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Company Information for Rusoro Mining Ltd
Company stock charts - 12 Month chart
 TSX.V; RML
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Company Statement
Exceptional Production Growth Profile
Rusoro Mining is a junior gold producer with a large land position in the prolific Bolivar State mining region of Venezuela. With the acquisition of the Choco 10 and Isidora Mines in the El Callao district of southern Venezuela, the Company has expanded its asset base to 14.2 million ounces of gold (87 Mt @ 3.52g/t indicated and 111.4 Mt @ 1.93g/t inferred) and will produce approximately 150,000 oz/Au in 2008. The Company is currently working toward starting a bankable feasibility study for the Choco 10 Mine in 2009 to ultimately more than double annual production by 2012.
Management are very experienced in the country with strong government relationships at all levels and they are committed to aggressively pursuing the Company's goal to become an intermediate gold producer in the near term.
The Bolivar State Mining Region
Rusoro's properties are located in the heart of one of the most prolific gold belts in the world - the Precambrian Guyana Shield in Bolivar State, southeastern Venezuela. It is geologically identical to some of the world's largest mining areas, including Ashanti in West Africa and Kirkland Lake in Canada.
Although the gold belt is currently host to more than 50 million ounces of gold in various stages of development it is still in its infancy in terms of modern exploration techniques and gold production, making it the most prospective under developed mining region in the world.
Current Operations
CHOCO 10 MINE & MILL, EL CALLAO
Located in the historic El Callao District within 5km of the Company's Isidora Mine and 4km from Increible 6 project the Choco 10 mine and mill facility is currently producing approximately 10,000 Au ounces per month and is on pace to produce 150,000 Au ounces in 2008. Production from the Isidora Mine will be approximately 35,000oz Au to the end of 2008 and is subject to a 50/50 joint venture with the Venezuelan Government . The logistics and a timeline for production expansion are currently being formulated along with an aggressive plan for ore development. It is the Company's goal to double production over the next 36 months.
The entire Choco project encompasses 25,000 hectares of prime exploration ground and the project has excellent access via well maintained roads from the town of El Callao. All of the mineralized zones which make up the current resources are open to depth with only approximately 50% of the mineralized areas having been drill tested to date. The project will see 100,000m of drilling in 2008 to expand and upgrade the current resources and test new targets.
* NI43-101 RESOURCES, CHOCO 10
- Measured 2.6 Mt @ 2.9g/t - 243,000oz/Au
- Indicated 56.3 Mt @ 2.5g/t - 4,435,000oz/Au
- Inferred 42.9 Mt @ 2.2g/t - 3,020,000oz/Au
- Diamond drilling 2058 holes / 224,000m
ISIDORA MINE< EL CALLAO
The recently acquired Isidora Mine is part of the Block B land package located near the town of El Callao in Bolivar State, southeastern Venezuela. Rusoro now also controls additional leases near El Callao called the Puyero and Choco 7 projects and the entire additional land position acquired is approximately 18,272 hectares.
The high grade Isidora Mine is located 5 km from Rusoro's Choco 10 Mine and 112 km north of the La Camorra mill where the ore to date has been processed. The mine commenced production in 2005 and to date has produced a total of 190,000 ounces of gold at a rate of 250 to 300 t/d, of high grade gold ore. The plan going forward is to process the Isidora ore at the Choco 10 Mine which will greatly enhance the economics of the deposit by significantly decreasing the trucking distance (and related costs) of the ore, as well as lowering the cut-off grade and increasing the tonnes available for processing from the current mining plan.
* NI43-101 RESOURCES, ISIDORA
P&P 179,400 Mt @ 32.1 g/t Au (185,000 oz)
M&I 470,000 Mt @ 20.4 g/t Au (331,000 oz)
Inferred 99,000 Mt @ 14.1 g/t Au (45,000 oz)
Diamond Drilling 247 hole/48,800m
INCREIBLE 6 GOLD DEPOSIT, EL CALLAO
Located in the historic El Callao District within 4km of the Choco 10 mine, the project has excellent access via well maintained roads from the town of El Callao.
The proximity of the Increible 6 gold deposit to the Choco 10 mine creates a tremendous opportunity to share infrastructure and the Company is fast tracking the permitting process at Incredible 6 to truck and process the Increible 6 ore at Choco for early 2009. With successful permitting, this scenario will play a significant role in the expansion plans at the Choco 10 mine and will represent a significant capex cost saving for the Company at Increible 6. The Company will continue on with an aggressive 75,000m phase III drill program to expand and upgrade the current resources to the higher categories required to initiate a mining operation.
