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Rusoro Mining

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Stumbled across this from Crystallex thread and paid dividends watching and waiting.

 

Was marked down it would appear in sympathy with the woes of Venezuelan gold mining issues. Then came this RNS

 

Vancouver, Canada - Rusoro Mining Ltd., wishes to confirm that the Company is in possession of all necessary permits to produce gold at the Choco 10 Mine in El Callao as well as all permits to "Affect Resources" (Afectacion de los Recuros) for the development and future gold production (both underground and open pit) related to the SREP gold deposits near the town of El Dorado in Bolivar State Venezuela. This is in response to news concerning environmental permitting issues which have affected two unrelated mining companies working in the Imataca Forest Reserve Region of Venezuela. Rusoro has no active mining or mine development projects in the Imataca Forest Reserve region.

 

In meetings this week with the Ministry for Basic Industries and Mines ("MIBAM"), the Company was assured of the support of the Ministry and the Venezuelan Government in general for its mining and development activities. Representatives of MIBAM confirmed that Rusoro's operations are compliant with Venezuela mining and environmental laws and commended the Company for its strong relationship with its workers and local communities.

 

As well the Company wishes to re-iterate the positive nature of recent meetings and a subsequent tour of Rusoro's mining projects with Venezuelan Mines Minister, Mr. Rodolfo Sanz. From April 17th through April 19th the Company met with and toured the Mines Minister and his delegation to the Company's operations at the Choco 10 Mine and its SREP development projects near El Dorado. At the conclusion of these events the Minister expressed satisfaction with the Company's work and commitment to the region as well as its strong relations with its labor unions.

 

Rusoro CEO Andre Agapov comments, "Again, the Company is very pleased that the Minister took the time to tour the Company's operations and we view his previous comments and the assurances from the representatives of MIBAM as confirmation that Rusoro is recognized as a strong corporate citizen in the country. We look forward to moving forward with our growth initiatives and continuing to foster good relations with our workers and the people in the communities in which we work."

 

About Rusoro Mining

 

Rusoro Mining is an advanced junior gold producer with a large land position in the prolific Bolivar State region of Venezuela. With the resent acquisition of the Choco 10 mine the Company has expanded its asset base to 12.8 million ounces of gold and will reach an annualized production rate of 150,000 oz/yr in 2008. Rusoro is scheduled to drill 300,000 meters in 2008 to expand and upgrade its gold ounces for projected production expansion at both the Choco 10 Mine in El Callao and the Emilia Mine in El Dorado.

 

ON BEHALF OF THE BOARD

"George Salamis"

George Salamis, President

 

Further details of their operation on web-site along with nice share chart, which at the moment looks to be going back up.

 

Double usual volume traded Thursday and 5 times normal volume Friday.

 

Share continues to bounce off low's

 

http://www.rusoro.com/s/Stock_Info.asp

 

Be interesting to see how far it goes, maybe one for the patient. More to the point though, be interesting to see if it really does curry favour with the political administration unlike some of it's peers!

 

Riggers

(please can someone show clueles me how to link threads?, cant seem to suss it.....d'ohh)

 

 

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Hmm down on muc smaller volumes, maybe someone don't believe them/

 

Going to watch this with interest, back where it started post update.

 

Riggers

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On the back of investment from Peter Hambro, here comes another good news story.

 

Vancouver, Canada - Rusoro Mining Ltd. ("Rusoro") is pleased to announce that it continues to implement its regional consolidation strategy with the acquisition of Hecla Mining Company's ("Hecla") Venezuelan assets which include the Block B - Isidora mining leases and the La Camorra mill facility in Bolivar State, southeastern Venezuela. Hecla's Venezuelan assets are being acquired for US$20 million in cash and 4,273,504 (US$5 million worth of) Rusoro shares. The Hecla-Venezuela acquisition is subject to final regulatory approval and is expected to close the week of June 23, 2008.

 

As a result of reaching this strategic milestone, the second tranche of Rusoro's syndicated US$80 million financing led by Peter Hambro Mining Plc ("PHM") in the amount of US$52 million has been released.

