Rusoro Mining Ltd.
Rusoro Mining Ltd.

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Rusoro Mining Ltd. Rusoro Mining Ltd.

Rusoro Mining News


 June 06, 2008
Rusoro Mining Reports Q1 2008 Financial Results

 Rusoro Mining Ltd. ("Rusoro" or the "Company"), 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

 

Chocó 10 Mine

Q4 2007, ending
Dec 31st  2007

 Q1 2008, ending
March 31st, 2008

 

 

 

Ore Processed/tonnes milled

563,355

616,664

Average tonnes milled per day

6,943

7,250

Average gold grade (g/t)

1,67

1,41

Average Gold Recovery

83.04%

86.58%

Gold Ounces Produced

**27,790

25,040

**"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"

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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