* NI43-101 RESOURCES, INCREIBLE 6
- Indicated 23.5Mt @ 2.11g/t - 1,587,000oz/Au
- Inferred 17.5Mt @ 1.95g/t - 1,100,000oz/Au
- Diamond drilling 499 holes / 83,000m
TWIN SHEAR, EL CALLAO
Twin Shear, also situated on the Block B concession, currently has a NI 43-101 compliant inferred resource estimate of 482,000 oz/Au.
The Twin Shear Resource was estimated by Scott Wilson RPA using a cut off of 8 g/t Au and a grade cap of 50g/t Au with a density of 2.7 used for all material. It is based on a total of 36 diamond drill hole intersections along a 1 km portion of a 2.2 km long structure. The structure is adjacent to the principal structures in the Isidora Mine. The mineralized zone has variable widths generally between 1 and 4 metres.
* NI 43-101 RESOURCES, TWIN SHEAR
Inferred 1.2 Mt @ 12.5 g/t Au (482,000 oz)
THE EL DORADO DEPOSITS, SAN RAFAEL/EL PLACER (SREP), EMILIA AND CIEBA
The SREP deposit is the largest of the deposits located in proximity to the town of El Dorado. Both the SREP and Emilia Deposits are located adjacent to the Emilia Mill (and the La Camorra Mine and Mill which was acquired by Rusoro in 2008). The Cieba deposit is located 40 km to the south and is within trucking distance of the Emilia Mill which has historically processed ore from all three projects.
The Company recently (November 2008) published and updated NI 42-101 resource estimate for SREP. The extensive infill drilling program that was carried out and the updated 43-101 report are part of an aggressive underground development program at the project which includes the construction of a 1.8 km ramp which will access the main ore bodies at 200m depth and will be used to mine the high grade ore from the SREP deposit. It is the Company’s goal to begin commercial production at SPEP in 2009 at an annualized rate of 80,000 oz Au/yr. All permits for gold production are in place.
* NI43-101 RESOURCES, SREP
- Indicated 0.64 Mt @ 19.41g/t - 399,000oz/Au
- Inferred 0.70 Mt @ 23.2g/t - 523,500oz/Au
- Diamond drilling 329 holes / 87,000m
THE EMILIA MINE, El Dorado
The Emilia Mine, which includes the operating crushing, milling, and recovery facilities, are centrally located near the town of El Dorado. The plant historically processes ore from SREP and Emilia and high grade ore is also trucked from Ceiba. Production is expected to resume in 2009.
An aggressive program of underground development is currently underway at SREP (Alvarez Ramp) and Emilia which is designed to facilitate increased production. This will allow for an annualized production rate of 80,000 oz Au/yr in 2009.
VALLE HONDO DEPOSIT, CUYUNI DISTRICT
The Valle Hondo project covers more than 21,000 hectares about 40km southeast of the town of El Dorado. The size potential at Valle Hondo will enable the company to develop it as a stand alone project. The project is characterized by several kilometer-scale targets of which only one has been moderately drill tested. These targets have excellent potential to expand the near surface zones and define the higher grade results received to-date (up to 100 g/t). A 50,000 metre drill program is currently underway and is expected to be completed in early 2009.
* NI43-101 RESOURCES, VALLE HONDO
- Indicated 3.5Mt @ 0.92g/t - 103,000oz/Au
- Inferred 47Mt @ 0.89g/t - 1,344,000oz/Au
- Scoping study to be updated
- Diamond drilling 114 holes / 13,000m
CORPORATE SUMMARY
Rusoro has seen substantial growth since listing on the TSX-V in late 2006. The Company can be characterized as being in the early stages of its production growth profile. The Company will produce approximately 150,000 Au ounces in 2008 with an aggressive expansion plan underway at both Choco 10 and Emilia (SREP) to more than double production by 2012. The Company currently has a gold portfolio of 14.2 million ounces, aiming to reach 20 million ounces by 2010.
* TOTAL NI43-101 RESOURCES
- M & I 87.0 Mt @ 2.5g/t - 7,099,000oz/Au
- Inferred 108.2 Mt @ 1.8g/t - 7,072,000oz/Au
- Total Drill Holes 3198 / 437,000 metres
- 29.5 ounces Au per metre drilled
Geographical Spread
Venezula
Estimation parameters for 43-101 reports by Micon International or Scott Wilson Roscoe Postle:
1. Reserves and Resources are NI 43-101 compliant and follow the definitions for proven and probable reserves and Measured, Indicated and Inferred resource established by the CIM.
