Rusoro Mining News
| ||May 13, 2008|
Rusoro Mining Reports its 2007 Financial Results
| ||Rusoro Mining Ltd. ("Rusoro" or the "Company"), is pleased to report its financial results for the year ended December 31, 2007. The Company's audited consolidated financial statements and management's discussion and analysis (MD&A) for the year ended December 31, 2007 have been filed on SEDAR (www.sedar.com).|
In the fourth quarter of 2007 the Company acquired all the assets and liabilities of Gold Fields Netherlands Services BV, ("Gold Fields"), which included the Choco 10 operating mine. Gold Fields had previously reported their financial statements under International Accounting Standards. To comply with TSX-V reporting regulations the Company had to adjust the Gold Fields information so that it would conform to Canadian Accounting Standards, this major task took longer than anticipated and necessitated an extension to the deadline for the filing of the Company's annual financial statements for the year ended December 31, 2007. 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 audited and in United States dollars, unless otherwise stated.
The following is a synopsis of the year ended December 31, 2007 and related information. For detailed information regarding Rusoro's 2007 year-end, please refer to the Audited 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 .
- The acquisition from Gold Fields Intl was completed on November 30, 2007.
- The final quarter of 2007 marked Rusoro's transition from being an exploration company to being a gold producer.
- The Company had inventory of gold in bar-form, in process or stockpiled, with a cost value of $7.6 million as at December 31, 2007.
- The Company recorded its first revenues as a gold producer of $3.5million.
- Rusoro completed the acquisition of Mena Resources on March 5, 2007.
- Choco 10 Mine acquired in November 2007. The acquisition increased M & I gold ounces by 204% and inferred gold resources by 86%.
- Total resources reported at year end were, 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).
- In December 2007, Choco 10 Produced 9,671 ounces of gold at a cash operating cost of $503 per ounce of gold.
- Mine development at the SREP deposits was initiated in 2007 and is proceeding. The development of a 1.8 km ramp and the expansion of the Emilia mill are in-progress and an updated resource estimate for SREP is expected for the end of Q2, 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.
- In 2007 the Company drilled 208,000m predominately at the Increible 6 and SREP deposits. Drilling at Increible 6 increased gold ounces in the indicated category by more than 1.1 M/oz (increase of 266%) and more than 0.33 M/oz of gold in the inferred category (increase of 44%).
- 2007 drilling at the SREP deposits will be included in an updated 43-101 resource estimation due in Q2 2008.
- A significant exploration program for 2008 is ongoing and is focused on the Choco 10, Increible 6, SREP and Valle Hondo projects where excellent results continue.
- Significant gold discoveries recently made at the Increible 14 and Yuruan projects
- Recent results for all of these projects are currently being compiled for release.
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.
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."
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