Rusoro Mining Ltd.
Rusoro Mining Ltd.

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Rusoro Mining Ltd. Rusoro Mining Ltd.

Rusoro Mining News


 November 30, 2009
Gold Production Continues to Meet Guidance For 2009 with record low cash cost in Q3 of US$288 per ounce

 Rusoro Mining Ltd. ("Rusoro" or "the Company"), is pleased to report its financial results for the three- month period ended September 30, 2009 ("Q3 2009"). The Company's Q3 2009 consolidated financial statements and management's discussion and analysis ("MD&A") have been filed on SEDAR (www.sedar.com).

All amounts set out in this news release are unaudited and in United States Dollars unless otherwise stated.

Q3 2009 Highlights

  • Cash cost per ounce Au sold a record low of $288 per oz (Q3 2008: $805).

  • Production of 35,376 ounces of gold (Q3 2008: 22,082).

  • Initiated a feasibility study (to advance the positive Preliminary Assessment completed in Q2), to evaluate the potential for gold production expansion of the Choco Mine operation to a production rate of 558k oz Au/yr, which will source gold resources and reserves from the Choco Mine and the near-by Increible 6 gold deposit.

  • Drilling at Isidora continues to expand high grade gold zones for future development.

  • Advanced construction of the Alvarez underground ramp which will provide access to the main mineralized areas in the contiguous San Rafael and El Placer concessions ("SREP"). Construction is on track towards the goal of intercepting and test sampling the main mineralized zone in Q1 2010.

  • Ended the quarter with $57 million in cash, cash equivalents and short-term investments with 35,374 ounces of gold warehoused and secured in country (45,356 ounces at Nov. 25, 2009).
Key Operating Statistics for the Choco Mine and Isidora Mine:

The data below is for 100% of the Choco Mine (open-pit mining operation) and 50% of the Isidora Mine (underground mining operation).

 

3 Months Ended September 30,

3 Months Ended September 30,

 

2009

2008

 

Choco

Isidora

Total

Choco

Isidora

Total

 

 

 

 

 

 

 

Ore tonnes mined (‘000 t)

666

9

675

569

n/a

569

Ore tonnes milled (‘000 t)

498

9

507

567

n/a

567

 

 

 

 

 

 

 

Average grade (g/t)

1.87

25.83

2.30

1.92

n/a

1.92

Average recovery rate (%)

93%

90%

93%

87%

n/a

87%

 

 

 

 

 

 

 

Gold produced (ounces)

29,456

5,920

35,376

22,082

n/a

22,082

 

 

 

 

 

 

 

Gold sold (ounces)

32,502

6,019

38,521

21,755

n/a

21,755

 

 

 

 

 

 

 

Total mining operating expenses  $(000)

9,036

2,372

11,408

21,082

n/a

21,082

  1. asset retirement obligations accretion $(000)

(97)

(67)

(164)

(292)

n/a

(292)

  1. impairment of inventories $(000)

-

-

-

(3,274)

n/a

(3,274)

  1. fair value differential of inventory acquired $(000)(1)

-

(156)

(156)

-

n/a

-

Total cash costs $(000)(2)

8,939

2,149

11,088

17,516

n/a

17,516

Total cash costs per ounce sold $(3)

275

357

288

805

n/a

805

 

Average spot gold price $

 

n/a

 

n/a

 

934

 

n/a

 

n/a

 

825

Average realized gold price $(4)

n/a

n/a

686

n/a

n/a

676

Discount to spot gold price(4)

n/a

n/a

27%

n/a

n/a

18%

 

 

 

 

 

 

 

Official exchange rate (BsF to US Dollar)

n/a

n/a

2.15

n/a

n/a

2.15

Average implicit exchange rate (BsF to US Dollar)

n/a

n/a

6.47

n/a

n/a

3.75

 

 

 

 

 

 

 



(1) In calculating cash costs per ounce sold the Company has excluded the difference between the book value and fair value of inventory acquired at the date of acquisition of the 50% interest in the Isidora Mine.

(2) Total cash costs used in the calculation of cash costs per ounce is calculated as mining operating expenses from the consolidated statement of operations excluding accretion expense related to the asset retirement obligations, impairment of inventories and expense of the fair value differential between the book value and fair value of inventory acquired at the date of acquisition of the 50% interest in the Isidora Mine.

