Rusoro Mining

Published : June 20th, 2008

NR - Hecla Venezuelan Assets AcquisitionThread-Topic: Rusoro NR - Hecla Venezuelan Assets Acquisitio

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                                     RUSORO MINING LTD.

                        Suite 2164 ? 1055 Dunsmuir Street, Four Bentall Centre

                                                                          Vancouver, BC V7X 1B1

                                    Tel:  604-632-4044    Fax:  604-632-4045 Toll Free 1 800-668-0091

                      Website: www.rusoro.com                email: info@rusoro.com

 

          Rusoro continues Venezuelan Consolidation, Acquires Hecla?s Venezuelan Assets

 

                             Second Tranche of US$80 million financing released

 

June 19, 2008                                                                                       Trading symbol (TSX-V): RML

Vancouver, Canada ? Rusoro Mining Ltd. (?Rusoro?) is pleased to announce that it continues to implement

its regional consolidation strategy with the acquisition of Hecla Mining Company?s (?Hecla?) Venezuelan

assets which include the Block B - Isidora mining leases and the La Camorra mill facility in Bolivar State,

southeastern Venezuela.  Hecla?s Venezuelan assets are being acquired for US$20 million in cash and

4,273,504 (US$5 million worth of) Rusoro shares.  The Hecla-Venezuela acquisition is subject to final regulatory

approval and is expected to close the week of June 23, 2008.

 

As a result of reaching this strategic milestone, the second tranche of Rusoro?s syndicated US$80 million financing

led by Peter Hambro Mining Plc (?PHM?) in the amount of US$52 million has been released.

Commenting on the acquisition, Rusoro CEO Andre Agapov states: ?The Hecla-Venezuela acquisition confirms our

exceptional growth profile and allows us to target an annual production rate of 220,000 ounces per year by the

end of 2008.  We have received strong in-country support for this acquisition and we look forward to employing

our Venezuelan expertise to re-energize the Hecla-Venezuela assets for the benefit of our shareholders and the

local communities.?

 

The Hecla-Venezuela Acquisition

This acquisition provides Rusoro with an immediate and significant increase in gold production, confirming Rusoro

as a focused gold company with an exceptional growth profile. The key benefits of this transaction to Rusoro include:

?         83% Increase in Gold Production.  By the end of 2008, the annualized targeted production rate from the

        Hecla-Venezuela assets is expected to be 100,000 ozs/year, bringing Rusoro?s aggregate targeted annualized

        production rate to approximately 220,000 ozs/year.

?         Exceptional Production Growth Profile.  With production capacity available at the La Camorra mill as well as  

        production expansion plans underway at Choco 10, management expects to increase production to 400,000 oz/yr

        by 2011, subject to the scoping and feasibility studies currently underway at Choco.

 

?         Exceptional Regional Synergies to Expedite Growth Profile.  Hecla?s fully operational La Camorra mill is situated

        approximately 2 km from Rusoro?s San Rafael/El Placer (?SREP?) deposits which are fully permitted for gold production,

        and 40 km from Rusoro?s Ceiba deposit.  The La Camorra mill has available capacity to treat SREP and Ceiba ore, which

        may eliminate the need to upgrade and expand the Emilia Mill facility.  As a result, significant cost savings for Rusoro are

        anticipated.

 

?         Unlocking Venezuelan Value.  This is the Company?s second significant acquisition in the region and Rusoro?s proven

        ability to operate in and manage the Venezuelan social and political environments should enable the Company to unlock

        further value from its assets and explore additional regional consolidation opportunities.

 

?         Increased Reserve and Resource Base.  Rusoro currently has NI 43-101 compliant resources of 6.63 M oz Au M&I

       (84.0 Mt @ 2.5 g/t) and 6.22M oz Au Inferred (108.2 Mt @ 1.8 g/t).  The Company expects the Hecla-Venezuela assets to

       add significant high quality gold ounces to the Company?s portfolio.  The Company has commissioned an NI 43-101 report

       on the resources and reserves at the Isidora Mine and a resource estimate on the Twin Shears potential mineral deposit to

       bring these resource estimates in line with NI 43-101 and TSX Venture Exchange guidelines. 

