Rusoro Mining Ltd. · TSXV:RML
Rusoro Mining — Investor Presentation (December 2008)
25 slides from Rusoro Mining's investor presentation, December 2008
Slide 1: An Emerging Mid-Tier Gold Producer
AN EMERGING MID-TIER GOLD 1 PRODUCER
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: 12 Month Highlights
12 Month Highlights • Production: Exploration company to junior gold producer in 12 months • M&A: Acquired two operating gold mines for average of $73 per ounce • Organic Growth: increased gold resources by 20% in 12 months; total resources now stand at 7.10 Moz Au M&I and 7.07 Moz Au Inferred • Foc
Slide 4: The Current Situation In Venezuela
The Current Situation In Venezuela es Ch ni t ian gas Eas pa in Cu Cen es m Oi a - Ru ds t hin ian Mid co ba e lt In o n C ve o s M Go il to m st e di ar tra m O o ca en ss lA l ts Ca ss m er Ru re ica From Time Magazine: Making New Friends: “After a face-to-face meeting, Venezuelan President Hugo C
Slide 5: The Current Situation In Venezuela
The Current Situation In Venezuela Rusoro Chairman Vladimir Agapov with President Hugo Chavez • RML proven to be able to operate in the current political environment • Government: supportive of RML, named “Partner of Choice”, with the formation of Isidora/Camorra “mixed enterprise” company. Actively
Slide 6: RML Capital Structure
RML Capital Structure Share Capital (millions): Basic: 391.5 Fully Diluted : 535.6 16% 24% Fully Diluted $ : $500 mil Goldfields 22% 38% Rusoro Mgmt & Insiders Institutional Individual Investors * On conversion of debt Peter Hambro will own 4% of RML • Insiders, primarily the Agapov family, account
Slide 7: Resources and Reserves
Resources and Reserves Total NI43-101 Resources M&I 87 Mt @ 2.6g/t – 7,099,000 oz/Au Inferred 111.4 Mt @ 1.9g/t – 7,072,000 oz/Au Drilling 3437 Holes / 501,000m 30 ounces per metre drilled CHOCO 10 NI43-101 Resources INCREIBLE 6 NI43-101 Resources Measured 2.6 Mt @ 2.9g/t – 243,000 oz/Au Indicated 2
Slide 8: Peer Review/Comps
Peer Review/Comps 11/30/2008 Junior Producers Total Oz Au (Resources - ,000) 16,000 14,000 12,000 10,000 8,000 Median 4,837,000 oz 6,000 4,000 2,000 0 KGI EET AGI JAG SMF ARZ RBI HRG IMZ GAM RML Three times the median, well ahead of peers…. 8
Slide 9: Peer Review/Comps
Peer Review/Comps Junior Producers 11/30/2008 Enterprise Value Per Oz Au (Resources) $250 $200 $150 $100 Median $ 64/oz $50 $0 HRG RML IMZ EET JAG SMF KGI ARZ AGI RBI GAM Undervalued regardless of the region of operations…. 9
Slide 10: Production Highlights
Production Highlights • Production Forecast for Q4: 30,000 oz Au • Production Forecast for 2009: 165k oz Au • Production from Increible 6 to commence in 1st half of 2009 • Commercial Production at SREP in Q1 2010 • Other sources of ore and tailings being examined for custom milling in the El Callao
Slide 11: Production And Development Focus
Production And Development Focus El Callao District Production and Development: Choco 10, Isidora & Increible 6 Cuyuni/Km 88 El Dorado District Districts Development: Exploration: SREP Deposits, Valle Hondo and Alvarez Ramp, Yuruan Projects & Emilia 11
Slide 12: Choco 10
Choco 10 • Vastly improved mill performance and through-put achieved. • Milling record of 231,593 tonnes in July 2008 • Capital Expenditures: Over $20M in new mining equipment spent in the last 6 months • New haulage contract structured with primary contractor, will reduce mining costs • Collective
Slide 13: Choco 10 / Increible 6 3D Models
Choco 10 / Increible 6 3D Models Choco 10 3D Model Increible 6 3D Model 13 13
Slide 14: Development Highlights Increible 6
Development Highlights Increible 6 • Engineering completed for roads, waste dumps and pit designs • New road construction connecting Increible 6 to Choco 10 underway • Mine permitting nearing completion - Reserve and condemnation drilling complete • Ore to be trucked to Choco 10, 8km away, for proce
