Rusoro Mining

Published : February 24th, 2009

Reports Record Gold Production and Cash Costs for January 2009

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Rusoro Mining


Rusoro Reports Record Gold Production and Cash Costs for January 2009

Provides Operational Targets for 2009

February 23, 2009   
Trading Symbol (TSX-V): RML

Vancouver, Canada - Rusoro Mining Ltd. is pleased to report that gold production and cash costs remained strong at the Choco 10 Mill for the month of January 2009.  The Company is encouraged with the much improved performance at the Choco 10 mill over the past five months and looks forward to this operational trend continuing and to meeting its targets for 2009.  Production highlights for January 2009 and operational targets for 2009 include:

  • Group-wide, Rusoro produced 14,835 oz Au in January (a record), compared to the 14,261 oz Au produced in December 2008 and 38,868 oz Au produced for Q4 2008.  January 2009's production was up by 75% over the same month (January) 2008
  • Group-wide cash costs, on a combined basis, in January 2009 were US$315/oz (unaudited), down from December's all-time low of US$347/oz, or US$358/oz for Q4 2008 (unaudited).  Management believes there is further scope to reduce costs at all operations.
  • 2009 Gold Production Guidance - 170,000 to 190,000 oz, at sustained cash cost below US$400/oz
  • This positive momentum from increased production and decreased costs is expected to carry-on through 2009
  • Mine Development: Increible 6 development on track to begin production in H2, 2009.  SREP (San Rafael/El Placer) on schedule to begin commercial gold production in Q1, 2010.

Consolidated Production: Choco 10 Mill - 2006 (Previous Operator) to 2008 (Rusoro)

Consolidated Cash Costs: Choco 10 Mill - 2006 (Previous Operator) to 2008 (Rusoro)

Consolidated Production vs. 2009 Guidance

Unaudited Consolidated 2008 Full Year Performance
As stated in the press release of January 14, 2009, Q4 2008 operating results were very strong at Rusoro's Venezuelan gold mining operations.  The production challenges experienced by the Company while commissioning the upgraded operations during the first 3 quarters of 2008 were largely addressed heading into Q4.  Concurrent with the turnaround at the operations the Company has taken advantage of strengthening gold prices to launch an aggressive expansion program to leverage further the productivity gains realized to date.  The Company expects to complete a scoping study in Q2 2009 and a bankable feasibility for the Choco 10 mine and mill in 2010, to confirm the viability of an expansion to over 400,000 oz Au/yr.  With timely confirmation of the appropriate studies, the Company will target expansion completion for 2012.

Sustainability of Increased Production Levels and Low Cash Operating
At Choco 10 operations, Rusoro was able to demonstrate a strong increase in production in Q4 2008 (38,868 oz Au) over the preceding three quarters of 2008 and an impressive 40% increase over the same period of the previous year (Q4 2007).  During this period, the cash costs have dramatically improved, culminating in a record low cost for Q4 2008 (US$358/oz).  This trend has continued into 2009 with a monthly record amount of gold produced (14,835 oz Au) at a record low cash cost (US$315/oz) at the mill in January 2009.

The strong increase in production and the vast improvement in operating cash costs are the culmination of a number of initiatives which include improvements made to the haulage fleet availabilities, mill availabilities, modifications made to the primary mine haulage contract and optimization of the mine plan.  Key to these initiatives was the expanded ore development at both the Choco 10 and Isidora mines ensuring that the mill with have sufficient ore to process at capacity and in turn that the gold in circuit is maximized to further increase production - thus eliminating issues that plagued the operations through the first half of 2008.  The Company now has about two years of ore developed at each mine and will continue with an aggressive ore development program moving forward.

For these reasons, Rusoro's management believes that the current production profile is sustainable and that there are further improvements that can still be made to optimize operations. 

2009 Outlook: Consolidated Guidance
Based on the previously discussed increase in processing capacity and the on-going overall productivity improvements throughout our operations, the Company has provided updated guidance for 2009.