 

Commenting on the acquisition, Rusoro CEO Andre Agapov states: "The Hecla-Venezuela acquisition confirms our exceptional growth profile and allows us to target an annual production rate of 220,000 ounces per year by the end of 2008. We have received strong in-country support for this acquisition and we look forward to employing our Venezuelan expertise to re-energize the Hecla-Venezuela assets for the benefit of our shareholders and the local communities."

 

________________________________________________________________________________

_________________________________________________

 

The key to this story which i'm following and trading on every pullback has to be the way this is developing into the way the Russians are playing the game.

 

"As part of the agreement with Hecla, the parties anticipate that the La Camorra mill and concession may revert to the Venezuelan State on or about January 1, 2009. Rusoro will own the La Camorra assets until that time and is pleased to announce that it is in discussions with the Venezuelan government to explore opportunities with Minerven and MIBAM to form a joint venture regarding the La Camorra and Block B - Isidora assets. Commenting on the prospective joint venture, Rusoro CEO Andre Agapov states: "We would be delighted to be selected as the partner of choice to work with Minerven and MIBAM to explore a joint venture that will benefit both the Venezuelan people and our shareholders and we are excited about the future opportunities that this type of collaboration may present for our shareholders."

 

Riggers

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Ok so it's not everyone's cup of tea, maybe because of Chavez's antic's, moral ethics or simply bombed out. But this little gem is alive and kicking and time for another look. Why?

 

Well there was this going on last week,TORONTO, Dec 15 (Reuters) - Rusoro Mining (RML.V) has made an unsolicited all-stock offer for Gold Reserve (GRZ.TO) to take over its Brisas gold and copper deposit in Venezuela, the Canadian-based company said on Monday.

 

Rusoro is offering three of its shares for each Gold Reserve share, which values the target at C$1.08 a share, or C$61 million ($49 million), a premium of 140 percent, based on Friday's closing prices.

 

Gold Reserve trades on the Toronto Stock Exchange and Rusoro trades on the TSX Venture Exchange.

 

Shares of Rusoro, which is based in Vancouver, British Columbia, but controlled by Russian Vladimir Agapov, fell 26 percent on the news, while Gold Reserve rose 51 percent.

 

Gold Reserve said in a statement it will wait until it receives a formal offer before it decides how to proceed.

 

Rusoro is already part of a joint venture with the Venezuelan government and the company appears set to benefit from the country's desire to increase control of its mining sector and boost ties with Russia.

 

Venezuela's mining minister, Rodolfo Sanz, told a Russian government delegation in early November it would sign an accord with Rusoro to operate the Brisas and Las Cristinas projects, the country's largest gold deposits.

 

Canada's Crystallex (KRY.TO) operates the Las Cristinas project under contract, and the company's shares have plunged as its efforts to get final approval to mine the deposit have dragged on.

 

Shares of Rusoro were down 10 Canadian cents at 26 Canadian cents, valuing the offer at 78 Canadian cents a share. Gold Reserve was up 23 Canadian cents at 68 Canadian cents.

 

Brisas is expected to yield nearly 500,000 ounces of gold and 60 million pounds of copper annually once it reaches production, the company has said.

 

****** If anyone doesn't know the story, simple terms one's out of favour in Venezuala, the other is not but you will need to d.y.o.r there a bit*******

 

But why not let the main man explain himself as interviewed

 

http://watch.bnn.ca/commodities/december-2...008/#clip123014

 

This is obviously viewed as hostile by Gold Resource, but doing the maths they get a 30% stake unless i'm wrong and the chance to make some money or whistle in the wind it seems.

 

Coupled with this RML also added a nice little update on another territory they had recently been given :

 

Dec 19, 2008 -- Rusoro Mining Ltd. (CDNX:RML.V - News) ("Rusoro" or the "Company") is pleased to report that it has achieved record gold production at historically low cash costs at its Choco 10 mine for November 2008. The Company also reports that operations at the Isidora mine continue to exceed its expectations. Both mines are located near the town of El Callao in Bolivar State, Venezuela. Recent production highlights include:

 

- Record Production. The Choco 10 mill produced 13,475 oz of gold in November 2008. This marks a monthly record for 2008 and can be attributed to a record month of ore processed from the Choco 10 mine which produced 9,170 ounces of gold with the other 4,305 ounces of gold coming from ore processed from the near-by Isidora gold mine.