2. Interpretation and modeling completed on 25 metre to 12.5 metre spaced cross sections using Gemcom software.
3. Grade for Inc6 was interpolated using an inverse distance squared computation on two metre composites created using capped assays
4. Grades for Choco 10 and Valle Hondo resources were estimated using three-dimensional computerized models containing geological data and kriged estimated grades
5. Cut off used of 0.5 g/t for Inc6, Choco, and Valle Hondo / 4.0 g/t for underground zones at Ceiba, and 8.0g/t for Isidora, Emilia and SREP
6. SG values range from 1.7 to 2.0 for saprolite and 2.7 to 2.8 for hardrock.
7. Resources are inclusive of reserves.
8. For Choco 10 reserve and resource figures Rusoro's ownership is 95%.
9. Numbers may not add due to rounding.
Board of Directors and Key Management
| KEY MANAGEMENT |
| VLADIMIR AGAPOV, Chairman |
| Mr. Agapov is the major shareholder of Rusoro and has been instrumental in dealing with the co-ordination of relations with the Venezuela government and its various ministries. |
| ANDRE AGAPOV, Chief Executive Officer |
| Mr. Agapov has been instrumental in the advancement of the Company's Venezuelan gold projects over the past five years and will continue to play an integral role as Rusoro's projects moves forward. |
| GEORGE SALAMIS, President |
| Mr. Salamis has over 20 years experience directing exploration, development and mining operations in many of the major mining regions of the world. |
| GARY WARNWECKE, Interim Chief Financial Officer |
| Mr. Salas has held several senior finance positions in the mining industry, and was Financial Controller for Placer Dome’s operations in Venezuela. |
| MATIAS HERRERO, Vice President Finance |
| Mr. Herrero is a CPA and a former audit manager with Pricewaterhousecoopers (PwC). At PwC he worked in the mining division working with Canadian mining companies operating in Latin America. Mr. Herrero is fluent in Spanish and his very strong compliance and financial reporting background will play a leading role in coordinating Rusoro's Venezuelan and Canadian financial departments. |
| JOSE MANUAL RODRIGUEZ, Venezuelan General Manager |
| Mr. Rodriguez was formerly a Metallurgical Engineer with state owned gold miner CVG Minerven and brings a wealth of operational and managerial experience to the Company. |
| GREG SMITH, PGeo., VP Exploration |
| Mr. Smith has 14 years of experience working in Venezuela. He has been instrumental in the delineation of more than 3 million ounces of gold and his first hand knowledge of the major mining districts and exploration regions of the country are invaluable to the Company. |
| DIRECTORS |
| Vladimir Agapov |
| Andre Agapov |
| George Salamis |
| Jay Kaplowitz |
| Gordon Keep |
| Dimitry Ushakov |
| Abraham Stein |
| John Reynolds |
| Peter Hediger |
Company AddressSuite 2164 - 1055, Dunsmuir Street
|
Additional Address/Key ContactVenezuela Office: |
CapitalIssued Shares – 391.5 million
|
Year End31 December |
Major Shareholders
| Management – 20% |
| Gold Fields – 38% |
| Institutions – 25% |
Related News
24/07/08 - Rusoro Mining: The Matchmaker10/06/08 - Peter Hambro Mining Plays The Russian Game In Venezuela, With Rusoro On Board And Crystallex In Its Sights
20/11/07 - Rusoro Mining On Way To Becoming A Sizeable Producer Of Gold In Venezuela
13/06/07 - Rusoro Mining Has A Strong Hand To Play In Venezuelan Gold
Most Recent Statement
03/11/08 - Updated Resource Estimate for SREP and Days Vein08/09/08 - Rusoro Completes Landmark Agreements With Venezuelan Government to Custom Mill Ore for Minerven and Officially Process Ore for the Isidora Mine JV
05/09/08 - Rusoro Completes Landmark Agreements with Venezuelan Government to Custom Mill Ore for Minerven and Officially Process Ore for the Isidora Mine JV
28/08/08 - Report Filed For Isidora And Twin Shear Projects Acquired From Hecla Mining
07/08/08 - 43-101 Report Filed for Isidora and Twin Shear Projects Acquired From Hecla Mining
10/07/08 - Rusoro confirmed as Partner of Choice by Venezuelan Government - Acquisition of Hecla's Venezuelan Assets Closed