Slide 15: Scoping and Feasibility: Choco 10 – Increible 6
Scoping and Feasibility: Choco 10 – Increible 6 • Previous scoping study done by Gold Fields demonstrated positive economics on VB K production of 350,000 oz/yr operation at Choco 10, using a gold price of $550/oz • Rusoro/MICON evaluating production scenarios well in excess of 350,000 oz/yr, Rosika
Slide 16: Mina Isidora: Our newest Gold Mine
Mina Isidora: Our newest Gold Mine • Successfully recommenced underground production at Isidora after 3 month shut- down under previous ownership • Ore from underground is currently being processed at Choco 10, 6km away • Potential to lower cut-off grade from 16 g/t to 10 g/t due to shorter trucking
Slide 17: Mina Isidora 3D Model
Mina Isidora 3D Model P&P 179,447 Mt @ 32.10 g/t Au (185,085 oz) M&I 601,647 @ 20.41 g/t Au (394,839 oz) Inferred 119,455 Mt @ 13.6 g/t (52,235 oz) 247 holes / 48,800m
Slide 18: Development Highlights SREP/Alvarez Ramp
Development Highlights SREP/Alvarez Ramp • Completed surface work and portal at the Alvarez Ramp • Over 200m of underground ramp advance through difficult saprolite into fresh rock • SREP mining permit received – Updated resource estimation completed • SREP will produce at annualized rate of 80,000
Slide 19: Exploration Highlights
Exploration Highlights • 2007: RML drilled 230,000 m • 1st half of 2008: RML drilled 145,000 m on 8 projects • Current drilling focus: Choco 10 oxide and feasibility, Increible 6 upgrade and expansion, Valle Hondo and Yuruan Exploration • Updated Resource Estimates: 1) SREP – Completed Q4 2008 2) In
Slide 20: Exploration – Increible 6
Exploration – Increible 6 • Located in El Callao 8Km from Choco 10 • 2007/08 drilling increased previous resources 300% - Impressive organic growth • 500 holes not included in latest resource model, will be incorporated in updated estimate(Q1 2009) Recent results include; • Drilling focused on upgra
Slide 21: Exploration – Valle Hondo
Exploration –Valle Hondo • Located 40Km SE of the town of El Dorado VALLE HONDO NI43-101 Resources Indicated 3.5 Mt @ 0.92g/t – 103,000 oz/Au Inferred 47 Mt @ 0.89g/t – 1,344,000 oz/Au Diamond Drilling 114 holes / 13,000m • Several kilometre- scale targets including Apanao (4.5Km X 1.5Km) and Arenal
Slide 22: Exploration - Yuruan
Exploration - Yuruan • Located 40Km S of the town of El Dorado • Completed 18,000m of drilling to date • Results received for slightly more than half of the drilling to date. Highlights include; ddh from to m Au g/t Area DY-08-39 74.00 77.00 3.00 11.39 Zona Norte DY-07-14 48.00 55.30 7.30 4.00 Zona
Slide 23: Where to from here…
Where to from here… • Focus on further cost cutting and optimizing of Choco mill and equipment • Prove the viability of significantly expanding production at Choco 10 to over 350,000 oz Au/yr in the near term • Bring Increible 6 into the production profile at Choco 10 by mid 2009 • Further maximize
Slide 24: Management
Management VLADIMIR AGAPOV, Chairman of the Board • Mr. Agapov is the major shareholder of Rusoro and has been instrumental in dealing with the co-ordination of relations with the Venezuela government and its various ministries ANDRE AGAPOV, Chief Executive Officer • Mr. Agapov has been instrumental
Slide 25: Corporate Directory
Corporate Directory Vancouver Office 1055 Dunsmuir St Suite 2164 Four Bentall Centre Share Listing PO Box 49132 TSX Venture Exchange Vancouver, BC V7X 1B1 Tel: 604 632-4044 Symbol: RML Fax: 604 632-4045 Investor Inquires Caracas Office e-mail: info@rusoro.com Av. Francisco de Miranda toll free 1 800
Rusoro Mining — Investor Presentation (December 2008) on 6ix