Download Sept 07 Slide Presentation

Crystallex International Corporation
Denver Gold Forum
September 2007
Disclosure Statement
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This slide presentation contains forward-looking statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including: statements relating to the estimated reserves and resources at Las Cristinas;
anticipated results of drilling programs, feasibility studies or other analyses; the potential to increase reserves and expand production, at Las Cristinas; Crystallex's projected
construction and production schedule, and cost and production estimates, for Las Cristinas; and management's statements regarding its expectations regarding mining in
Venezuela. Forward-looking statements are based on estimates and assumptions made by Crystallex in light of its experience and perception of historical trends, current
conditions and expected future developments, as well as other factors that Crystallex believes are appropriate in the circumstances. Many factors could cause Crystallex's actual
results, performance or achievements to differ materially from those expressed or implied by the forward looking statements, including: gold price volatility; impact of any hedging
activities, including margin limits and margin calls; discrepancies between actual and estimated production, between actual and estimated reserves, and between actual and
estimated metallurgical recoveries; mining operational risk; regulatory restrictions, including environmental regulatory restrictions and liability; risks of sovereign investment;
speculative nature of gold exploration; dilution; competition; loss of key employees; additional funding requirements; and defective title to mineral claims or property. These
factors and others that could affect Crystallex's forward-looking statements are discussed in greater detail in the section entitled "Risk Factors" in Crystallex’s Annual Information
Form (which is included in the Annual Report on Form 40-F that Crystallex files with the United States Securities and Exchange Commission (the "SEC") and elsewhere in
documents filed from time to time with the Canadian provincial securities regulators, the SEC and other regulatory authorities. These factors should be considered carefully, and
persons reviewing this press release should not place undue reliance on forward-looking statements. Crystallex has no intention and undertakes no obligation to update or revise
any forward-looking statements in this press release, except as required by law.
NOTE TO U.S. SHAREHOLDERS: The terms "Proven Reserve" and "Probable Reserve" used in this slide presentation are Canadian mining terms as defined in accordance with
National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM")
Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council on August 20, 2000 as may be amended from time to time by the CIM. These definitions differ
from the definitions in the SEC's Industry Guide 7. The terms, "Measured Resource", "Indicated Resource" and "Inferred Resource" used in this press release are Canadian mining
terms as defined in accordance with National Instruction 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the CIM Standards. While the terms
"Measured Resource", "Indicated Resource", and "Inferred Resource" are recognized and required by Canadian regulations, they are not defined terms under Industry Guide 7 and
normally are not permitted to be used in reports and registration statements filed with the SEC. As such, information contained in this report concerning descriptions
of mineralization and resources under Canadian standards may not be comparable to similar information made public by U.S. companies in SEC filings. With respect to "Indicated
Resource" and "Inferred Resource" there is a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It can not be
assumed that all or any part of an "Indicated Resource" or "Inferred Resource" will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or
all of mineral deposits in these categories will ever be converted into reserves. For a detailed discussion of resource and reserve estimates and related matters see the Company's
technical reports, the Annual Information Form and other reports filed by the Crystallex on www.sedar.com and www.sec.gov. A qualified person has verified the data contained in
this presentation.
Crystallex Share Data
Trading Symbol: KRY
Common Shares (at June 30, 2007)
Price (September 14, 2007)
262
Exchanges: TSX and AMEX
million I/O approx I
292
million FD approx
US$ 2.86
I
Cdn$ 2.89
Market Cap
US$ 749 million
I
Cdn$ 757 million
At June 30, 2007
Cash
Total Assets:
Total Debt:
Shareholders’ Equity:
Average daily trading volume
(trailing 3 months)
US$ 39 million
US$ 329 million
US$ 82 million
US$ 233 million
AMEX: 2.1 million shares (approx)
TSX: 1.0 million shares (approx)
Profile & Investment Highlights
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Developing intermediate Canadian gold mine developer and
operator
Las Cristinas reserves of 16.9 million ounces calculated at
$550/oz.