 

- Record Cash Costs. Cash costs at the Choco mill were a record low for November at US$385 per ounce of gold. The vast improvement is the culmination of a number of initiatives which include, improvements made to the haulage fleet availabilities, mill availabilities and optimization of the primary mine haulage contract.

 

- Record Ore Processed. The number of tonnes of ore processed through the Choco 10 mill has continued to impress with 193,796 tonnes processed in November.

 

Rusoro President, George Salamis states, "The Company is extremely encouraged that the months of hard work by Rusoro's operations team to optimize production at Choco 10 have resulted in the operations reaching these milestones. We have a number of initiatives that are on-going and the Company is optimistic that further reductions in our operational cash costs are achievable at the mines."

 

Rusoro CEO, Andre Agapov states further that, "To be able to report cash cost numbers from the Choco 10 mill which are under $400 US per ounce is a major achievement. To have arrived here in less than a year is a real tribute to the dedication of our workforce."

 

November: Mining and Milling

 

Total ore processed at the Choco 10 mill in November was 193,796 tonnes. The total gold recovered at the plant was 15,593 ounces with a total of 13,475 ounces poured during the month of November. As a breakdown of ounces produced, gold recovered from Choco 10 ore processing recovered 9,246 ounces, with 9,170 ounces poured during the month. This is a record monthly amount of gold poured for Choco 10 in 2008.

 

Isidora gold ore processed at the Choco 10 mill resulted in 6,347 ounces of gold recovered and 4,305 ounces of gold poured during the month of November. Significant ore development has now been completed at the Isidora mine which will allow the Company to sustain the current production levels moving forward. Additionally the Company will continue to optimize efficiency and lower its costs for its mining operations at the mine.

 

For the month of November 2008, the operational cash costs at the Choco mill for the combined gold produced from the Choco and Isidora mines was US$385 per ounce.

 

About Rusoro Mining

 

Rusoro Mining is a junior gold producer with a large land position in the prolific Bolivar State region of Venezuela. The Company operates the Choco 10 and Isidora Mines, processing the ore through the Choco Mill facility near the town of El Callao. The Company will produce approximately 100,000 ounces of gold in 2008 and is on schedule to have two additional mines (Increible 6 and SREP) in production by Q3 2009 and Q1 2010 respectively.

 

******* ONE DAY like it or not someone's going to realise these boys are Russia golden nugget in Venezuala and the locals are very obliging********

 

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Nice thread Riggers. Will post a reply just so as you dont feel you posting to the wind!

 

From my point of view, I need to "fix" :ph34r: my broker before I can venture into Canadian stocks.

 

Personally I feel there are plenty of beaten up mining plays without having to add Venezuala to the mix.

 

Might Russia be a safer bet than Venez?

 

Or China? So far China seems to be playing it by the rule book.

 

Getting big in Venezuala might just get the attention of its Gov!

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Nice thread Riggers. Will post a reply just so as you dont feel you posting to the wind!

 

From my point of view, I need to "fix" :ph34r: my broker before I can venture into Canadian stocks.

 

Personally I feel there are plenty of beaten up mining plays without having to add Venezuala to the mix.

 

Might Russia be a safer bet than Venez?

 

Or China? So far China seems to be playing it by the rule book.

 

Getting big in Venezuala might just get the attention of its Gov!

 

Why thankyou :)

 

Now when you've digested the theme, come back and have another word :lol: The point is RML have got the ears of Chavez, read everything about what's gone on the last year or so. There are favoured companies it would seem in all sectors, lots have been nationalised, but this one is different in mining other co's have lost their licenses and everything so far indicates the "russian" connection to be favoured. And that's my play in the main, though they do seem to be making good on lowering mining costs to boot!

 

Hence why GRZ are up the swanee if they don't play ball, i.m.o but you know the score d.y.o.r, but ask and i'll answer if i can.

