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November, 2009 RML : TSX.V
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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
t i ti d t l lt diff t i ll
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uncertainties, and actual results may differ materially.
These risks and uncertainties are detailed from time to time in the Company’s filings with the appropriate securities commissions.
PRODUCTION GUIDENCE 2009: 170 k to 190 k oz Au
Rusoro Mining at a Glance
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CASH COSTS : Among the lowest Cash Costs world wide in 2009
GROWTH : Targeting 558k oz Au/yr by 2012
EDGE : Proven ability to work in 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”.
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and foreign policy .
From Reuters: Russia Trumpets Venezuela Ties"Venezuela is now the most important partner of the Russian Federation, Medvedev said after his talks with Chavez at a state residence outside Moscow”
Current Situation For Rusoro In VenezuelaRML proven ability to operatein the current political environment
Government: supportive of RML, named “Partner of Choice”, with the formation of Isidora and Camorra “mixed enterprise” company.
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Rusoro Chairman Vladimir Agapov with President Hugo Chavez
Venezuela and Russia continue to strengthen political and economic ties, this is very positive for Rusoro Mining
Rodolfo Sanz and Rusoro Chairman Vladimir Agapov flanked by President Hugo Chavez and Russian President Dmitry Medvedev
RML Capital Structure
26.4%
13 5%
38.1%
24.1%
Gold Fields
Rusoro Mgmt & Insiders
I tit ti l
Share Capital (millions):Basic: 529.8Market Cap : US $300 MSym : RML ‐ TSX Venture Exchange
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Insiders, primarily the Agapov family, account for more than 13.5% of the shares of Rusoro
Gold Fields remain a significant shareholder
* On conversion of debt Peter Hambro will own 4% of RML
13.5% Institutional
Individual Investors
Operational Overview
Venezuelan Producer: 180k oz at US$370/oz cash costs for 2009
Operations: Rusoro operates the Choco 10 and Isidora mines processing ore from both through the Choco 10 Mill
Choco Feasibility Study Initiated: Feasibility study initiated to advance the positive Scoping Study, which outlined a major expansion of the Choco Mill and Mine to 558k oz Au/yr, with an NPV(8%) @ US$700 gold of US$449.7 M and an after tax IRR of 51.7%. Feasibility completion H1 2010
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Partnership: First to partner with the Venezuelan Government with a Mixed Enterprise Joint Venture Company operating the producing Isidora gold mine
Strong Resource Base: Total Measured and Indicated Resources of 7.1 million ounces with an additional Inferred Resource of 7.0 million ounces
San Rafael/El Placer Development: Pre‐feasibility study initiated at SREP target for completion 2010. Alvarez ramp advanced by 1000 m toward SREP’smain mineralized gold zones; will be completed in 2010
$917
$1,152
$726 $769
$713 $800
$1,000
$1,200
40,000
50,000
60,000
eces Au)
Production Achievements
Production Cash Cost
Achieving Targets and Goals
Cash Cost Reduction
Rusoro Ownership
Previous Ownership
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17,354
23,031
8,392 6,859
19,854
27,790
25,040
25,062
22,082
27,464
39,503
48,523
$505
$734 $497
$498 $502
$378 $322
$‐
$200
$400
$600
‐
10,000
20,000
30,000
Q3 2006
Q4 2006
Q1 2007
Q2 2007
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q3 2008
Q4 2008
Q1 2009
Q2 2009
US$/O
unce
Prod
uction
(Oun
Production Growth
200,000
400,000
600,000
65,685
2,895
9,663
170,000
58,000
old Oun
ces
Consolidated Gold Production vs. 2009 Gold Production Guidance
Consolidated Gold Production
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2006 Actual
2007 Actual
2008 Actual 2009
Guidance 2012 PEA Guidance
6 62 99 1 55Go
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Past Production vs. 2009 Gold Production Guidance
Previous Ownership Rusoro Ownership
Peer Review/CompsJunior Producers
Production & Cash Costs
2008 2009 To‐Date
Production (oz)
Cash Cost ($)
Production (oz)
Cash Cost ($)
Rusoro Mining Ltd. (RML) 99,663 649 88,026 351Gamon Gold Inc. (GAM) 151,510 528 102,603 454Red Back Mining Inc (RBI) 260 847 428 150 645 383
09/23/2009
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Red Back Mining Inc. (RBI) 260,847 428 150,645 383Alamos Gold Inc. (AGI) 151,000 389 88,000 340Kirkland Lake Gold (KGI) 47,833 800 48,012 750Aurizon Mines Ltd. (ARZ) 158,830 399 78,840 382Semafo Inc. (SMF) 195,400 461 122,200 487Jaguar Mining Inc. (JAG) 115,348 429 73,627 440
