/oz gold price

22 400 m 1 – 2 g/t >0.6 - 1.0 g/t 0.2 - 0.4 g/t >2 g/t 0.4 - 0.6 g/t Las Cristinas: Sheet-like, tabular ore zones -Host 95% of the gold reserve

23 100m Monzonite sill Cone-shaped ore zone at Mesones Cone-shaped ore zone at Sofia Diorite dyke Las Cristinas: Cone Shaped Mineralized Zones

24 Newmont Barrick Gabriel Agnico-Eagle Meridian Eldorado CRYSTALLEX Gold Reserve GoldCorp Source: Company Regulatory Filings IAMGold Yamana Kinross Proven & Probable Reserves Comparison with other North American Based Gold Companies Proven and Probable Reserves Net of Recoveries (million oz)

25 Source: Mineweb – September 14, 2007 * This # reflects the acquisition by GFI when gold was trading around $500/oz Meridian$1,450 Agnico Eagle$516 Bolivar Gold*$276 Barrick$231 Eldorado$231 Yamana$231 IAM Gold$229 Newmont$215 GoldCorp$195 CRYSTALLEX$44 Gabriel$42 Market Capitalization – Comparison with other North American Based Gold Companies Market Capitalization per Reserve Ounce (US$) Net of Recoveries

26 For public and media inquiries, or copies of the Companys annual report, quarterly reports or press releases, please contact: Richard Marshall Vice President, Investor Relations Tel: (800) 738-1577 18 King Street East, Suite 1210 Toronto, ON M5C 1C4 Tel: (416) 203-2448 Fax: (416) 203-0099 Email: Website: Gordon Thompson, President & CEO Hemdat Sawh,CFO William Faust, COO & Senior Vice President Dr. Richard Spencer, VP Exploration Crystallex shares trade under the symbol KRY on the Toronto and American Stock Exchanges. The Companys filings with the Ontario Securities Commission can be viewed on SEDAR at The Companys filings with the U.S. Securities and Exchange Commission can be viewed on EDGAR at

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