 

Hecla?s main Venezuelan asset is the Block B land package, including the producing Isidora Mine, near the town of El Callao in

Bolivar State, southeastern Venezuela.  Hecla also controls additional leases near El Callao called the Puyero and Choco 7 projects.

In total, Hecla?s land position is approximately 18,272 hectares.

 

Hecla also holds the fully permitted and operational La Camorra mill (and surrounding concessions north of the town of El Dorado)

which was constructed in 1994 and has undergone periodic upgrades since that time.. The mill is capable of processing 700 t/d

through a modified carbon-in-leach process with historical recovery averaging approximately 95%. Since 2005 the mill has been

processing ore from the Isidora Mine and small mining cooperatives at a rate between 300 and 400 t/d, on a five days per week basis.   

 

The Isidora Mine is located 5 km from Rusoro?s Choco 10 Mine and 112 km north of the La Camorra mill. 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. 

 

As part of the agreement with Hecla, the parties anticipate that the La Camorra mill and concession may revert to the Venezuelan

State on or about January 1, 2009.  Rusoro will own the La Camorra assets until that time and is pleased to announce that it is in

discussions with the Venezuelan government to explore opportunities with Minerven and MIBAM to form a joint venture

regarding the La Camorra and Block B - Isidora assets.  Commenting on the prospective joint venture, Rusoro CEO Andre

Agapov states:  ?We would be delighted to be selected as the partner of choice to work with Minerven and MIBAM to explore a

joint venture that will benefit both the Venezuelan people and our shareholders and we are excited about the future opportunities

that this type of collaboration may present for our shareholders.?

 

Summary of Hecla?s Venezuelan Reserves, Resources and Exploration

Isidora Mine Reserves as of December 31, 2007

Reserves

Tonnes (t)

Grade (g/t)

Gold (oz)

Proven

70,298

37.20

84,029

Probable

109,149

28.80

101,056

Total Reserves

179,447

32.10

185,085

Isidora Mine Resources as of December 31, 2007

Resources

Tonnes (t)

Grade (g/t)

Gold (oz)

Measured

158,135

28.97

147,265

Indicated

443,512

17.36

247,574

Total Resources

601,647

20.41

394,839

Note ? Mineral resources are inclusive of mineral reserves.

Isidora Mine Inferred Resources as of December 31, 2007

Inferred

Tonnes (t)

Grade (g/t)

Gold (oz)

Inferred

119,455

13.60

52,235

Total

119,455

13.60

52,235

 

The resource and reserve estimates at the Isidora Mine were previously reported by Hecla as part of their SEC 10-K filing for 2007. 

Rusoro has commissioned an NI 43-101 technical report to be prepared to confirm these as current and CIM compliant mineral resource

and reserve estimates.  The report is expected to be completed in the next 45 days.

 

Twin Shears, also situated on the Block B concession, is a potential mineral deposit between 0.7 to 1.3 Mt and an average grade between

10 to 13 g/t Au.  A resource estimate is currently underway and the results are expected to be reported as an NI 43-101 compliant resource

within 45 days.  Until the estimate is available the disclosure of a potential mineral deposit requires the statement that the potential quantity

and grade must be considered conceptual in nature, and that there has been insufficient exploration to define a mineral resource and

that it is uncertain if further exploration will result in the target being delineated as a mineral resource.

 

The interpretation of the Twin Shears potential mineral deposit 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.  

 

Under the terms of the definitive stock purchase agreement signed today, Rusoro will acquire all of Hecla?s Venezuelan assets for US$20 million

in cash and 4,273,504 (US$5 million worth of) Rusoro common shares.

