Crystallex International (KRY – AMEX)

Dear Bottarelli Research Member,

First off, congratulations on your Dendreon (DNDN – NASDAQ) gains. This little stock is only going to get better, so make sure you have exposure to this powerful little gem. In the meantime, I think it’s time we add some metals into our portfolio. We’ve already logged great gains on Idaho General Mines (GMO – AMEX) and Uranerz Energy (URZ – AMEX), and we also just added Polymet Mining Corp. (PLM). But now I think it’s time to add a small gold company. The company’s name is Crystallex International (KRY – AMEX). I want to recommend it here but I also believe it’s going to pull back after this big run, so let’s use a buy under $ 3.60 as our order. I feel confident we will get filled.

Now before I turn this over to Bryan, I also want to make sure you take full advantage of one of our recent picks called Raptor Networks Technology (RPTN.OB).I urge you to add to your position on this pullback. I’m getting some nice feedback about them going after governmental contracts, and I would not be at all surprised if shares double from here. With that I’ll turn things over to Bryan. We’ve had some great plays as of late — so let’s keep it going with KRY!

Sincerely,

“The awarding of the Brisas environmental permit is a clear signal that Venezuela is fulfilling its promise to advance mining projects”

- Crystallex President and CEO Gordon Thompson

Mark is the master at uncovering small and explosive metals plays — so when he came to me with KRY, I instantly knew we had another stock with uncommon potential on our hands.

Crystallex engages in the exploration, development, mining, production, and processing of gold primarily in Venezuela. Now when someone says “Venezuela,” I instantly think of Hugo Chavez, the President of Venezuela and a critic of neoliberal globalization and U.S. foreign policy. Some world leaders, including the government of the United States, view Chávez as a threat to global oil prices and regional stability. But when it comes to this play, we’re talking about gold. And Crystallex owns rights to a Venezuelan gold mine that could be the biggest undeveloped gold claim in the world. This fact alone makes Crystallex a speculative play with explosive upside potential.

Recently, KRY was awarded an environmental permit that looks to give the go-ahead to further develop this powerful gold site — which is drawing intense investor interest in KRY. Crystallex President and CEO Gordon Thompson said, “the awarding of the Brisas environmental permit is a clear signal that Venezuela is fulfilling its promise to advance mining projects. Crystallex is in the final stages of environmental permitting for the Las Cristinas project and looks forward to the timely conclusion of the permitting process at MARN.”

Their principal asset is the Las Cristinas property in Bolivar State, Venezuela. Other Bolivar State assets include Tomi Mine, the Lo Increible properties, the Revemin Mill, and Albino project. As of February 13th, it’s reported that Las Cristinas had proven and probable reserves of 13.6 million ounces of gold. If the environmental permit leads to further gold discoveries, the stock could experience tremendous upside in the coming 6-8 months. That’s the catalyst for this week’s play.

Chart-wise, you can see the potential of this play. The mere awarding of the permit increased the stock significantly in one day — so just imagine what’ll happen if the further development leads to a major gold discovery. We could be looking at a double or triple in a short period of time — so let’s establish a position now. But like Mark said above, let’s not chase the shares at current levels. Let’s buy on any dips under $3.60.

PLAY: Buy shares of Crystallex International (KRY – AMEX) on any dips under $3.60, good for the week.

Sincerely,