Rusoro Mining Ltd. · TSXV:RML
Rusoro Mining — Investor Presentation (January 2011)
26 slides from Rusoro Mining's investor presentation, January 2011
Slide 1: Rusoro Mining January 2011
January, 2011 RML : TSX.V 1
Slide 2: Forward-looking Statements
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 mat
Slide 3: Rusoro Mining at a Glance
Rusoro Mining at a Glance PRODUCTION GUIDANCE : 110,000 oz Au 2010 >150,000 oz Au 2011 CASH COSTS : Targeting under US$500/oz when at full production 2011 GOLD SALES: Venezuelan policy adjusted to allow off shore gold sales for first time ever GROWTH : Preliminary Assessment shows robust economics a
Slide 4: Strong Political Ties between Russia and Venezuela
Strong Political Ties between Russia and Venezuela From Time Magazine: Sept. 2008 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
Slide 5: Current Situation For Rusoro In Venezuela
Current Situation For Rusoro In Venezuela RML proven ability to operate in the current political environment Government: supportive of RML, named “Partner of Choice”, with the formation of Isidora and Camorra “mixed enterprise” company. Rusoro Chairman Vladimir Agapov with President Hugo Chavez
Slide 6: RML Capital Structure
RML Capital Structure Share Capital (millions): Basic: 529.8 Market Cap : US $140 M Sym : RML - TSX Venture Exchange 24.1% Gold Fields 38.1% 26.4% Rusoro Mgmt & Insiders Institutional 13.5% Individual Investors On conversion of debt Lenders would own 10% of RML Insiders, primarily the Agapov fam
Slide 7: Operational Overview
Operational Overview Venezuelan Producer: Guidance of 110,000 oz Au at under $600/oz in 2010 Rusoro Operations: include the Choco 10 and Isidora mines processing ore through the Choco 10 Mill and the La Camorra Mill respectively Choco Expansion Feasibility Study Initiated: following up on posi
Slide 8: Achieving Targets and Goals
Achieving Targets and Goals Cash Cost Production Reduction Growth Production Achievements Production Cash Cost 100,000 $1,200 Previous Rusoro 90,000 Ownership Ownership $1,000 80,000 $922 70,000 Production (Ounces Au) $800 60,000 $634 US$/Ounce $740 $616 $596 50,000 $600 $592 40,000 $347 $322 $400 3
Slide 9: Consolidated Gold Production vs. Expansion Production Guidance
Consolidated Gold Production Consolidated Gold Production vs. Expansion Production Guidance 600,000 Gold Ounces 400,000 150,000 558,000 62,895 99,663 110,000 200,000 0 2007 2008 Actual 2009 Actual 2010 Actual 2014 PEA Guidance Guidance Previous Ownership Rusoro Ownership Past Production vs. Expansio
Slide 10: Undervalued Relative to Junior Producers
Undervalued Relative to Junior Producers: Superior Ounces at Lowest Entry Point 21,000 Total Gold Resource Ounces 17,500 18,000 Ounces 000’s 15,000 12,000 8,300 10,000 9,000 4,900 5,600 6,400 4,700 6,000 2,700 3,000 4,100 3,000 - *Q2 2010 EET KGI SMF AGI JAG ARZ HRG RBI GAM RML *See website for NI43
Slide 11: 10.7 M oz M&I; 6.8 M oz Inferred and growing
Resources and Reserves *See website for NI43-101 Reports Total NI43-101 Resources M&I 168 Mt @ 2.0 g/t – 10,730,000 oz Au Inferred 127.5 Mt @ 1.7 g/t – 6,805,000 oz Au Includes P&P 19.0 Mt @ 3.9 g/t – 2,400,000 oz Au Drilling 3604 Holes / 482,453 m CHOCO 10 NI43-101 Resources INCREIBLE 6 NI43-101 Re
Slide 12: Production Highlights
Production Highlights Gold Production increased from 100k oz in 2008 to 150k oz in 2009 and is expected to be 110k in 2010. Stabilization of gold sales policy in country should see production above 2009 levels in 2011 Production from Increible 6 to commence in 2011 SREP continues to be moved t
Slide 13: Production & Development Focus
Production & Development Focus Total NI43-101 Resources M&I 168.0 Mt @ 2.0 g/t – 10,730,000 oz Au Inferred 127.5 Mt @ 1.7 g/t – 6,805,000 oz Au Includes P&P 19.0 Mt @ 3.9 g/t – 2,391,000 oz Au Prod; 150k oz Au 2009 10 – 25k oz Au/yr additional 2011 Access Ramp Completed in Q1 2010 13
Slide 14: Choco 10
