A ruling by the Venezuelan Supreme Court suspending the issuing of mining concessions in the Imataca Forest Preserve could frustrate Gold Reserve (GLR-T) in its efforts to obtain hardrock mineral rights for its Las Brisas gold project.
The preliminary ruling was applauded by environmentalists, who believe the preserve, situated in eastern Venezuela, should remain free of mining.
The court will issue a definitive ruling sometime in the next four months.
Gold Reserve believes the suspension could result in delays at Las Brisas, which is situated in the Kilometre 88 district. The company holds alluvial rights to the project and has been applying f
or hardrock rights for more than
a year.
Gold Reserve and its Veneuelan attorneys say the suspension does not prohibit the government from granting the hardrock rights. Nonetheless, shares of
Gold Reserve fell to $4 from $6.32 following the announcement of the ruling.
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