Crystallex reserves rise with gold price (February 27, 2006)

Responding to the higher gold price, Crystallex International (KRY-T, KRY-X) has brought some marginally economic resources at its Las Cristinas gold project into reserves.

The new calculation, by consulting firm Mine Development Associates, recalculates the Cristinas reserve using a US$400-per-oz. gold price, up from a previous US$350 basis. The result is a larger reserve with a lower stripping ratio.

Cristinas’ Conductora pit now has a proven and probable reserve of 328 million tonnes at an average 1.2 grams gold per tonne, up from a figure of 276 million tonnes grading 1.3 grams per tonne calculated last August. The effect is to bring about 969,000 oz. into reserve.

The probable reserve in the smaller Mesones pit increases to 25.7 million tonnes at 1.1 grams gold per tonne, from the previous 18.5 million tonnes grading 1.3 grams. That change adds 149,000 oz. to the reserve.

The new reserve figures draw new lines around the economic mineralization, but there is no change to the resource at Las Cristinas.

With more material defined as ore, the stripping ratio of the two pits — previously 1.57:1 — falls to 1.14:1.