AN EMERGING MID-TIER GOLD 1 PRODUCER
Forward-looking Statements This presentation may contain forward-looking statements relating to the future performance of Rusoro Mining Ltd. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties, and actual results may differ materially. These risks and uncertainties are detailed from time to time in the Company’s filings with the appropriate securities commissions. 2
12 Month Highlights • Production: Exploration company to junior gold producer in 12 months • M&A: Acquired two operating gold mines for average of $73 per ounce • Organic Growth: increased gold resources by 20% in 12 months; total resources now stand at 7.10 Moz Au M&I and 7.07 Moz Au Inferred • Focus on Costs: Significantly lowered cash costs at Choco 10 – Continued improvement attainable • Development Projects: Alvarez ramp advanced by 400m, commercial production Q1 2010 • Maintained significant exploration program: multiple drill rigs active over the last 12 months • First to partner with the Venezuelan Government with a Mixed Enterprise Joint Venture Company Rusoro has been very proactive in Venezuela… 3
The Current Situation In Venezuela s e Chinese Investments i n t s a a p Cuban Medical Care E Oil to Central America m a - n d o i i c h M C s o a s o t g m t s n r l d i a a O o i s n o a s G u i s R s u R From Time Magazine: Making New Friends: “After a face-to-face meeting, Venezuelan President Hugo Chavez and Russian President Dmitri Medvedev said their countries would work more closely together on energy and foreign policy” From Reuters: Russia trumpets Venezuela ties "Venezuela is now the most important partner of the Russian Federation," Medvedev said after his talks with Chavez at a state residence outside Moscow. 4
The Current Situation In Venezuela Rusoro Chairman Vladimir Agapov with President Hugo Chavez • RML proven to be able to operate in the current political environment • Government: supportive of RML, named “Partner of Choice”, with the formation of Isidora/Camorra “mixed enterprise” company. Actively reviewing other partnering strategies i.e.. mining projects, custom milling • Venezuela and Russia continue to strengthen political and economic ties, 5 this is very positive for Rusoro Mining
RML Capital Structure Share Capital (millions): Basic: 391.5 Fully Diluted : 535.6 16% 24% Fully Diluted $ : $500 mil Goldfields 22% Rusoro Mgmt & Insiders 38% Institutional Individual Investors On conversion of debt Peter Hambro will own 4% of RML * • Insiders, primarily the Agapov family, account for more than 22% of the shares of Rusoro • Gold Fields remain a significant shareholder • Peter Hambro Mining investment in RML seen as a significant milestone, with excellent Russian synergies between the two Companies 6
Resources and Reserves Total NI43-101 Resources M&I 87 Mt @ 2.6g/t – 7,099,000 oz/Au Inferred 111.4 Mt @ 1.9g/t – 7,072,000 oz/Au Drilling 3437 Holes / 501,000m 30 ounces per metre drilled CHOCO 10 NI43-101 Resources INCREIBLE 6 NI43-101 Resources Measured 2.6 Mt @ 2.9g/t – 243,000 oz/Au Indicated 23.5 Mt @ 2.11g/t – 1,590,000 oz/Au Indicated 56.3 Mt @ 2.5g/t – 4,440,000 oz/Au Inferred 17.5 Mt @ 1.95g/t – 1,100,000 oz/Au Inferred 42.9 Mt @ 2.2g/t – 3,020,000 oz/Au Drilling Drilling 499 Holes / 83,000m 2058 Holes / 224,000m SREP NI43-101 Resources ISIDORA NI43-101 Resources Indicated 639 Kt @ 19.4g/t – 399,000 oz/Au P&P 179,447 Mt @ 32.10g/t – 185,085 oz/Au Inferred 703 Kt @ 23.2g/t – 524,000 oz/Au M&I 470,000 Mt @ 20.41g/t – 334,000 oz/Au Inferred 99,000 Mt @ 14.13g/t – 45,000 oz/Au Current UG Development Alvarez Ramp = 400m Drilling Diamond Drilling 247 Holes / 48,800m 568 holes / 151,000m 7 7
Peer Review/Comps 11/30/2008 Junior Producers Total Oz Au (Resources - ,000) 16,000 14,000 12,000 10,000 8,000 Median 4,837,000 oz 6,000 4,000 2,000 0 KGI EET AGI JAG SMF ARZ RBI HRG IMZ GAM RML Three times the median, well ahead of peers…. 8
Peer Review/Comps Junior Producers 11/30/2008 Enterprise Value Per Oz Au (Resources) $250 $200 $150 $100 Median $ 64/oz $50 $0 HRG RML IMZ EET JAG SMF KGI ARZ AGI RBI GAM Undervalued regardless of the region of operations…. 9
Production Highlights • Production Forecast for Q4: 30,000 oz Au • Production Forecast for 2009: 165k oz Au • Production from Increible 6 to commence in 1 st half of 2009 • Commercial Production at SREP in Q1 2010 • Other sources of ore and tailings being examined for custom milling in the El Callao and El Dorado districts 10