Design and Engineering for the Las Cristinas project in
Venezuela is essentially complete; awaiting final permit to
commence construction
Hedge free
Significantly undervalued relative to peer group on the basis of
Proven and Probable Reserves
Good share trading liquidity on TSX and AMEX
Management Team
Gordon Thompson, President, CEO and Director
Hemdat Sawh, CFO
Robert Crombie, Senior VP Corporate Development
William Faust, COO and Senior Vice President
Dr. Richard Spencer, VP Exploration
Crystallex’s History in Venezuela
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Investor in mining projects since early 1990’s
Crystallex has permitted, constructed and
operated 3 mines in Venezuela since early
1990’s
Las Cristinas is the 4th gold mine under
development by Crystallex in Venezuela
2004 – Crystallex received the “Outstanding
Citizen Award” in Bolivar State for its community
programs
Committed to local communities through
corporate and social responsibility programs
Corporate & Social Responsibility
Supporting local communities with long-term employment, training,
education, economic development, local infrastructure and health care
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Construction of 30 new homes for local residents
Installed 3 water treatment plants and associated
reticulation
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Constructing sewage treatment plant
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Installed sewer networks
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Paved local roads
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Upgraded local medical centre, providing doctors, and
ongoing medical supplies for the centre
Funding local education scholarship programs
Providing ongoing job training programs to small
miners’ associations
Sponsoring training programs for local communities
On a yearly basis, train University Technical Graduates;
up to 25 per year
Established government requested anti-malaria facility
at site
Crystallex Project Location Map
Bolivar State, Venezuela
- Deep water port at
Puerto Ordaz, 360km
from site
- Site is 6km from paved
international highway
- Paved Airstrip at site
Good Access
&
Infrastructure
Hydro-electric Power:
- Substation 6 km from
site
- Cost approximately
3c USD per kwh
Fuel cost approximately
20 cents USD per gallon
Conventional operations
Simple
technology
Environmental
Conventional mining
fleet
- 18 m3 shovels
- 90 tonne trucks
Conventional
Metallurgical Process
(89% gold recovery)
- SAG & ball mills
- Carbon-in-leach
- Gravity circuit, doré
Designed to exceed
Venezuelan & World
Bank Standards
- Clean effluent discharge
- Low earthquake risk (zone one)
- Acid mine drainage risk is low
Las Cristinas Milestones
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Sept 2002
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Crystallex Signs Mine Operating Agreement PR – Sep 17, 2002
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February 2003
- Retains SNC-Lavalin PR - Feb 12, 2003
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September 2003
- Crystallex Completes Feasibility Study; Confirms Attractive Economics PR – Sep 10, 2003
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March 2004
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CVG Approves Feasibility Study PR – Mar 8, 2004
- SNC-Lavalin Awarded EPCM Contract PR – Mar 25, 2004
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April 2004
- Submitted Environmental Impact Study (EIS)
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May 2004
- Crystallex Releases 40,000 tpd Pre Feasibility Study PR – May 3, 2004
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August 2004
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August 2005
- Crystallex Revises Reserves and Resources; Updates 2003 Feasibility Study PR – Aug 31, 2005
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March 2006
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Crystallex Receives Ministry of Mines (MIBAM) Approval of feasibility
study PR – Mar 26, 2006
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June 2007
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Crystallex Receives Confirmation that Ministry of Environment
(MinAmb) approved EIA PR – June 14, 2007
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Crystallex posts Bond and Taxes to MinAmb, Receives confirmation
that all permit requirements have been fulfilled PR – June 14, 2007
Crystallex Confirms receipt of Land Occupation Permit PR – Aug 4, 2004
Las Cristinas
Engineering & Procurement Progress
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Engineering essentially complete
All Long Lead Items fabricated and/or
secured
Expenditures to date US$120 million
under the EPCM contract
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19km access road upgraded and in use
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Construction camp refurbished
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Airstrip extended to 1,000m and tarred
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13,500 metre drilling program completed
February 2007
Resource & Reserve update: Proven &
Probable Reserve 16.9Moz
Las Cristinas
Las Cristinas Mining Fleet on Docks Geared Up and Ready To Go
Las Cristinas Mill