Choco 10 New gold sales policies and the permitting of the Increible 6 deposit will allow Company to aggressively pursue expansion plans of the Choco facilities 2010 production impacted by negative transitional gold sales policy (Q3 2009 –Q3 2010) and transition to dominantly hard rock ore. With
Slide 15: Development Highlights Increible 6
Development Highlights Increible 6 Updated internal resource completed in March 2010 with conversion of approximately one million ounces from inferred to indicated Indicated Resource to be included in on-going feasibility study New road construction connecting Increible 6 to Choco 10 to be com
Slide 16: Development Highlights Increible 6
Development Highlights Increible 6 Gold production from surface oxides at Increible 6 scheduled to begin in Q1 of 2011 Additional oxide material expected to add 4-6 k oz Au/month until expansion at Choco Mill completed Engineering completed on roads, open pits, and waste dump Ore to be truck
Slide 17: Choco 10 / Increible 6 3D Models
Choco 10 / Increible 6 3D Models Measured 34.7 Mt @ 2.2 g/t – 2,430,000 oz Au Indicated 105.2 Mt @ 1.7 g/t – 5,880,000 oz Au Inferred 59.2 Mt @ 1.5 g/t – 2,817,000 oz Au Choco 10 2464 Holes / 270,096m Increible 6 17
Slide 18: Feasibility Initiated to Advance Preliminary Assessment of Choco 10 and Increible 6
Feasibility Initiated to Advance Preliminary Assessment of Choco 10 and Increible 6 Preliminary Assessment (scoping study) completed by Micon International limited June 2009. The Assessment demonstrated positive economics on production of over 500,000 oz Au/yr at Choco 10, using a gold price of $7
Slide 19: Expansion Economics Vs Gold Price Leverage
Expansion Economics Vs Gold Price Leverage Economic Sensitivity to Gold Price* Au Price NPV8 IRR At US$700 gold, payback is estimated at ($US/oz) (000s $US) (%) 2.1 years (discounted at 8%) on a LOM of 450 (58,555) 3.7 12 years 500 50,624 12.0 550 154,075 20.8 US$700 gold the PA estimates a LOM
Slide 20: Capex per Annual Gold Ounces Produced
Capex per Annual Gold Ounces Produced (On Comparable Gold Mines Being Developed) $3.0 b 700k oz/yr $4,500 $4.4 b 1.25m oz/yr $4,000 $3,500 $3,000 $1.0 b 558k oz/yr $2,500 $844m $356m $789m 560k oz/yr 233k oz/yr $4286 $2,000 593k oz/yr $3584 $1,500 $239m $1,000 $1957 558k oz/yr $1330 $1507 $1529 $500
Slide 21: Mina Isidora High Grade Gold Mine
Mina Isidora High Grade Gold Mine Successfully recommenced underground production at Isidora after shutdown under previous ownership Greatly increase efficiency and continuity of operation in 2009/2010 Greater than three years of ore currently outlined for future production Development progr
Slide 22: Mina Isidora 3D Model
Mina Isidora 3D Model Drilled >25,000 metres in 2009; incl. 41.8g/t over 1.2m 22
Slide 23: Mina Isidora Expansion Potential
Mina Isidora Expansion Potential 40,000 m drilling /exploration program planned in 2011 to expand resources and reserves 23
Slide 24: Development Highlights – SREP/Alvarez Ramp
Development Highlights – SREP/Alvarez Ramp Completed surface work and portal with 200 m box cut through difficult saprolite to fresh rock , 1.5 km underground access ramp completed Development underway on main mineralized zones SREP mining permit received – Updated resource estimation complete
Slide 25: Development Highlights – SREP/Alvarez Ramp
Development Highlights – SREP/Alvarez Ramp Ramp to access the main mineralized gold zones at 200m depth completed in 2010 / development on mineralized structures on-going Pre-Feasibility Study by independent consultant Whillans Mine Studies Ltd. was completed in May 2010 25
Slide 26: Rusoro Mining: Future Growth & Opportunities
Rusoro Mining: Future Growth & Opportunities Restore production to over 150k oz Au/yr 2011, target >550oz Au/yr in 2014 Prove the viability of significantly expanding production at Choco 10 to >550,000 oz Au/yr in the near term, by completing a positive Feasibility Report in Q1 2011 Further ex