Production And Development Focus El Callao District Production and Development: Choco 10, Isidora & Increible 6 Cuyuni/Km 88 El Dorado District Districts Development: Exploration: SREP Deposits, Valle Hondo and Alvarez Ramp, Yuruan Projects & Emilia 11
Choco 10 • Vastly improved mill performance and through-put achieved. • Milling record of 231,593 tonnes in July 2008 • Capital Expenditures: Over $20M in new mining equipment spent in the last 6 months • New haulage contract structured with primary contractor, will reduce mining costs • Collective agreement with the unions established – Workers and Ministry pleased • Issues from previous operators with small miners addressed • Previous water issues resolved and new waste dump fully permitted 12 10,000 oz per month target run-rate well within range
Choco 10 / Increible 6 3D Models Choco 10 3D Model Increible 6 3D Model 13 13
Development Highlights Increible 6 • Engineering completed for roads, waste dumps and pit designs • New road construction connecting Increible 6 to Choco 10 underway • Mine permitting nearing completion - Reserve and condemnation drilling complete • Ore to be trucked to Choco 10, 8km away, for processing • Gold production from surface oxides at Increible 6 during the 1st half of 2009 14
Scoping and Feasibility: Choco 10 – Increible 6 • Previous scoping study done by Gold Fields � demonstrated positive economics on � � production of 350,000 oz/yr operation at Choco 10, using a gold price of $550/oz • Rusoro/MICON evaluating production ������ scenarios well in excess of 350,000 oz/yr, using higher through-put rates, including feed from neighboring Isidora & Increible 6 • Key Study Factors: ������ 1) Gold resources not limiting - large and accessible 2) Limits on water availability for expanded production 3) Power grid capacity 4) Tailings expansion capacity • Scoping study due for completion in Q4, 2008. Feasibility to be initiated in 2009 ���� �������� An opportunity to vault RML to Intermediate Producer Status…. 15
Mina Isidora: Our newest Gold Mine • Successfully recommenced underground production at Isidora after 3 month shut- down under previous ownership • Ore from underground is currently being processed at Choco 10, 6km away • Potential to lower cut-off grade from 16 g/t to 10 g/t due to shorter trucking distance (+100 km under Hecla ownership vs 6km to Choco 10) • Aggressive underground ore development underway • Underground exploration program planned, exploration potential is excellent 16
Mina Isidora 3D Model 17
Development Highlights SREP/Alvarez Ramp • Completed surface work and portal at the Alvarez Ramp • Over 200m of underground ramp advance through difficult saprolite into fresh rock • SREP mining permit received – Updated resource estimation completed • SREP will produce at annualized rate of 80,000 oz Au per year with commercial Production in Q1 2010 • Options to process SREP at Emilia, Camorra or Choco 10, study underway 18
Exploration Highlights • 2007: RML drilled 230,000 m • 1 st half of 2008: RML drilled 145,000 m on 8 projects • Current drilling focus: Choco 10 oxide and feasibility, Increible 6 upgrade and expansion, Valle Hondo and Yuruan Exploration • Updated Resource Estimates: 1) SREP – Completed Q4 2008 2) Inc 6 – 60,000 additional assays/500 holes – Update Q1, 2009 3) Choco 10 – updated global resource by Q2, 2009 19
Exploration – Increible 6 • Located in El Callao 8Km from Choco 10 • 2007/08 drilling increased previous resources 300% - Impressive organic growth • 500 holes not included in latest resource model, will be incorporated in updated estimate(Q1 2009) Recent results include ; • Drilling focused on upgrading and expanding current resources – Exploration potential remains high 20
Exploration –Valle Hondo • Located 40Km SE of the town of El Dorado VALLE HONDO NI43-101 Resources Indicated 3.5 Mt @ 0.92g/t – 103,000 oz/Au Inferred 47 Mt @ 0.89g/t – 1,344,000 oz/Au Diamond Drilling 114 holes / 13,000m • Several kilometre- scale targets including Apanao (4.5Km X 1.5Km) and Arenales ( 4.0Km X 2.5Km) • 50,000m drill program underway • Excellent potential to expand near surface gold zones and define the higher grade areas (up to 100g/t Au) • Scoping study to be updated 21
Recommend
More recommend