(3) Cash costs per ounce sold is a non-GAAP measure. Total cash costs per ounce sold as shown above is calculated by dividing the total cash costs by the gold ounces sold during the period. Cash costs per ounce sold includes all expenditures incurred at the mine site such as mining, processing, administration, royalties and production taxes but excludes reclamation, capital and exploration expenditures, adjustment to foreign currency conversion rate and the fair value differential between the book value and fair value of inventory acquired at the date of acquisition of the 50% interest in the Isidora Mine.

(4) Average realized gold price is impacted by a discount to spot price of gold and by the timing of gold sales. The Company did not conduct gold sales in August or September of 2009. As the Company did not conduct gold sales in August or September of 2009, the average spot gold price reported for the three months ended September 30, 2009 is the July 2009 average spot gold price.

Karin Vein

M & S Veins

Hole-ID

From

To

Au   (g/t)

TW (m)*

Hole-ID

From

To

Au   (g/t)

TW (m)*

HCH-273

370.50

372.57

3.37

1.69

HCH-271

403.56

405.48

11.51

1.58

HCH-275b

372.47

374.16

8.84

1.77

HCH-274

397.80

398.23

5.28

0.37

HCH-277

331.70

335.63

14.61

4.41

HCH-276

331.70

335.63

7.70

1.10

HCH-277

353.35

354.48

9.67

1.01

HCH-278

426.66

428.10

41.81

1.19

HCH-279

386.00

386.64

18.67

0.59

HCH-281

418.54

419.36

8.38

0.68

HCH-279

389.15

389.66

7.25

0.47

HCH-283

402.50

404.77

19.62

1.93

HCH-280

356.49

357.15

3.94

0.65

HCH-285

427.13

429.31

11.97

1.73

HCH-282

357.03

357.30

18.93

0.27

HCH-285

430.88

431.70

10.07

0.65

HCH-282

358.87

359.65

13.88

0.77

HCH-288a

429.80

430.50

12.18

0.48

HCH-284

470.30

471.03

6.5

0.61

HCH-288a

432.32

433.33

5.09

0.69

HCH-284

477.96

479.78

3.96

1.52

HCH-289

389.00

389.30

10.91

0.23


Note: TW is True Width in metres.

Drilling was successful in confirming the continuity along strike and to depth of the main mineralized zones (M and S Veins) including immediately adjacent and below the existing mine workings. Additionally the drilling extended along the central structure of the Isidora gold deposit approximately 400 metres to the west (F Vein area) and 350 metres to the east (Karin Vein -- below the old Chile Mine).

Diamond drilling was conducted by Versacore and Perforaciones Tecnodrill of Puerto Ordaz, Venezuela. 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 SGS labs, Actlabs and Triad Labs located in El Dorado, Tumeremo and El Callao, Venezuela. All sample analyses were completed using industry standard fire assay practices. A detailed program of quality assurance / quality control (QA/QC) includes standard samples, blanks and duplicate check samples which are randomly inserted into the sample stream. Additionally check assays are completed on pulps and sample rejects at the primary lab as well as on duplicate pulps at a second lab. 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, Vice-President, Exploration of the Company. A technical report on the Isidora Mine titled "Technical Report on the Mining and Processing Operations of Hecla Mining Company, Estado Bolivar, Venezuela," dated August 1, 2008 was previously filed by the Company and is available on SEDAR at www.sedar.com."

San Rafael/El Placer (SREP) Development Project Q3

During Q3 2009 the Company continued to make progress on the pre-feasibility study initiated in Q2 at SREP. As well the Alvarez Ramp was advanced to within 500m of the main mineralized zones at the project and is on course for completion in Q1 2010. The Pre-feasibility study is being conducted by Whillans Mine Studies Ltd. The engineering consulting firm has previously advised the company concerning the development of the Alvarez Ramp. Based on the amount of data already compiled and the engineers intimate and ongoing knowledge of the project the Company expects that the study can be completed in early 2010. The SREP Project currently has National Instrument 43-101 ("NI 43-101") compliant resources of 399,000 oz Au indicated (639,000t @ 19.41g/t) and 523,500 oz Au Inferred (703,000t @ 23.16g/t) as detailed in a report titled "Technical Report on the San Rafael-El Placer and Days Vein Deposits, Bolivar State, Venezuela" dated October 2, 2008.

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 technical and scientific information within this news release.

Cautionary Non-GAAP Measures

Total cash costs per ounce sold is a non-GAAP measure. The Company believes that, in addition to conventional measures, prepared in accordance with GAAP, certain investors use the cash costs per ounce data to evaluate the Company's performance and ability to generate cash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP as it does not have any standardized meaning prescribed by GAAP. Data used in the calculation of total cash costs per ounce may not conform to other similarly titled measures provided by other precious metals companies.

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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