SPOKANE, Wash.--(Business Wire)--
Gold Reserve Inc. (NYSE-Amex:GRZ) (TSX:GRZ) reported today that stories in the
press relating to the takeover by the Government of Venezuela of the Brisas
Property in southeastern Venezuela are erroneous. Personnel, apparently from
CVG-Minerven, visited the Brisas Camp on Thursday claiming that they were there
to assume control of the Brisas Del Cuyuni Concession. The individuals who
arrived at the camp did not appear to have any written authorization to conduct
such action on behalf of the Government. Thus, their actions did not appear to
be legally supported. In any event, any action to assume control of the property
without recognizing the status of the underlying hard rock concession, which
contains 97% of the economic value of the mineral deposit, would be inconsistent
with Venezuelan law.
The Company on Wednesday October 21st filed its Request for Arbitration under
the Canada-Venezuela bilateral investment treaty before the International Centre
for the Settlement of Investment Disputes of the World Bank. This evident
retaliation against the Company is a further demonstration of the Government`s
wrongful treatment of Gold Reserve and its investments in Venezuela.
The Company`s staff at Brisas advised the persons who arrived on the property
that the Company will respond, in accordance with the applicable Venezuelan
laws, only to a duly authorized written request from the Government in respect
of the property.
Doug Belanger, President of Gold Reserve stated, "We are very disappointed by
this evident retaliatory action and have sent letters to the relevant
authorities in the Government informing them of this wrongful conduct. Gold
Reserve has always respected the laws of Venezuela and has the right to be
treated fairly on the basis of the rule of law."
In the past few weeks there has been an encroachment on the Brisas property of
small illegal miners and the Company has sent numerous formal and urgent
requests to the relevant Government agencies to assist in the removal of these
miners. However, the government response has been limited and the level of
mining activity is increasing daily. The Company is very concerned about the
safety of its employees as well as the safety of these illegal miners. Sadly,
just a few weeks ago several illegal miners were killed on the Las Cristinas
property adjacent to Brisas, when a pit collapsed around them due to the unsafe
conditions in which they work. Also, this type of illegal mining activity
inevitably results in serious environmental degradation. Gold Reserve will not
be held responsible for this kind of illegal activity on the property when the
Government fails to discharge its responsibilities in these matters.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements that state Gold Reserve`s or
its management`s intentions, hopes, beliefs, expectations or predictions for the
future. In this release, forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered reasonable by
management at this time, are inherently subject to significant business,
economic and competitive uncertainties and contingencies.
We caution that such forward-looking statements involve known and unknown risks,
uncertainties and other risks that may cause the actual outcomes, financial
results, performance, or achievements of Gold Reserve to be materially different
from our estimated outcomes, future results, performance, or achievements
expressed or implied by those forward-looking statements.
Numerous factors could cause actual results to differ materially from those in
the forward-looking statements, including without limitation: the outcome or
processof any potential proceedings under the Venezuelan legal system or before
arbitration tribunals as provided in investment treaties entered into between
Venezuela, Canada and/or Barbados to determine compensation due to Gold Reserve
resulting from its claims in arbitration against the Venezuelan government and
its agents and agencies, or if the Brisas Project is transferred to the
Venezuelan government and the parties do not reach agreement on compensation;
concentration of operations and assets in Venezuela; corruption and uncertain
legal enforcement; requests for improper payments; competition with companies
that are not subject to or do not follow Canadian and U.S. laws and regulations;
regulatory, political and economic risks associated with Venezuelan operations
(including changes in previously established laws, legal regimes, rules or
processes); the ability to obtain, maintain or re-acquire the necessary permits
or additional funding for the development of the Brisas Project; the result or
outcome of the trial regarding the enjoined hostile takeover bid for Gold
Reserve; significant differences or changes in any key findings or assumptions
previously determined by us or our experts in conjunction with our 2005 bankable
feasibility study (as updated or modified from time to time) due to actual
results in our expected construction and production at the Brisas Project
(including capital and operating cost estimates) or our inability to undertake
such construction or production; the method and manner of our determination of
reserves, risk that actual mineral reserves may vary considerably from estimates
presently made; impact of currency, metal prices and metal production
volatility; fluctuations in energy prices; changes in proposed development plans
(including technology used); our dependence upon the abilities and continued
participation of certain key employees; the prices, production levels and supply
of and demand for gold and copper produced or held by Gold Reserve; the
potential volatility of Gold Reserve`s Class A common shares; the price and
value of Gold Reserve`s notes, including any conversion of notes into Gold
Reserve`s Class A common shares; the prospects for exploration and development
of projects by Gold Reserve; and risks normally incident to the operation and
development of mining properties.
This list is not exhaustive of the factors that may affect any of Gold Reserve`s
forward-looking statements. Investors are cautioned not to put undue reliance on
forward-looking statements. All subsequent written and oral forward-looking
statements attributable to Gold Reserve or persons acting on its behalf are
expressly qualified in their entirety by this notice. Gold Reserve disclaims any
intent or obligation to update publicly or otherwise revise any forward-looking
statements or the foregoing list of assumptions or factors, whether as a result
of new information, future events or otherwise, subject to its disclosure
obligations under applicable rules promulgated by the U.S. Securities and
Exchange Commission (the "SEC").
In addition to being subject to a number of assumptions, forward-looking
statements in this release involve known and unknown risks, uncertainties and
other factors that may cause actual results and developments to be materially
different from those expressed or implied by such forward-looking statements,
including those factors outlined in the "Cautionary Notes" and "Risks Factors"
contained in Gold Reserve's filings with the Canadian provincial securities
regulatory authorities and U.S. Securities and Exchange Commission, including
Gold Reserve`s Annual Information Form and Annual Report on Form 20-F for the
year ended December 31, 2008, filed with the Canadian provincial securities
regulatory authorities and U.S. Securities and Exchange Commission,
respectively, on March 31, 2009.
Gold Reserve Inc.
A. Douglas Belanger, President, 509-623-1500
Fax: 509-623-1634
www.goldreserveinc.com
Copyright Business Wire 2009
