Rusoro Plans To Be Producing Over Half A Million Ounces Of Gold Per Year By 2012, Providing President Chavez Can Offer A Decent Gold Price

By Charles Wyatt

The name Rusoro means Russian Gold, and it is important to take this on board at the outset, as the Agapov family, which set up Rusoro, has been operating in Venezuela since 2002. Venezuela under Hugo Chavez is not the easiest country in which a North American company can operate, as several, such as Gold Reserve Inc and Crystallex, will attest. In his old fashioned socialist way, however, Hugo likes the Russians and it is clear that he visualises Rusoro playing a role as a quasi state mining company. The company has kept to all its promises and is now looking at producing at a rate of over 500,000 ounces of gold before the end of 2012. This is quite a stride from 2009, when it produced 150,460 ounces at a cash cost of US$338 per cent, and that was done at virtually half the cost at which the company had mined in 2008. Last year, it’s true, production fell a little short of expectations. And it was this shortfall that presumably has led, in part, to the fall in the share price from around C60 cents back in December to the present C24 cents.

Last year also Rusoro completed a scoping study to evaluate the potential for expanding its Choco 10 gold mine and the nearby Increible 6 deposit, and the results of this study certainly gave support to the 500,000 ounce target. The study showed that an additional 15,000 tonnes per day processing capacity, taking the total up to 20,000 tonnes per day, would boost production to an average of 558,200 ounces per year at an average cash cost of US$331 per ounce over a 12 year mine life. The cost of...

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http://www.minesite.com/nc/minews/singlenews/article/rusoro-plans-to-be-producing-at-a-rate-of-over-half-a-million-ounces-of-gold-per-year-by-2012-provi.html

Jeff