Gold Reserve finalizes Caterpillar equipment purchase agreement

    SPOKANE, WA, June 20 /CNW/ - Gold Reserve Inc. (TSX:GRZ - AMEX:  GRZ) Gold
Reserve Inc. is pleased to announce that it has finalized negotiations with
Caterpillar Inc. and its local Venezuelan dealer, Venequip S.A., to provide
Caterpillar haulage equipment, front end loaders and construction machinery
for the construction and operation of Gold Reserve's Brisas gold and copper
mine in Venezuela.
    Jim Geyer, Senior Vice President of Gold Reserve, said, "We have
established an excellent relationship with Caterpillar and Venequip and we are
very happy that Caterpillar views our Brisas mine as strategically important
within Venezuela and has agreed to support our mining plans with a steady
supply of high-quality equipment, spare parts, and technical expertise.
Venequip is a first class Caterpillar dealer and will provide excellent
in-country support to our construction and future operations fleet."
    Gold Reserve has initiated this alliance with Venequip by ordering 21
pieces of construction equipment, with a value of more than $10 million, to be
delivered before the end of 2007. The equipment is planned to be used for
early earthworks projects and to initiate construction of the tailings dam
    Subsequent equipment deliveries, during the next three years, are
expected to include more than thirty 236 tonne capacity haulage trucks, two 18
cubic meter front end loaders, seven D10T bulldozers, and other support
equipment. In total, the agreement with Venequip and Caterpillar represents an
initial 3 year capital investment of approximately $80 million and nearly
$500 million in capital and spare parts purchases over the estimated life of
mine operation.

    Gold Reserve Inc. is a Canadian company developing the Brisas gold copper
project in Southeastern Venezuela. Brisas has NI-43-101 reserves of
485 million tonnes of ore grading 0.67 grams per tonne gold and 0.13% copper
containing 10.4 million ounces of gold and 1.3 billion pounds of copper (using
a revenue cutoff grade of US $3.04 per tonne and a gold price of US $400 and a
copper price of US $1.15 per pound). The Company expects to finance the
construction of Brisas with a combination of debt and equity. The mine plan
anticipates using conventional truck and shovel mining methods with the
processing of ore at full production of 70,000 tonnes per day, yielding an
average annual production of 456,000 ounces of gold and 60 million pounds of
copper for a mine life of 18.5 years. Using copper as a byproduct, operating
costs are expected to be US $126 per ounce (using US $470 per ounce of gold
and US $1.80 per pound of copper). The Qualified Personnel for the NI 43-101
Report are Susan Poos of Marston and Marston, Inc. and Richard Addison and
Richard Lambert of Pincock, Allen and Holt, all registered professional

    Forward-Looking Statements

    Certain statements included herein, including those that express
management's expectations or estimates of our future performance or concerning
the Brisas Project, constitute "forward-looking statements" within the meaning
of the United States Private Securities Litigation Reform Act of 1995.
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 financial results, performance, or achievements of Gold
Reserve Inc. to be materially different from our estimated 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,
concentration of operations and assets in Venezuela; corruption and uncertain
legal enforcement; requests for improper payments; regulatory, political and
economic risks associated with Venezuelan operations (including changes in
previously established legal regimes, rules or processes); the ability to
obtain or maintain the necessary permits or additional funding for the
development of the Brisas Project; in the event 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)
significantly differ or change as a result of actual results in our expected
construction and production at the Brisas Project (including capital and
operating cost estimates); 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; 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 the Company'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 the Company or persons acting on its behalf are
expressly qualified in their entirety by this notice. The Company disclaims
any intent or obligation to update publicly these forward-looking statements,
whether as a result of new information, future events or otherwise.

    On Behalf of the Board of Directors:

    A. Douglas Belanger, President
    926 W. Sprague Ave., Suite 200
    Spokane, WA 99201 USA
    Tel. (509) 623-1500
    Fax (509) 623-1634

For further information:

For further information: A. Douglas Belanger, President, 926 W. Sprague
Ave., Suite 200, Spokane, WA, 99201, USA, Tel. (509) 623-1500, Fax (509)

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