Rusoro Mining News
| ||December 10, 2007|
Rusoro Gold Production Update: Choco 10 Mine
Vancouver, Canada -- Rusoro Mining Ltd. is pleased to provide an operational update on its newly acquired Choco 10 gold mine, situated in Bolivar State, Venezuela. The acquisition closed on November 29th 2007 and it has placed the company solidly as an advanced Junior Gold Producer.
The combination of Rusoro's projects and the Choco 10 mine gives the company a strong production base and expanding resources.
The combined NI 43-101 compliant reserve and resources numbers were detailed previously in the company's news release dated October 11th, 2007. Choco 10 proven and probable reserves total 15.4 Mt grading 3.4 g/t Au for 1.66 M oz, the combined measured and indicated resource (including reserves) for all projects is 84.0 Mt grading 2.5 g/t Au containing 6.63 M oz, and the total inferred resource is 108.2 Mt grading 1.8 g/t Au containing 6.22 M oz of gold.
The Choco 10 mine achieved record production in October 2007, with 10,157 produced for the month. This represents the first time that the Choco 10 mine has produced in excess of 10,000 oz of gold in a month since the inception of commercial production in 2005. Production in November 2007 reached 7,952 oz Au for the month, a level that is also significantly higher than almost all of the previous months of production at Choco 10. The Company is very pleased with these numbers as all gold production from the date of the original agreement, October 11, 2007, is credited to Rusoro's account.
Gold production in December is also expected to remain at these higher levels. Further guidance regarding forecasted revenues and costs from gold production will be provided in 2008, in Rusoro's year-end financial statement.
Rusoro's management is reviewing alternatives designed to sustain gold production at the 8,000 oz to 10,000 oz per month range. These studies will review alternatives relating to the existing haulage fleet at the mine, possible enhancements to the mill and gold recoveries in addition to other operational enhancements. The Company will provide guidance on this new strategy, in early 2008.
Water Issues Resolved
The Company is pleased to announce that previous issues regarding the supply of water to the mine site, and the lack of water required to support the milling operation, have been resolved. Pro-active measures adopted by the mine's previous owners, Gold Fields Ltd, during the latter half of 2007, have resulted in a significant improvement to the water supply situation at the mine. Mine management are confident that ample water supplies are now available for the mine to sustain mill production at levels of 7,500 t/d or greater. The current Choco 10 plant design capacity is 5,800 t/d.
Labour and Small Miner Issues Resolved
The Company is pleased to announce that a collective agreement has been reached with the Choco 10 mine site labour unions. The new agreement calls for wage increases, related to inflationary adjustments, in addition to certain production related incentives. This issue, previously an impediment to higher gold production level, has now been removed.
The Company is also pleased to announce that a settlement agreement has been reached with the Coacia Small Miners collective, relating to specific areas of Choco 10. This issue, which was also previously an impediment to higher gold production, has now been removed.
George Salamis, Rusoro's President, reports: "We are pleased that a number of these past impediments to production have been resolved. In addition, we recognize that a number of these enhancements regarding recent record gold production levels, water availability and labour related issues, have come as a result of measures taken by mine management and Gold Fields, during the latter half of 2007."
Andre Agapov, CEO, adds "We expect this pro-active spirit of enhancing the operational performance at Choco 10 will continue into 2008 and beyond, being driven by our Venezuelan-experienced management team."
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.
- Record gold production levels achieved at the recently acquired Choco 10 mine in Venezuela. 10,157 ounces were produced in October, 2007 and 7,952 ounces in November, 2007
- The previous water supply, labour, and small miner issues at Choco 10 are now resolved
- A detailed operational plan to support current sustainable gold production levels and ultimately increase them, will be announced in early 2008
ON BEHALF OF THE BOARD
Vladimir Agapov, Chairman
The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.
You can view the Next News Releases item: Mon Jan 7, 2008, Rusoro Mining Ltd. Appoints Corey Allen as COO
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