 

Company President George Salamis stated that, "The successful completion of this transaction will dramatically expand and accelerate Rusoro?s

production growth profile and offers an excellent opportunity to fast track production at the SREP and surrounding deposits, while positioning

Rusoro as an intermediate gold producer with a strong platform for further growth. In addition, we view the exploration potential for further

gold discoveries on these concessions as excellent.? 

 

Advisors

Rusoro's financial advisor is Endeavour Financial International Corporation and its legal advisors are Anfield Sujir Kennedy & Durno in Canada,

Gersten Savage LP in the United States and Figueiras & Annicchiarico in Venezuela.

 

Qualified Person:  Mr. Gregory Smith, P.Geo, the Vice-President Exploration of the Company, is the Qualified Person as defined by National

Instrument 43-101, and is responsible for the accuracy of the technical information in this news release.

 

ON BEHALF OF THE BOARD

?Vladimir Agapov?

Vladimir Agapov, Chairman

CONTACT INFORMATION

George Salamis, President
Tel: 604-632-4044         Fax: 604-632-4045
Toll Free:  1-800-668-0091
Symbol: TSX-V: RML     Email: info@rusoro.com
Website: www.rusoro.com

Forward-looking statements: This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and as a result,

 are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive

and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company?s capability to

execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking

statements within the meaning of the Private Securities Legislation Reform Act of 1995.

                  

                                    The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release

 

Data and Statistics for these countries : Canada | Venezuela | All
Gold and Silver Prices for these countries : Canada | Venezuela | All

Rusoro Mining

PRODUCER
CODE : RML.V
ISIN : CA7822271028
CUSIP : 782227 10 2
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Rusoro Mining is a gold producing company based in Canada.

Its main assets in production are LA CAMORRA MILL, CHOCO 10 MINE and BLOCK B (ISIDORA ET AL) in Venezuela, its main assets in development are ISIDORA, SAN RAFAEL/EL PLACER and INCREDIBLE 6 in Venezuela and its main exploration properties are TRINIDAD, YURUAN, TWIN SHEAR, EMILIA MILL, CEIBA and VALLE HONDO in Venezuela.

Rusoro Mining is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 38.1 millions as of today (US$ 30.5 millions, € 26.7 millions).

Its stock quote reached its highest recent level on December 01, 2006 at CA$ 4.19, and its lowest recent point on November 28, 2014 at CA$ 0.01.

Rusoro Mining has 544 770 048 shares outstanding.

