Crystallex nears target at Albino

Gold production from the Albino mine in Venezuela has increased dramatically.

The operation, situated in the Kilometre 88 region, cranked out 3,352 oz. in March — a whopping 73% increase over the previous month. Crystallex International (VSE) began operations at its newly commissioned carbon-in-pulp mill last December. When it reaches full capacity, the mill should produce 500 tons per day, or 4,000 oz. per month.

Revenue in March, which amounted to US$1.6 million, was used to make property payments of US$1 million and purchase capital equipment, as well and repay short-term debt.

Operating expenses were below budget at US$320,000, which is equivalent to less than US$100 per oz. produced.

Additional proceeds of US$395,000 were acquired through the milling of 4,000 tons of ore by a third party. The funds will be used to finance a program aimed at delineating reserves. Last year’s drill program on the Conductora shear zone added 33,005 oz. (averaging 0.33 oz. gold per ton) to reserves estimated at 553,000 tons grading 0.24 oz.

The recent decision by the Central Bank of Venezuela to allow gold companies to export up to 60% of their gold production for sale on international markets was welcomed by Crystallex President Marc Oppenheimer. “The Central Bank’s authorization of gold exports will open up many opportunities for the future growth and financial management of the company,” he said.