  • Gold production of 170,000 oz to 190,000 oz (53% improvement over 2008 and 170% over 2007)
  • Cash costs per gold ounce of US$310 to US$375 on a consolidated basis

SREP/Increible 6 Development Projects
At SREP, the surface work, boxcut and portal through the difficult saprolite into bedrock was completed during Q4 2008.  The Alvarez ramp, which is being constructed to access the main SREP ore bodies at about 200 m depth, has been further advanced, for a total access length of approximately 460 m. The company expects to complete the 1.5 km ramp in Q3 2009 and begin first stage production shortly thereafter with commercial production scheduled to begin in Q1 2010.  All mining permits are in place to affect mining at SREP and the mine will produce at an annualized rate of 120 k oz Au/yr.  An updated NI 43-101 resource estimate was completed in Q4 2008 and currently stands at 399 k oz Au indicated (639 kt @ 19.4 g/t) and 524 k oz Au inferred (703 kt @ 23.2 g/t).

At the Increible 6, the engineering has been completed for roads, waste dumps, and pit designs with new road construction connecting the Increible 6 to the Choco 10 mill underway.  Reserve and condemnation drilling was completed in Q4 2008 and the Company expects to initiate gold production from surface oxides during the second half of 2009 upon final permitting.  Ore will be trucked 8km to the Choco 10 mill for processing.  The current NI 43-101 resource estimation for the Increible 6 stands at 1.59 Moz Au indicated (23.5 Mt @ 2.11 g/t) and 1.1 Moz Au inferred (17.5 Mt @ 1.95 g/t).

Rusoro's President, George Salamis noted, "We are committed to ensuring the continuation of the positive operational trend of the past five months as we work to reach our targets for 2009.  We will continue with a number of initiatives that have been on-going and the Company believes that further improvements are attainable as we continue to streamline cash costs at the mines."

Rusoro CEO, Andre Agapov stated, "We are delighted that the operational results from Choco 10 continue to impress.  With our current operations continuing to strengthen and our plan to bring two brand new mining operations, Increible 6 and the SREP, on-stream over the next year we continue to execute our production growth strategy to the benefit of our shareholders."

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 scientific and technical aspects of this news release.

About Rusoro Mining

Rusoro is a junior gold producer with a large land position in the prolific Bolivar State region of Venezuela.  The Company operates the Choco 10 and Isidora Mines, processing the ore through the Choco 10 mill facility near the town of El Callao.  The Company produced over 100,000 oz Au in 2008 and is on schedule to have two additional mines (Increible 6 and SREP) in production by Q4 2009 and Q1 2010, respectively.
    "George Salamis"
George Salamis, President

George Salamis, President
Tel: 604-632-4044
Fax: 604-632-4045
Toll Free: 1-800-668-0091
Symbol: TSX-V: RML


Vanguard Shareholder Solutions
Tel: 604-608-0824
Toll Free: 1-866-591-0825

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.


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Rusoro Mining

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.

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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
Nominations of Rusoro Mining
1/8/2008Appoints new COO
9/27/2007Appoints Omar Salas as CFO
9/4/2007Appoints George Salamis as President
Financials of Rusoro Mining
6/30/2011Reports Q1 2011 Financial Results
8/29/2008Reports Q2 2008 Financial Results
Project news of Rusoro Mining
7/6/2010(Choco 10 Mine)Announces Updated Resource Estimate for the Choco 10 Deposit...
7/20/2009(Choco 10 Mine)Rusoro Mining Initiates Major Engineering Studies
1/14/2009(Choco 10 Mine)Reports Record Gold Production and Record Low Cash Costs fo...
12/19/2008(Choco 10 Mine)Reports Record Gold Production and Record Low Cash Costs at ...
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
1/23/2008Choco 10 Production/Permitting Update
12/10/2007(Choco 10 Mine)News Release - Choco 10 update
11/29/2007UPDATED 43-101 ACCEPTED FOR FILING RUSORO DRILLS 21m of 8.44...
11/21/2007(Choco 10 Mine)2007 Technical report
6/11/2007Intersects 37m of 9.34g/t Au and 21m of 4.72g/t Au in Separ...
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
6/14/2011Reports 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...
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...
12/17/2008The Offer From Rusoro Could Be The Best Christmas Present Sh...
11/3/2008Expands Resources and Increases Grade at SREPThread-Topic: R...
9/16/2008? Annual General Meeting Results
9/9/2008advances in Venezuela says
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...
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 ...
10/12/2007to 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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