UPDATE 2-Venezuela ends 2nd Gold Reserve Brisas' concession

* Government wants to run mines as joint ventures

* Gold Reserve says concession is small part of project

(Adds background, details)

CARACAS, May 27 (Reuters) - Venezuela has ended a second
concession held by Gold Reserve GRZ.TO at the Brisas project
in one of Latin America's largest gold deposits, a government
move to boost state control of key economic sectors.

The government's official publication on Wednesday declared
"extinct" the Brisas del Cuyuni concession, one of several
properties making up the Brisas project.

Venezuela's socialist President Hugo Chavez has
nationalized many industries in South America's top oil
exporter, and he plans to develop the mining sector via
government-controlled joint ventures.

Two days ago, the government ended Gold Reserve's El Pauji
concession in the same project. Brisas contains an estimated
10.2 million ounces of gold and adjoins the legendary Las
Cristinas project.

Gold Reserve said in a statement on Tuesday that the Brisas
del Cuyuni alluvial gold concession comprises approximately 3
percent of the proven and probable gold reserves of the Brisas
project. It said El Pauji contained no mineralization.

Chavez wants to develop Brisas and Las Cristinas, together
one of Latin America's largest gold projects, via a joint
venture between the government and Russian-owned mining
companies.

Gold Reserve said on Tuesday it did not intend to comply
with a request by the mining ministry for all the technical
information about Brisas.

Gold Reserve's President Doug Belanger said the government
was obstructing the company's rights at the project and that he
would look for $5 billion compensation through international
arbitration if an amicable solution was not found.
(Reporting by Ana Isabel Martinez; Writing by Frank Jack
Daniel; Editing by David Gregorio)