Dorbyl Mill Shells Fabricated…
2006-2007 Drill Program Summary of Results:
Comparison of grade-thickness maps for Au
Planned MesonesSofia pit
N
Planned
Conductora pit
1 km
Prior to 06-07 program
Post 06-07 program
Las Cristinas: Distribution of Gold Zones
Plan showing 1 g/t gold ore shells
Morrocoy zone
Planned
Mesones-Sofia
$350/oz pit
Cordova zone
Planned
Conductora
$350/oz pit
Diorite
dyke
N
1 km
Las Cristinas:
Reserves and Resources (CIM standards)
Tonnes
(millions)
Grams per
tonne
Ounces
(millions)
464
1.13
16.9
Measured & Indicated *
629
1.03
20.8
Inferred
230
0.85
6.3
Reserves: $550 /oz
Proven & Probable
Resources*
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Gold Price: US$550/oz, cut-off 0.4 g/t
and higher
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Low Strip Ratio of 1.38:1
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500m maximum depth
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* Includes Reserves
Expected average metallurgical recovery
of 89%
Open at depth
Further potential to increase reserves
through exploration
Reserves and Resources calculated by Mine Development and Associates
in accordance with Canadian NI 43-101
Las Cristinas
Resources
Las Cristinas: Growth in estimated
resources
30.0
Measured, Indicated
& Inferred Resource
27.04
25.0
Million Ounces
21.39
22.20
Indicated
Resource
21.08
20.76
20.0
17.66
15.33
16.24
15.0
10.0
Measured
Resource
5.38
5.0
2.24
2.46
2.57
0.0
2003
2004
2005
2006
2007
Year
Reserves and Resources calculated by Mine Development and Associates in accordance
with Canadian NI 43-101
2008
Las Cristinas: Reserve details
Changes to Contained Ounces - Las Cristinas Reserves
Contained Ounces (Millions)
25.00
3.41
5.31
20.00
15.00
10.00
5.00
14.01
Proven &
Probable
Reserves at
$450/oz at
Feb 2007
Exploration
Success
(5.86)
Effect of op
cost increase:
$7.66 to $9.81
Increase in
Gold Price from
$450 to $550/oz
0.00
Reserves and Resources calculated by Mine Development and
Associates in accordance with Canadian NI 43-101
16.86
Net Proven &
Probable
Reserve at
$550/oz
Las Cristinas:
growth in Proven & Probable Reserves
18.00
16.86
16.00
18-hole,
7,120m drill
program
Contained gold (Moz)
14.00
12.85
12.48
12.00
11.80
10.00
11.70
10.60
9.03
8.00
6.00
14.01
13.59
46-hole, 13,568m
drill program,
estimated op
costs rise from
$7.66 to $9.81/t
14-hole,
5,523m drill
program
Estimated op
costs rise from
$6.46/t to $7.66/t
7.46
Formal
exploration
commences
11.22
10.17
Prior exploration
Crystallex
$550/oz
4.00
$350/oz
2.00
$375/oz
$450/oz
$325/oz
$400/oz
$350/oz
0.00
1990
1992
1994
1996
1998
2000
2002
2004
Year
Reserves and Resources calculated by Mine Development and
Associates in accordance with Canadian NI 43-101
2006
2008
2010
Las Cristinas Gold Price Sensitivity
Las Cristinas Gold Price Sensitivity (Lerchs-Grossman pit shell
sensitivity)
Lerchs-Grossman pit shell sensitivity
700
19.91
650
Gold Price (US$/oz)
600
18.83
550
17.56
500
15.98
450
14.16
400
350
300
250
200
12.00
13.00
14.00
15.00
16.00
17.00
18.00
19.00
Proven & Probable Reserves (Moz)
Reserves and Resources calculated by Mine Development and Associates in accordance
with Canadian NI 43-101
20.00
21.00
22.00
Las Cristinas: Production overview - 20,000 tonnes per day
Annual Gold Production
Total Cash Costs
Capital Costs excluding
VAT*
Mine Life
First 5 years
Life of Mine
256,000 oz
233,000 oz
US$244/oz**
US$339/oz**
US$293 million
65 years
* Based upon August 2005 Development Plan capital cost estimate
** Includes a 3% exploitation tax and 3% royalty payable to the CVG
based on a US$550/oz gold price
Las Cristinas:
Sheet-like, tabular ore zones
-Host 95% of the gold reserve
400 m
>2 g/t
1 – 2 g/t
>0.6 - 1.0 g/t
0.4 - 0.6 g/t
0.2 - 0.4 g/t
Las Cristinas: Cone Shaped Mineralized Zones
Cone-shaped ore
zone at Sofia
Cone-shaped ore
zone at Mesones
Monzonite
sill
Diorite
dyke
100m
Proven & Probable Reserves
Comparison with other North American Based Gold Companies
Proven and Probable Reserves Net of Recoveries (million oz)
0
25
50
75
100
125
Barrick
Newmont
Kinross
GoldCorp
CRYSTALLEX
Agnico-Eagle
Gabriel
Gold Reserve
IAMGold
Eldorado
Yamana
Meridian
Source: Company Regulatory Filings
Market Capitalization –
Comparison with other North American Based Gold Companies
Market Capitalization per Reserve Ounce (US$) Net of Recoveries
Meridian
$1,450
Agnico Eagle
$516
Bolivar Gold*
$276
Barrick
$231
Eldorado
$231
Yamana
$231
IAM Gold
$229
Newmont
$215
GoldCorp
$195
CRYSTALLEX
$44
Gabriel
$42
Source: Mineweb – September 14, 2007
* This # reflects the acquisition by GFI when gold was trading around $500/oz
18 King Street East, Suite 1210
Toronto, ON M5C 1C4
Gordon Thompson, President & CEO
Hemdat Sawh,CFO
William Faust, COO & Senior Vice President
Dr. Richard Spencer, VP Exploration
Tel: (416) 203-2448
Fax: (416) 203-0099
Email: [email protected]
Website: www.crystallex.com
For public and media inquiries, or copies of the Company’s
annual report, quarterly reports or press releases, please contact:
Richard Marshall
Vice President, Investor Relations
Tel: (800) 738-1577
Crystallex shares trade under the symbol KRY on the Toronto and American Stock Exchanges.
The Company’s filings with the Ontario Securities Commission can be viewed on SEDAR at www.sedar.com
The Company’s filings with the U.S. Securities and Exchange Commission can be viewed on EDGAR at www.sec.gov