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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 resent acquisition of the Choco 10 mine the Company has expanded its asset base to 12.8 million ounces of gold and will reach an annualized production rate of 150,000 oz/yr in 2008. Rusoro will drill in excess of 300,000 meters in 2008 to expand and upgrade its gold ounces for projected production expansion at the Choco 10 and the Company's Emilia Mine in El Dorado.
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 more than double annualized production by 2011 and reach intermediate gold producer status.
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, EL CALLAO
Rusoro took over operation of the mine in October of 2007. The first quarter as the operator (Q4 2007) resulted in the mine producing at capacity for a full quarter for the first time in its history. During this time Choco produced just shy of 10,000 ounces per month and is on course to produce 120,000 ounces of gold in 2008, with none of the mine's production hedged.
The long term plan for Choco has always been to significantly increase production and the initial mine was engineered to accommodate future staged expansion. With the mine now consistently operating at its initial capacity forecast, 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 more than double production by 2011.
Located in the historic El Callao District within 4km of the Company's Increible 6 project, Choco encompasses 25,000 hectares of prime exploration ground. 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 2.3 Mt @ 2.9g/t - 221,000oz/Au
- Indicated 53.8 Mt @ 2.4g/t - 4,230,000oz/Au
- Inferred 40.8 Mt @ 2.2g/t - 2,870,000oz/Au
- Diamond drilling 2058 holes / 224,000m
INCREIBLE 6 GOLD DEPOSIT, EL CALLAO
Located in the historic El Callao District within 4km of the resently acquired 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 the end of 2008. 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
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 Hecla's La Camorra Mine, while Cieba is located 40 km south, within trucking distance of the Emilia Mill which historically processes ore from all three projects.
The Company drilled in excess of 80,000m at SREP in 2007 which will be included in an updated 43-101 estimation expected in Q2 2008. The extensive infill drilling and 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. This ore development is being done in conjunction with a comprehensive upgrade and expansion of the Company's mill facility which should see the facility produce at an annualized rate of 100,000 oz Au/yr in Q4 2008. All permits for gold production are in place.
* NI43-101 RESOURCES, SREP (2006 report)
- Indicated 0.92Mt @ 16.6g/t - 490,000oz/Au
- Inferred 0.72Mt @ 15.7g/t - 367,000oz/Au
- Diamond drilling 329 holes / 87,000m
- Updated 43-101 estimation expected Q2 2008
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 processes ore from SREP and Emilia and high grade ore is also trucked from Ceiba. Production has been scaled back to facilitate a comprehensive upgrading and expansion of the facilities. With all of the principal pieces of equipment on-site the work is progressing.
An aggressive program of underground development is currently underway at SREP (Alvarez Ramp) and Emilia which is designed to facilitate increased production. This development along with the mill upgrades will allow for an annualized production rate of 100,000 oz Au/yr by the end of 2008.
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 Q2 2008.
* 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 in its first year since listing and is incredibly only in the early stages of its production growth profile. The Company will produce approximately 150,000 Au ounces in 2008, with aggressive expansion plans underway at both Choco 10 and Emilia to more than double production by 2011. The Company currently has a gold portfolio of 12.8 million ounces and is scheduled to drill 300,000m in 2008- aiming to reach 20 million ounces by 2010.
* TOTAL NI43-101 RESOURCES
- M & I 84.0 Mt @ 2.5g/t - 6,630,000oz/Au
- Inferred 108.2 Mt @ 1.8g/t - 6,220,000oz/Au
- Total Drill Holes 3198 / 437,000 metres
- 29.5 ounces Au per metre drilled
Geographical Spread
Venezula
*Estimation parameters for updated 43-101 resource estimates:
1. Reserves and Resources are NI 43-101 compliant and follow the definitions for proven and probable reserves and Measired, Indicated and Inferred resource established by CIM
2. All resource estimates supported by independent technical reports; Choco and Increible reports by Micon International and Ceiba, Emilia, Valle Hondo and SREP reports by RPA
3. Interpretation and modeling completed on 25 metre to 12.5 metre spaced cross section using Gemcom software
4. Grade for Inc6 was interpolated using inverse distance squared computation on two metre composites created using capped assays
5.Grades for Choco 10 and Valle Hondo resources were estimated using three-
dimensional computerized models containing geological data kriged estimated grades.
6. Cut off used of 0.5 g/t for Inc6, Choco, and Valle Hondo / 4.0 g/t for underground zones at Ceiba, Emilia nad SREP
7. SG values of 2.0 for saprolite and 2.7 for hardrock.
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. |
| COREY ALLEN, Chief Operating Officer |
| Mr. Allen has over 25 years of experience directing the engineering for mine development as well as mine and metallurgical operations for projects in North America, Mexico and Central and South America. |
| 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: |
Year End31 December |
Major Shareholders
| Management – 27% |
| Gold Fields – 36% |
| Institutions – 22% |
Related News
11/06/08 - Peter Hambro Mining Plays The Russian Game In Venezuela, With Rusoro On Board And Crystallex In Its Sights20/11/07 - 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
19/06/08 - Rusoro continues Venezuelan Consolidation, Acquires Hecla's Venezuelan Assets10/06/08 - Rusoro Mining raises US$80 Million via Exchangeable Loan
06/06/08 - Rusoro Mining Reports Q1 2008 Financial Results
22/05/08 - Rusoro Mining Releases Drilling Update
15/05/08 - Rusoro Mining Ltd. Appoints VP Finance and Interim CFO
08/05/08 - Rusoro Awards Scoping and Feasibilty Studies for Choco 10 to Micon International Ltd.