Rusoro Mining Ltd. (TSX VENTURE: RML) 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.
Link to Charts for Production and Cash Costs Comparisons and
2009 Production Guidance:
http://media3.marketwire.com/docs/rml223charts.pdf.
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, 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 Ltd. 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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