Rusoro Mining Ltd. · TSXV:RML
Rusoro Mining — Investor Presentation (July 2010)
26 slides from Rusoro Mining's investor presentation, July 2010
Slide 1: Rusoro Mining Presentation, July 2010
July, 2010 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 GUIDENCE 2010: 150,000 oz Au CASH COSTS : Targeting under US$400/oz when at full production GROWTH : Guidence >550k oz Au/yr by 2012 EDGE : Proven ability to work in Venezuela 3
Slide 4: Strong Political Ties between Russia and Venezuela
Strong Political Ties between Russia and Venezuela From Time Magazine: 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: Russia Tr
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 24.1% Market Cap : US $100 M Sym : RML - TSX Venture Exchange Gold Fields 38.1% 26.4% Rusoro Mgmt & Insiders 13.5% Institutional Individual Investors * On conversion of debt Peter Hambro would own 4% of RML Insiders, primarily the Agapov
Slide 7: Operational Overview
Operational Overview Venezuelan Producer: Guidance of 150,000 oz Au at under $600/oz in 2010 Operations: Rusoro operates the Choco 10 and Isidora mines processing ore through the Choco 10 Mill and the Camorra Mill respectively Choco Feasibility Study Initiated: Feasibility study initiated to a
Slide 8: Achieving Targets and Goals
Achieving Targets and Goals Cash Cost Production Reduction Growth Production Achievements $1,152 Production Cash Cost 60,000 $1,200 Previous Rusoro Ownership Ownership 50,000 $1,000 $917 $769 Production (Ounces Au) 40,000 $726 $800 $713 US$/Ounce $734 $587 $497 30,000 $502 $600 $498 $378 $505 20,000
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 65,685 99,663 62,895 200,000 0 2006 2007 Actual 2008 Actual 2009 Actual 2012 PEA Actual Guidance Previous Ownership Rusoro Ownership Past Production vs. Expansion P
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 - EET KGI SMF AGI JAG ARZ HRG RBI GAM RML *See website for NI43-101 Repo
Slide 11: Resources and Reserves
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 150k in 2010 Production from Increible 6 to commence in H2 of 2010 SREP continues to be moved towards future production. All permits are in place and access to the main mineralized zon
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 Vastly improved mill performance – H1 2009 production 88,026 oz Au at US$351/oz Au, on throughput of 1,139,000 tonnes - An historical best for all categories for 6 months Recent production has been impacted by transition to dominantly hard rock ore. Plan in place for additional crushing
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 completed
Slide 16: Development Highlights Increible 6
Development Highlights Increible 6 Gold production from surface oxides at Increible 6 scheduled to begin in second half of 2010. 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 t
Slide 17: Choco 10 / Increible 6 3D Models
Choco 10 / Increible 6 3D Models Measured 24.7 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 Continuous / uninterrupted operation in 2009 Greater than three years of ore currently outlined for future production development program ongoing expected to e
Slide 22: Mina Isidora 3D Model
Mina Isidora 3D Model Drilled >25,000 metres in 2009; incl. 41.8g/t over 1.2m Isidora is a true gem with mine grades in excess of 30 g/t 22
Slide 23: Mina Isidora Expansion Potential
Mina Isidora Expansion Potential Currently initializing 40,000 m drilling / exploration program, designed to expand resources and reserves Isidora is a true gem with mine grades in excess of 30 g/t 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 , underground access ramp completed Development underway on main mineralized zones SREP mining permit received – Updated resource estimation completed High
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 March 2010 / development on mineralized structures on-going Pre-Feasibility Study contracted to Whillans Mine Studies Ltd. was completed in may 2010 High grade ore over 20 g/t Au,
Slide 26: Rusoro Mining: Future Growth & Opportunities
Rusoro Mining: Future Growth & Opportunities Maintain production at 150k oz Au/yr 2010, target >550oz Au/yr in 2012 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 2010 Further explorati