High River Gold Mines (HRG) 220,324 588 156,791 454Etruscan Resources (EET) 29,305 500 30,680 810Sino Gold (SGX) 123,760 422 88,390 439
2,700 3,000 4,1004,700 4,900 5,600 6,400
8,300 10,000
14,100
‐
3,000
6,000
9,000
12,000
15,000
EET KGI SMF AGI JAG ARZ HRG RBI GAM RML
Oun
ces 000’s
Total Gold Resource Ounces
Undervalued Relative to Junior Producers: Superior Ounces at Lowest Entry Point
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EET KGI SMF AGI JAG ARZ HRG RBI GAM RML
$15 $26 $49$83
$103$123 $133 $143
$173
$254
0
50
100
150
200
250
300
RML EET HRG GAM ARZ SMF JAG KGI AGI RBI
EV/O
z Au US$
Enterprise Value per Gold Resource Ounce
*See website for NI43‐101 Reports
Resources and Reserves*See website for NI43‐101 Reports
Total NI43‐101 ResourcesM&I 87 Mt @ 2.6 g/t – 7,099,000 oz Au
Inferred 111.4 Mt @ 1.9 g/t – 7,072,000 oz AuIncludes P&P 17.9 Mt @ 3.5 g/t – 2,020,000 oz Au
Drilling3437 Holes / 501,000 m
CHOCO 10 NI43‐101 ResourcesMeasured 2.6 Mt @ 2.9 g/t – 243,000 oz AuIndicated 56.3 Mt @ 2.5 g/t – 4,440,000 oz AuInferred 42.9 Mt @ 2.2 g/t – 3,020,000 oz Au
INCREIBLE 6 NI43‐101 ResourcesIndicated 23.5 Mt @ 2.11 g/t – 1,590,000 oz Au Inferred 17.5 Mt @ 1.95 g/t – 1,100,000 oz Au
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7.1 M oz M&I; 7 M oz Inferred and growing…….
g
Drilling2058 Holes / 224,000 m
Drilling499 Holes / 83,000 m
ISIDORA NI43‐101 ResourcesP&P 179,447 Mt @ 32.10 g/t – 185,085 oz AuM&I 470,000 Mt @ 20.41 g/t – 334,000 oz AuInferred 99,000 Mt @ 14.13 g/t – 45,000 oz Au
Drilling247 Holes / 48,800 m
SREP NI43‐101 ResourcesIndicated 639 kt @ 19.4 g/t – 399,000 oz Au Inferred
703 kt @ 23.2 g/t – 524,000 oz Au
Current UG DevelopmentAlvarez Ramp = 500 m
Diamond Drilling568 holes / 151,000 m
Production Highlights
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Guidance for 2009 on target: 170 k – 190 k oz AuProduction record set consecutive Qtr’s in 2009
Production from Increible 6 to commence in 2nd
half of 2009
SREP continues to be moved towards advanced exploration and development. Access to the main mineralized zones via the Alvarez Ramp expected in 2010
Production & Development FocusTotal NI43‐101 Resources
M&I 87 Mt @ 2.6 g/t – 7,099,000 oz AuInferred 111.4 Mt @ 1.9 g/t – 7,072,000 oz Au
Includes P&P 17.9 Mt @ 3.5 g/t – 2,020,000 oz Au
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Choco 10
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Vastly improved mill performance – Q1/Q2 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
Scoping Study showed positive expansion economics. Feasibility Study initiated to confirm viability of a significant expansion of the Choco Mill to 558k oz Au/yr 2012
Positive turn‐around in mill performance the culmination of improved haulage availabilities, mill availabilities, restructured haulage contract and a new kiln and carbon recovery system
Collective agreement with the unions established – Workers and Ministry pleased
14,500 oz per month target run‐rate achieved
Development HighlightsIncreible 6
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Engineering completed for roads, waste dumps, and pit designs
New road construction connecting Increible 6 to Choco 10 completed
Mine permitting nearing completion
Material to be trucked to Choco 10, 8 km away, for processing
Gold production from surface oxides at Increible 6 during the 2nd half of 2009expected to add 1‐2 k oz Au/month until expansion at Choco Mill completed
Choco 10 / Increible 6 3D Models
Choco 10
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Increible 6
Feasibility Initiated to Advance PreliminaryAssessment 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 $700/oz Au
The most robust financial outcome of the PA is derived from combining existing hard‐rock milling capacity with a new 15,000 t/d mill, for a total
/
Rosika
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capacity of 20,000 t/d
Gold production at the expanded mine and mill is forecast to reach a max of 717,300 oz Au in Yr 10 with an average rate of 558,200 oz Au/yr over the 12 year LOM. LOM cash cost estimate US$331/oz
Capex costs estimated at US$208.5 million plus contingencies of US$30.8 million and sustaining capital of US$80.3 million LOM
Coacia
Pisolita 500m
Underlying reason Choco was purchased was the production growth potential from 100,000 oz Au/yr to more than 500,000 oz Au/yr near term
Expansion Economics Vs Gold Price Leverage
Au Price($US/oz)
NPV8(000s $US)
IRR(%)
450 (58,555) 3.7500 50,624 12.0550 154,075 20.8600 254,075 20.8650 352 208 40 1
Economic Sensitivity to Gold Price*
At US$700 gold, payback is estimated at 2.1 years (discounted at 8%) on a LOM of 12 years
US$700 gold the PA estimates a LOM net revenue of US$3.77 billion and an average annual after tax cash flow of US$77 million
