Rusoro Announces Updated Resource Estimate for the Choco 10 Deposits With a 78% Increase in Measured and Indicated Ounces to 8.3M oz With an Additional 2.8M oz Inferred
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/06/10 -- Rusoro Mining Ltd. (TSX VENTURE: RML) has received an updated resource estimate for the Choco 10 Deposits which was completed by the independent consulting firm Micon International Limited ('Micon'). The operating Choco 10 Mine, which produced 126,000 ounces in 2009, is located in the El Callao Mining District in southeastern Venezuela. The Project is currently the subject of a Feasibility Study evaluating an expansion of the Choco operations to 20,000 tonnes per day.
The Micon independent NI 43-101 resource estimate has been prepared by D. Makepeace, P.Eng. senior geologist for Micon and a qualified person as defined by NI 43-101. A NI 43-101 Technical Report detailing the Updated Resource Estimate will be filed on SEDAR within the next 45 days. The updated resource estimate is outlined in the following table;
Current Choco 10 Mineral Resource Estimate at December 2009
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Grade
Tonnes Au g/t Grams Au Ounces Au
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Measured 34,700,000 2.17 75,400,000 2,430,000
Indicated 105,200,000 1.74 182,900,000 5,880,000
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M & I 139,900,000 1.85 258,300,000 8,300,000
Inferred 59,200,000 1.48 87,750,000 2,800,000
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1 It cannot be assumed that all or any part of an Inferred Mineral
Resource will be upgraded to an Indicated or Measured Mineral Resource
as a result of continued exploration.
2 Mineral resources which are not mineral reserves do not have
demonstrated economic viability.
3 Numbers may not add due to rounding.
The Updated Choco 10 Resource Estimate was completed using 3D computer models with grade estimated by inverse distance cubed on two metre composites. The estimate uses a cut off grade of 0.5 g/t Au, a density (specific gravity) of 1.60 g/cm3 for saprolite, 2.35 g/cm3 for saprock and 2.70 g/cm3, for hard rock. High grade gold assays have been capped to 34.286 g/t Au.
In relation to the previous resource estimate which was detailed in a Micon Technical report by Leader, R.J., J. Perry, I. Ward, C. Jacobs, and C. Lattanzi, titled 'Technical Report on the PMG (Gold Fields) Choco 10 Concession and Mine, Estado Bolivar, Venezuela' dated November 21, 2007, the updated Choco Measured and Indicated resource (139.9Mt @ 1.85g/t Au) saw contained ounces increased by 78% (+3.6M oz) resulting from a 138% increase in tonnes and a 25% decrease in grade while the updated Inferred resource (59.2Mt @ 1.48g/t Au) decreased by 6% (-194,000 oz) resulting from a 37.9% increase in tonnes and a 32.2% decrease in grade.
The updated resource estimates include a significant amount of new drill data (45,453 metres from 406 new drill holes) for a total of 2,464 drill holes totalling 270,096.3 metres drilled, bringing the drill spacing for most areas of the deposits to 25 metres by 25 metres.
The Choco 10 mineralization consists of a series of interrelated deposits distributed over an area three kilometres long by one kilometre wide. Controls on gold mineralization include sheared, faulted or fractured structures, favourable lithologies, and fold hinges. Gold most often occurs in quartz-carbonate veining with associated pyrite. Current mining and milling operations (averaging 5000 to 6000 tonnes per day) are active on three of the four deposits; Coacia, Rosika, and Pisolita.
Updated Choco 10 Mineral Resource Estimate by Deposit
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Measured + Indicated
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Gold
Tonnes Grade -------------------------
(t) (g/t) (g) (oz)
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Rosika Total 18,325,000 2.15 39,397,000 1,267,000
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Coacia Total 1,325,000 1.55 2,051,000 66,000
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Pisolita Total 5,350,000 1.58 8,428,000 271,000
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VBK Total 114,910,000 1.81 208,449,000 6,701,000
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Grand Total 139,910,000 1.85 258,324,000 8,305,000
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Inferred
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Gold
Tonnes Grade -------------------------
(t) (g/t) (g) (oz)
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Rosika Total 12,165,000 1.55 18,880,000 607,000
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Coacia Total 8,329,000 1.68 13,960,000 449,000
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Pisolita Total 18,694,000 1.15 21,458,000 690,000
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VBK Total 19,974,000 1.67 33,452,000 1,075,000
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Grand Total 59,162,000 1.48 87,751,000 2,821,000
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A Feasibility Study is currently underway to follow up on the positive Preliminary Assessment (PA), completed by Micon International Limited, which is evaluating the viability of a major expansion at the Choco Mine and Choco Mill and which will incorporate the nearby Increible 6 gold deposit. The PA is detailed in a report dated June 2, 2009 and titled 'Technical Report on the Preliminary Assessment of the Expansion of Production at Choco 10, Bolivar State, Venezuela'. The PA outlined favourable economics for a significant expansion to 20,000 tonnes per day which would result in production of an average of 558,000 oz Au/yr at a cash cost of US$331/oz Au over the 12 year life of mine. The PA results were reported in the news release dated May 19, 2009, which is available on SEDAR at www.sedar.com.
'Choco 10 remains the Company's flagship mine and the updated Resource Estimate further confirms the potential of these deposits. This is a significant step forward especially the 78% increase in Measured and Indicated ounces and continuing to increase the size of the overall deposit. These zones form the basis of the Feasibility Study currently underway, modelling a fourfold expansion at the Choco Operations,' reports Greg Smith, Vice-President of Exploration.
Diamond and RC drilling was conducted by independent contractors. All drilling and drill sampling has been completed using industry standard practices. Drill core is described in detail and photographed and one half of the core is kept for inspection and reference. Sample analyses have been conducted at a series of independent analytical facilities located in Bolivar State Venezuela including ACME Lab in Guasipati, SGS labs of El Dorado, Triad Labs located in El Callao, and Actlabs in Tumeremo. All sample analyses was completed using industry standard practices and standard samples, blanks and duplicate check samples were randomly inserted into the sample stream to ensure quality control. A review of the QA/QC results shows no significant bias and all results are considered highly reliable. Sample rejects for Rusoro drill samples are stored in Rusoro's secure facilities in El Callao, Venezuela, and will continue to be available for any further testing which may be required.
Qualified Persons: The NI 43-101 compliant resource estimate has been prepared by the independent consulting firm Micon International Limited by qualified person D. Makepeace P.Eng. Mr. Gregory Smith, P.Geo., the Vice-President Exploration of the Company, is the Qualified Person as defined by NI 43-101, and is responsible for the accuracy of the technical data and information contained in this news release.
ON BEHALF OF THE BOARD
Andre Agapov, Chief Executive Officer and President
Forward-looking statements: This document contains statements about expected or anticipated future events and financial results that are forward-looking in nature and as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events, and the Company's capability to execute and implement its future plans. Actual results may differ materially from those projected by management. For such statements, we claim the safe harbour for forward-looking statements within the meaning of the Private Securities Legislation Reform Act of 1995.
'Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.'
Contacts:
Rusoro Mining Ltd.
604-632-4044 or Toll Free: 1-800-668-0091
604-632-4045 (FAX)
info@rusoro.com
www.rusoro.com