 

Riggers

p.s Selftrade or td waterhouse might help if you want u.k based, though may require phone dealing with former.

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sc.png

 

Volumes build today as the plot thickens.

 

Meanwhile J.W here explains my thoughts in much better detail :lol: (extracts only to save too much repitition)

 

NOTE: James Winston has been covering Rusoro Mining (RML-TSX) since it went public in 2006. Since then they have completed 3 acquisitions, and just announced their intention to complete a fourth, by taking over Gold Reserve (GRZ-TSX). James gives us his perspective on Rusoro’s latest consolidation play, and helps clarify the options for shareholders and interested investors alike.

 

Rusoro Mining (RML, TSXV) – Trading for pennies, this producing gold company is building a dynasty in one of the richest untapped gold districts in the world.

A year ago I proclaimed that Rusoro Mining was my top pick. This unhedged gold producer was forecasting to triple production by 2013 and with lots of cash in the bank, acquisitions looked like a real possibility which would only enhance the organic growth and the solid fundamentals the company possessed.

 

And boy was I right – more than I could possibly dream of! Rusoro seems destined to become one of the major market winners that will emerge from this market meltdown.

 

They have shown they can unlock the value in the ground for mining operations where others could not. Rusoro bought Choco 10 mine from Gold Fields and cranked up the production. They bought two mines from Hecla and are rationalizing them.

 

The management team of Gold Reserve has been plagued with delays at its multi-million ounce Brisas deposit, this after spending more than 15 years and over $230 million trying to advance the project. They have gone so far as to start selling some of the mining equipment to be used at the mine in order to raise cash, presumably for other purposes!

 

If this bid is successful, Rusoro will have almost 30 million ounces of gold in the ground, almost $100 million cash and production of over 100,000 ounces with a projected target of 300,000 to 500,000 within five years.

 

Andre Agapov, Chief Executive Officer of Rusoro flatly stated that they could “unlock the permitting deadlock that has plagued the timely development of the Brisas Project.”

 

To be blunt, Gold Reserve has basically nothing but a chunk of land in Venezuela, without mining permits, that will likely never produce, and an after debt cash position of $2 million.

 

The option facing their shareholders is, do I take a 30% stake in Venezuela’s biggest gold producer that is growing reserves and production like crazy or do I hope Gold Reserve management can resolve their permitting issues? If they think the later, their destined for failure.

 

History of Acquisitions

 

A year ago, Rusoro Mining purchased 100% of Gold Fields International's (GFI)Venezuelan assets featuring the producing Choco 10 mine for $516 million in cash and stock. GFI is now Rusoro's largest shareholder with a 38% stake. Rusoro only paid about $70 per ounce for GFI's gold assets. Just two years ago, GFI, the giant South African gold miner, paid $130 an ounce for the mine. Rusoro has purchased these assets at a deep discount with fantastic – and fast growing cash flow.

 

That seems like a sweet deal for Rusoro but why would GFI make such an offer? In Venezuela it’s all about relationships with President Hugo Chevez and his government. It’s something other foreign mining companies don’t have and a result, are being stalemated in developing their gold assets.

 

Rusoro's Chairman and controlling shareholder is a Russian entrepreneur, Vladimir Agapov, who has forged strong relationships in the country. And in a broader sense, Russia and Venezuela have very tight ties economically and politically.

 

But for us investors it means that Rusoro can get permits passed and bureaucratic problems are quickly solved. This is something GFI experienced and they very publically stated that Rusoro was better positioned to unlock the value of their Venezuelan assets, and took a back seat with a large share block – a win-win-win – for Rusoro, GFI, and us the shareholders.

 

This acquisition has given Rusoro 25,000 hectares of prime exploration ground in the prolific Bolivar State Gold Belt of Venezuela – which is comparable to other districts that have produced tens of millions of ounces, including Ashanti in West Africa and Kirkland Lake in Canada.

 

Bolivar State is also home to the 20 million ounce Las Cristinas deposit as is the 14 million ounce Brisas gold deposit. I can see the writing on the wall…

 

This past summer the relationship solidified between Rusoro Mining and the Venezuelan government when Rusoro was named as a ''partner of choice'' for gold mining opportunities.

