VANCOUVER, BRITISH COLUMBIA (TSX VENTURE: RML) is pleased to
report its financial results for the quarter ended March 31, 2008.
The Company's Q1 consolidated financial statements and management's
discussion and analysis (MD&A) for the quarter ended March 31,
2008 have been filed on SEDAR (www.sedar.com).
The first quarter of 2008 marked the first full quarter of
reporting since the Company acquired all the assets and liabilities
of Gold Fields Netherlands Services BV, ("Gold Fields"), which
included the Choco 10 operating mine. The completion of this
transaction on November 30, 2007 also marked the Company's
transition from being an exploration company to being a gold
producer.
All amounts set out in the Company's financial statements and
MD&A are unaudited and in United States dollars, unless
otherwise stated.
Q1 2008 Highlights
The following are the highlights for the quarter ended March 31,
2008 and related information. For detailed information regarding
Rusoro's Q1 2008 financial information, please refer to the
Financials Statements and the MD&A which have been filed on
SEDAR at www.sedar.com and can be found on the Company's website at
www.rusoro.com.
Financial:
- The first quarter of 2008 marked Rusoro's first full quarter
of reporting from the Choco 10 mine in El Callao. Rusoro took over
as the mine operator on Oct 11, 2007 and assumed full ownership of
the mine on November 30, 2007.
- The Company recorded its first full quarter of revenues as a
gold producer of $11.7 million.
Operational
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Q4 2007, ending Q1 2008, ending
Choco 10 Mine Dec 31st 2007 March 31st, 2008
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Ore Processed/tonnes milled 563,355 616,664
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Average tonnes milled per day 6,943 7,250
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Average gold grade (g/t) 1,67 1,41
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Average Gold Recovery 83.04% 86.58%
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Gold Ounces Produced (i)27,790 25,040
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(i) "Rusoro assumed management responsibility under the terms of the
acquisition for the Choco 10 mine on October 11, 2007 and became the
legal owner on Nov 30, 2007. The ounces of gold produced in the table
above for Q4 2007 includes 18,119 Au/oz produced during the period
Oct 11, 2007 and Nov 30, 2007 while the mine was under Rusoro's
control."
- Choco 10 Mine produced 25,040 ounces of gold at an average
cash operating cost of $498 per ounce of gold. Under the previous
operator for the same period (Q1) in 2007 the mine produced 8,221
ounces of gold at an average cash operating cost of $748/oz. Q1
2008 showed an increase in production of 205% and a reduction in
operating cash costs of $250/oz or 33.4% compared to the same
period last year.
- Permitting for the development and mining of oxide ore from
the Increible 6 to be processed at the Choco 10 mill is well
underway. Preliminary mine design has been completed.
- Scoping and Feasibility studies for the planned production
expansion at the Choco 10 Mine were awarded to Micon International
Ltd. and work on the ground has been initiated.
- Capital expenditures of $25 million on a new mobile mine fleet
and plant equipment were initiated during the quarter. Some delays
have been encountered in the importation of this new equipment,
however delivery and phasing in of mobile fleet is expected to
occur throughout Q2 2008.
- Mine development at the SREP gold deposit through the
development of a 1.8 km ramp to access the ore bodies at 200m depth
continues and is scheduled for completion in Q4 2008, though minor
delays have occurred due to seasonal rains.
Exploration:
- Resource and reserve in-fill drilling, in addition to
geotechnical drilling, is being carried out in the Choco 10 Mine
lease areas. Highlights of this drilling include; from the Coacia
Area, 18.63g/t Au over 12m, 13.74g/t Au over 14m, 3.86g/t Au over
39m and from the VBK Area, 7.73g/t Au over 13.2m and 9.39g/t Au
over 9.2m.
- Significant gold discoveries recently made at the Valle Hondo,
Increible 14 and Yuruan projects.
- Recent results for all of these projects were released in a
news release on May 22, 2008.
Rusoro is very pleased with the progress being made in all
facets of its growth strategy. Operations continue to improve as
the processes at the plant are optimized, expansion continues to
move forward at both the Choco and Emilia mills and the exploration
programs continue to prove the world class geology of Venezuela for
the discovery of gold.
Rusoro's President George Salamis reports: "We are very pleased
that we have been able to demonstrate that our turn-around strategy
for the Choco 10 Mine is proving to be successful. Going forward we
are confident that we can continue to improve significantly on our
operational numbers and have in fact had a record month in May 2008
for total tonnes of ore processed in the mill at 226,660 tonnes.
The execution of our Mine optimization goals, in addition to this
recent ore processing record, is a testament to the hard work and
dedication of our Mine Management team and employees at the Choco
10 Mine."
Diamond drilling was conducted by Perforaciones Mayortec (Major
Drilling), Technodrilling and Core Biel Drilling of Puerto Ordaz,
Venezuela. RC drilling was completed by AK Drilling of Peru. All
drilling and drill sampling have been completed using industry
standard practices. All drill core is described in detail and
photographed and one half of the core remains for inspection and
reference.
Sample analyses have been conducted at Acme Analytical, Actlabs,
SGS labs and Triad Labs located in Guasipati, Tumeremo, El Dorado
and El Callao, Bolivar State Venezuela. All sample analyses were
completed using industry standard practices and standard samples,
blanks and duplicate check samples were randomly inserted into the
sample stream to ensure quality control. A review of the QA/QC
results shows no significant bias and all results are considered
highly reliable. Sample rejects for all drill samples are stored in
Rusoro's secure facilities in Tumeremo, Venezuela, and will
continue to be available for any further testing which may be
required. All QA/QC is completed under the direction of G.F. Smith,
P.Geo.
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
this news release.
About Rusoro
Rusoro Mining is an advanced junior gold producer with a large
land position in the prolific Bolivar State region of Venezuela.
The Company's current NI 43-101 compliant resource estimation
stands at 6.630 M/oz gold in the M & I category (84.0 M/t @ 2.5
g/t) and 6.220 M/oz gold in the inferred category (108.2 Mt @ 1.8
g/t). The Company expects to produce approximately 120,000 Au
ounces in 2008 and expand its annualized production rate to over
150,000 oz/yr by year end. Rusoro will drill up to 300,000 meters
in 2008 to expand and upgrade its gold ounces for projected
production expansion at both the Choco 10 Mine in El Callao and the
Emilia Mine in El Dorado.
ON BEHALF OF THE BOARD
George Salamis, President
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.
Contacts: Rusoro Mining Limited George Salamis President (604)
632-4044 or Toll Free: 1-800-668-0091 (604) 632-4045 (FAX) Email:
info@rusoro.com Website: www.rusoro.com
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