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Hmmmm....I think, on balance, that KRY short was a good idea

Once again, Otto scrapes the bottom of the barrel with
the "Naomi-once-interviewed-Hugo" link to
get a nekkid photo on his blog....but she
does rock, and it's my tough

I took some profits on Gold Reserve (GRZ) before my original $2.20 target, but there's no rush there. If there's a panic sale Monday on GRZ I'll pick up more to lower my average. The reason (and to repeat for the very last time) is the U$2.36 minimum in residual asset value at the company. v It will also be able to fight Venezuela for compensation if things get legal, but it's quite likely that Chavezlandia will compensate GRZ on mutual terms, as it's been fairly straight and upstanding with the other foreigners it has kicked out of the country so far. If the market offers a panicky $1.50/share on GRZ Friday I'll take it happily, and then wait (though no farm betting, it goes without saying).

My KRY short at $1.13, on the other hand, can be put under the "successful trades" column. And as the company is debt laden, its present mines are loss making and running out of reserves rapidly and has also signed away its right to any foreign arbitration court hearing, it is royally royally screwed. I'll never have to mention that crooked company on my clean and tidy blog again.

Here's what Reuters has just published to push KRY down to under 0.70 in after hours trading. I hope you don't need any help in translating the word "no".


CARACAS, May 15 (Reuters) - Venezuela on Thursday shut the door to new gold projects and threatened other mining and logging concessions, in a new step by left-wing President Hugo Chavez to tighten control of natural resources.

The ban on mining in the mineral-laden Imataca Forest Reserve forest reserve and end to permits for open pits was a blow to Crystallex (KRY.TO: Quote, Profile, Research) and Gold Reserve (GRZ.A: Quote, Profile, Research). The Canadian companies have long been seeking environmental permits to exploit their concessions in the reserve.

Environment Minister Yuviri Ortega said the South American nation also was revising all mining and timber concessions.

"Venezuela will deny environmental permits for open-pit mine exploitation," Ortega told Reuters. "Neither private or public companies will for now explore Imataca's gold."

Imataca Forest Reserve, in the remote south-east of the Venezuela, contains what is believed to be one of Latin America's largest gold deposits.

(Reporting by Ana Isabel Martinez, Writing by Frank Jack Daniel)