 

This news came on the heels of an announcement that Rusoro received the government's approval to complete the US$25 million acquisition of Hecla Mining Co.'s Venezuelan assets. This deal saw Rusoro pay $20 million in cash and 4.3 million shares, then worth $5 million to acquire Hecla’s assets.

 

Hecla Mining was having some operational issues in Venezuela and after a three month shutdown Hecla decided a partnership scenario with Rusoro would be the best win-win option.

 

This time though, Rusoro and the Venezuelan Ministry of Mines with Basic Industries formed a 50/50 partnership involving Empresa de Produccion Social Minera Nacional C.A., a ministry subsidiary. The key assets in this deal are the Block B Isidora mining leases and the Camorra mill.

 

Rusoro reported on December 1st that after their first full month of operation, the Isidora mine produced 4,722 ounces at an estimated cash cost of $247 which were processed at the Choco 10 plant. “Gold production levels are being ramped up considerably up from the levels achieved in September, with a steady-state production level of 6000 to 7000 ounces per month established as a target.”

 

Obviously huge potential was unlocked from a formerly stalled operation where Hecla management did not have the connections in-country to get the job done.

 

But that still leaves two major targets…

 

Could Rusoro Unlock the Value for Gold Reserve and Crystallex??

 

Two of Venezuela’s top gold projects are currently stalled due to permitting issues. The Brisas project owned by Gold Reserve and next door Crystallex’s Las Cristinas project have huge potential.

 

The benefit for Rusoro shareholders is huge. Over 10 million additional gold reserves.

 

For Gold Reserve shareholders they get the benefit of:

 

• Immediate Production of over 100,000 gold ounces in 2008 plus organic growth.

• Organic production Growth from existing proven and probable reserves.

• World Class Reserve and Resource Base of 12.2 million ounces of proven and probable gold reserves. Measured and indicated resources, inclusive of reserves, would total 18.9 million ounces of gold. The combined company would also have additional resources of 9.3 million inferred gold ounces. In addition, the Brisas Project contributes 1.4 billion pounds of copper in proven and probable reserves.

 

Conclusion

 

Both Hecla Mining and Gold Fields saw the writing on the wall and opted for a partnership arrangement whereby they could still reap the rewards of their gold assets by allowing Rusoro to manage their projects.

 

Gold Reserve shareholders must now decide if they want 100% of nothing or 30% of Venezuela’s biggest producing and fastest growing gold company. Rusoro has proven they can quickly get permits and solve logistical problems where other well seasoned mining companies could not.

 

There are very few undeveloped large-scale gold deposits as you’ll find in Bolivar State in Venezuela. Venezuela's goldfields are where South Africa's were 125 years ago – just getting started. Rusoro is the recognized consolidator for major gold mines. Gold Reserve’s management might stay in denial about their ability to move Brisas forward but I think Gold Reserve’s investors will see the opportunity and Rusoro will eventually bring the Brisas into production.

 

As I’ve been stating for months, the only way private investors can profit from the vast gold wealth in Venezuela is by investing in Rusoro Mining.

 

ENDS

 

Ok so he's a rampant RML bull :rolleyes: But his thoughts seem to be in-line with the current scenario building. ;)

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To add a little understanding to the Venezuala mining scene and why RML are interested in GRZ. Note the closeness of KRY too ;)

 

RML_projects.gif

 

Whilst the article is a little dated, the El Calleo claims map also shows the near vicinity of choco 10 Isidora acquired from Hecla to GRZ

 

ElCalleoClaimsMap.jpg

 

http://www.metalsnews.com/featured.aspx?ArticleID=222

 

Agapov was supposedly quite coy in London and didn't give away much inclination as to what was happening, but found this little snippet interesting in light of recent events from an article by Roy Carson

 

http://www.pr-inside.com/rusoro-they-ve-be...-us-r943828.htm

 

Crystallex and Las Cristinas: would you like to give me a rundown on your thoughts in that regard?