Your feedback is appreciated, please leave a comment or rate this article.
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In the News and Medias of Rusoro Mining
1/9/2009featured in National Post and Reuters articles
6/27/2000Hecla's La Camorra Mine Producing At Record Rates
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1/8/2008Appoints new COO
9/27/2007Appoints Omar Salas as CFO
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1/14/2009(Choco 10 Mine)Reports Record Gold Production and Record Low Cash Costs fo...
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9/6/2008(Isidora)Completes Landmark Agreements with Venezuelan Government to ...
8/7/2008(Isidora) Report Filed for Isidora and Twin Shear Projects Acquired F...
5/9/2008(Choco 10 Mine)Scoping/Feasibility Studies Awarded
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11/21/2007(Choco 10 Mine)2007 Technical report
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5/23/2007Numerous High Grade Intercepts
4/30/2007In-Fill Diamond Drilling Confirms Continuity of High Grade G...
Corporate news of Rusoro Mining
6/25/2015Rusoro Provides Update On Status Of International Arbitratio...
1/23/2014Adopts Advance Notice Policy
1/23/2014Adopts Advance Notice Policy
9/22/2011NR - Gold Law Update
6/16/2011NR
6/14/2011Reports on its Loan Repayment Status
6/22/2010Makes Second Payment of Restructured Secured Exchangeable Lo...
6/11/2010Loan Restructuring Closes
4/15/2010SREP Results
1/12/2010Positive Change in Exchange Rate Policy
11/19/2009Purchases Portion of loan
9/25/2009Aims to be Producing 540,000 Ounces of Gold Per Year By 2012
8/25/2009Q2 Record Production and Low Cash Costs
7/20/2009Initiates Major Engineering Studies at Choco 10 and San Rafa...
6/2/2009reports net income of $0.5 million for Q1 2009 and record pr...
6/1/2009Reports Positive Q1 and Record Production
5/19/2009Preliminary Assessment for Choco 10 Expansion
5/19/2009Reinhard Updates Rusoro Mining
5/19/2009Preliminary Assessment: Production Expansion of Choco 10
3/2/2009Midas Letter interviews Rusoro President George Salamis
2/25/2009Winston highlights Rusoro's rapid growth and low cash costs
2/24/2009Reports Record Gold Production and Cash Costs for January 20...
2/10/2009Withdraws Offer for Gold ReserveThread-Topic: Rusoro Withdra...
2/9/2009OSC SETS HEARING DATE TO CONSIDER CEASE TRADE OF GOLD RESERV...
1/28/2009insiders buying, growing production & positive cash flow
2/2/2009 Applies to Terminate GRZ Poison PillThread-Topic: Ruoro NR ...
1/21/2009featured in 'Business in Vancouver' magazine
1/20/2009Extends Expiry Date of Gold Reserve takeover BidThread-Topic...
1/14/2009Record Production/Cash Costs Q4 2008Thread-Topic: Rusoro NR ...
1/15/2009Reuters covers Rusoro Mining
1/13/2009Blogger interviews George Salamis, President of Rusoro Minin...
1/9/2009Reinhard reviews Rusoro’s takeover bid for Gold Reserve
1/5/2009Responds to Gold Reserve's Directors' Circular.Thread-Topic:...
1/5/2009Responds to Gold Reserve=E2??s Directors=E2?? Circular and O...
12/30/2008Entrenched Gold Reserve Management Continues to Attempt to D...
12/22/2008Mails Bid Documents to Gold Reserve Shareholders; Amends Fil...
12/19/2008Two Rusoro Mining clips from today's BNN Commodities Report
12/19/2008to Defend Against GRZ Attempt to Disenfranchise Own Sharehol...
12/19/2008TO DEFEND AGAINST GOLD RESERVE?S ATTEMPTS TO DISENFRANCHISE ...
12/15/2008LAUNCHES TAKE-OVER BID FOR GOLD RESERVEThread-Topic: RUSORO ...
12/17/2008The Offer From Rusoro Could Be The Best Christmas Present Sh...
12/16/2008FULLY COMMITTED TO BID FOR GOLD RESERVEThread-Topic: RUSORO ...
11/3/2008Expands Resources and Increases Grade at SREPThread-Topic: R...
9/16/2008? Annual General Meeting Results
9/9/2008advances in Venezuela says MineWeb.com
9/5/2008Signs Landmark Agreements with GovernmentThread-Topic: Rusor...
8/28/2008Responds to Gold Reserve News Release
7/10/2008Partners With Venezuelan Govt. - Hecla Assets Acquisition Cl...
7/9/2008drills 39.1 g/t Au over 5.7 m at Yuruan projectThread-Topic:...
6/20/2008NR - Hecla Venezuelan Assets AcquisitionThread-Topic: Rusoro...
5/1/2008CONFIRMS GOOD STANDING WITH GOVERNMENT AGENCIES IN VENEZUELA
4/23/2008Positive Meetings With Mines Minister
12/3/2007Choco 10 Acquisition Closes
11/26/2007 Drilling Starts at Valle Hondo
11/15/2007DRILLS 37m of 9.34g/t Au AT INCREIBLE 6 ALL MAIN GOLD ZONES ...
10/12/2007RAISES $210 MILLION FOR ACQUISITION OF GOLD FIELDS VENEZUELA...
10/12/2007to Acquire Gold Fields’ Venezuelan Assets to become Immediat...
9/11/2007Management Additions at AGM
4/19/2007Positive Results Continue at Increible 6 Gold Project, Boliv...
3/22/2007News reslease
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