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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.
ON BEHALF OF THE BOARD
"George Salamis"
George Salamis, President
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
or
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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