 

"Well it's amazing, because last year. or the year before, when we did a road-show for financing or something else, the first thing every hedge fund or investment bank asked our (Rusoro) president, George Salamis, was about was Las Cristinas. Like, I guess, people are so anxious and it's been going on for so many years. I think it will be resolved quite soon ... how it will be resolved is completely up to the (Venezuelan) government, but Bob Fung is a veteran of Venezuelan mining and so is Doug Bellanger. So how it will be worked out, I have no clue. As you know, we tried to buy Gold Reserve in late August but the bid was unsuccessful. They think they'll get the permit themselves! There was, however, a press release recently where they said they might go somewhere else, some other businesses elsewhere, NOT in Venezuela. Crystallex, I don't really know, I don't know their cash position, but they have an operating contract and maybe they will come to terms with the government."

 

If Gold Reserve simply walks away, the government could rescind their concession! Would that then make Las Brisas del Cuyuni accessible to Rusoro?

 

"Oh, if they were to walk away ... yes, if they surrendered their concession it would become the property of Mibam and then it's up to Mibam what they want to do with it, to do it themselves or make it a joint venture with some company."

But, as regards Crystallex, you mentioned that it depends on how much money they have to go forward with ... is it a wait and see situation there?

 

"I think Kilometer 88 is a wait and see situation in general!"

 

While there is perhaps an imagery portrayed in some minds of a Russian Svengali hanging around in the wings with a knife ready to slit Crystallex' and/or Gold Reserve's throats, Andre Agapov says "Unless what you're trying to say is that there is a Russian company wanting to buy up both companies ... I don't think a Russian or international mining company would wait until the government repossesses them. The next logical move would basically be a corporate transaction. At this level the resource is still there and the price of gold is around $800. Let's put it this way ... super-economically viable ... Gold Reserve trades at 90% discount and Crystallex' market cap is $20 million? So, essentially, for under $100 million in a combined market cap, you own 40 million ounces. Where else in the world is this possible?

 

"Oh no, we're not going to be aggressive or pressing, or asking, government to do anything in our behalf ... this is absolutely clear ... there's no need for that. I think that time will resolve all the issues and in this particular case it will not take ten years. I need to emphasize that I'm NOT part of the management of Gold Reserve and/or Crystallex, I'm just an unrelated third party, so it is my personal opinion ... maybe they're already in talks with someone, how would I know?" ;):lol::lol:

 

looking ahead

So you're looking at Kilometer 88 rather than simply Las Cristinas/Las Brisas because Kilometer 88 is the expansive reserve very much moreso than Las Cristinas/Las Brisas?

 

"The reason I am mentioning it is because we have a group of concessions of our own in that area. That area is fantastic and it's important to stress that without any acquisitions in Venezuela, and growing the company organically, the potential is incredible. All that El Choco (which we bought from Gold Fields) needs for growth is just a larger mill and we could easily triple production, which the mine allows, and of course San Rafael and El Placer ramps go into production in 2009 and, with the Isidora mine, it will take us to a different level in 2009 ... maybe up to 10,000 ounces more ... so its incredible! Our goal for 2009 is to produce close to 200,000 ounces and in 2011 to produce half a million ounces with projects we can afford."

 

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If only the markets were not so red, mind this red looking better if you can stomach the play.

 

All over the net yesterday's story is catching on from Bloomberg, here's the Russian version, surprisingly unbias view!

 

"Russian company to run Venezuela’s biggest gold mine 15.01.2009

 

Russians gained access to a world largest gold mine Las Cristinas located in Venezuela, reports the Kommersant newspaper. The Venezuela’s government and Rusoro Mining Company formed a joint venture named Venrus to develop the gold field with estimated reserves of 35.2 million ounces.

 

However, there is an unsolved dispute concerning the license to operate the gold mine, currently owned by Canadian Crystallex International.

 

Crystallex invested US$114 million in the project and fully completed engineering works, when in November of 2008 the Venezuela’s government announced Las Cristinas is to be nationalized. The company expected to launch production of 252 thousand ounces per year in 2010".