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650 352,208 40.1700 449,768 51.7750 547,318 66.3800 644,646 86.3850 741,975 120.7900 839,304 >120.7950 936,633 >120.7
* In the PA the forecast gold price is quoted net of applicable taxes
Rusoro’s power and fuel costs are arguably the lowest in the world at $0.026/kWhr and $0.01/gal for gas or diesel
At a gold price of US$700/oz, the PA estimates the NPV (8%) to be US$449.7 million and an after‐tax IRR of 51.7%. Using US$850/oz, the project generates an NPV (8%) of US$ 741.9 million and an after‐tax IRR of 120.7%
Capex per Gold Ounces Produced(On Gold Mines Being Developed to >500k oz/yr)
$2,500
$3,000
$3,500
$4,000
$4,500
$1.0 b558k oz/yr
$844m $356m
$4.4 b1.25m oz/yr
$3.0 b700k oz/yr
20Exceptional Development Economics at Choco 10
$0
$500
$1,000
$1,500
$2,000
RML OSK DGC KRY GBU NG ABX
$429
$1330 $1507 $1529$1957
$3584
$4286
$239m558k oz/yr
$789m593k oz/yr
560k oz/yr 233k oz/yr
Choco 10 CanadianMalarctic
Detour lake Las Cristinas
RosiaMontana
DonlinCreek
Pascua Lama
Mina IsidoraOur Newest Gold Mine
Successfully recommenced undergroundproduction at Isidora after 3 month shutdown under previous ownership
Estimated 2 years of ore developed for future production – development program
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p p p gongoing
Currently completing 10,000 m explorationprogram, which has identified mineralized structures for possible resource expansion
Isidora is a true gem with mine grades in excess of 30 g/t
Mina Isidora 3D Model
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Development Highlights – SREP/Alvarez Ramp
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High grade ore over 20 g/t Au, warrants aggressive advancement
Completed surface work and portal with 200 m boxcut through difficult saprolite to fresh rockOver 950m of underground ramp completed in fresh rock toward the main mineralized zones SREP mining permit received – Updated resource estimation completedRamp to access the main mineralized gold zones at 200 m depth to be completed in 2010Pre‐Feasibility Study contracted to Whillans Mine Studies Ltd. and is underway
Increase production above 180k oz Au/yr 2009, target 558oz Au/yr in 2012
Prove the viability of significantly expanding production at Choco 10 to
558,000 oz Au/yr in the near term, by completing a positive Feasibility Report
in the first half of 2010
Further development of/and exploration for high‐grade ore at Isidora Mine
Rusoro Mining: Future Growth & Opportunities
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Complete development of SREP and the Alvarez Ramp in 2010
Continue to build on strong “mixed enterprise” initiative with the Venezuelan
government to put additional assets into play
Rusoro is on target to produce over 500,000 ounce of gold per year by 2012
ManagementVLADIMIR 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 in the advancement of the Company's Venezuelan gold projects over the past five years and will continue to play an integral role as Rusoro's projects moves forward
GEORGE SALAMIS, President• Mr. Salamis has over 20 years experience directing exploration, development and mining operations in many different regions of the world including Latin America
GARYWARNECKE CFO
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GARY WARNECKE, CFO• Mr. Warnecke moved to Venezuela in 2006 to work with Grupo Agapov and was an essential part of the team that brought Grupo Agapov public as Rusoro Mining Ltd. Mr. Warnecke is a US CPA and in addition to being interim CFO he is Rusoro'sInternal Auditor.
MATIAS HERRERO, VP Finance• Mr. Herrero is a US CPA and a former audit manager with PriceWaterhouseCoopers (PwC). At PwC he specialized in working with Canadian mining companies operating in Latin America.
JOSE MANUEL RODRIGUEZ, Venezuelan General Manager• Formerly with state owned gold miner CVG Minerven
GREGORY SMITH, PGeo., VP Exploration• Mr. Smith has 15 years of experience working in Venezuela including the delineation of more than 5 M oz of gold
Corporate Directory
Vancouver Office1055 Dunsmuir St Suite 2164Four Bentall CentrePO Box 49132Vancouver, BC V7X 1B1Tel: 604 632‐4044Fax: 604 632‐4045
Caracas OfficeAv. Francisco de Miranda T f A
Investor Inquirese‐mail: [email protected] free 1 800‐668‐0091
Share ListingTSX Venture ExchangeSymbol: RML
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Av. Francisco de MirandaUrbanización El RosalTorre Dozsa, Piso 6Caracas, VenezuelaTel: 58.212.952.2222Fax: 58.212.952.4447
Transfer AgentComputershare (Formerly Pacific Corp. Trust)510 Burrard St 2nd FloorVancouver, BCV6C 3B9(604) 689‐9853
www.rusoro.com
Russia OfficeLeningradskiy Prospect, 31, Bldg.3125284, Moscow, RussiaTel. +7 495 956 3731Fax + 7 495 956 3732
