CVG had the right by presidential decree to grant mineral rights in joint venture agreements. This right has been challenged in court. Placer Dome had identified a resource of 13 million ounces of gold on the Cristinas 4 and 6 concessions. Construction was delayed until May 1997 with first production anticipated in mid-1999. The minimum mine life is 16 years at a mining rate of 55,000 tonnes per day and a milling rate of 40,000 tonnes per day.
Construction is anticipated to start in the next four months.
Some environmental permitting for earth works remain to be issued and tax negotiations continue. The partners anticipate they will be granted an exemption on a wholesale tax on consumables used in construction which should result in lower costs. A new board of directors has significantly strengthened Crystallex. International Bankers Ltd. And Honorary Consul for Canada in the Bahamas, Daniel Ross, partner at the law firm McCarthy Tetrault and Armando Zullo. Gold production in 1997 from Crystallex's Albino Mine will increase as mill through put increases to 450 tonnes per day.