 

http://www.russia-ic.com/news/show/7671/

 

Few google searches and you can come up with quotes from Chavez making plans with the Venrus to develop this project jointly. If i was a KRY holder i'd be a bit miffed and concerned, but no prizes for guessing the likely favourite ;)

 

All this on top of more positive enough drilling news of record production and record low cash costs at $347

 

Rusoro's President, George Salamis noted, "Our stated goal was to be cash positive at the Choco 10 mill in 2008 and to do that for the full quarter at year end is both exciting and a tribute to Rusoro's operations team whose diligence has resulted in the operations reaching these milestones. To have achieved these results is a testament to the Company's ability to successfully consolidate gold assets in Venezuela and successfully turn them around by increasing efficiency and dealing with issues that plagued the operations under previous management. We will continue with a number of initiatives that are on-going and the Company believes that it can maintain and even further reduce some operational cash costs at the mines."

 

Rusoro CEO, Andre Agapov stated, "We are delighted with both our operational results and with the receipt of the Increible 6 approval. With the Choco 10 mill reaching these operational milestones and our plan to bring the Increible 6 and San Rafael / El Placer mines on-stream over the next year we intend to continue to execute our production growth strategy to the benefit of our shareholders."

 

 

http://www.rusoro.com/s/News_Releases.asp?ReportID=334248

 

 

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SAME OLD STORY, SAME OLD RHETORIC

As Chavez sounds off yet again on Las Cristinas, Las Brisas, Gold Reserve may sell

 

As Hugo Chavez once again encourages expropriation of gold projects, Gold Reserve said it may consider selling Las Brisas to the Venezuelan Government--at the right price.

Author: Dorothy Kosich

Posted: Thursday , 15 Jan 2009

http://www.mineweb.net/mineweb/view/minewe...6&sn=Detail

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SAME OLD STORY, SAME OLD RHETORIC

As Chavez sounds off yet again on Las Cristinas, Las Brisas, Gold Reserve may sell

 

As Hugo Chavez once again encourages expropriation of gold projects, Gold Reserve said it may consider selling Las Brisas to the Venezuelan Government--at the right price.

Author: Dorothy Kosich

Posted: Thursday , 15 Jan 2009

http://www.mineweb.net/mineweb/view/minewe...6&sn=Detail

 

Very apt Conrad, i do wonder whether RML would be better off concentrating on existing projects and looking elsewhere possibly? It seems unlikely though and i suspect others may tire of the attrition of delays being forced on them, most probably for financial reasons, well that could be another ploy.

 

The real long term risk to RML would be Chavez's regime for whatever reason goes, then the venrus relationship could go with it!

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Very apt Conrad, i do wonder whether RML would be better off concentrating on existing projects and looking elsewhere possibly? It seems unlikely though and i suspect others may tire of the attrition of delays being forced on them, most probably for financial reasons, well that could be another ploy.

 

The real long term risk to RML would be Chavez\'s regime for whatever reason goes, then the venrus relationship could go with it!

 

 

the time, they need to initialize a JV with Chavez (or not) is the important part

 

43760803dg8.jpg

 

 

VIDEO interview with Venezuelan gold mining union leader Manuel Montiel -- total 15\' 54\" in two parts!

http://www.pr-inside.com/video-interview-w...ld-r1013896.htm

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From a endeavour financial thread, edr.to could be a good way to buy into this story.

 

Endeavour Financial's Banner Year

By James West

Thursday, January 15, 2009

 

Endeavour Financial Corp (TSX:EDV) shares have suffered along with the rest of the merchant banking sector that is focused on resources, but that hasn’t stopped them from paying the monthly dividend, which at the end of December 2008 was $0.03 a share – that’s 36 cents a year or 18% yield. The company remains committed to its monthly dividend policy for now.

 

Endeavour is heading into an aggressive growth year. While other merchant banks sit on their hands adopting a wait-and-see attitude, Endeavour is preparing to capitalize on an environment where opportunities are priced attractively, and the challenge of financing them in the current environment is no cause for hesitation.

 

The company is in the process of raising CA$100 million by way of short form prospectus, the proceeds of which it will use to “make investments in the natural resource sector”.

 

The offering is aimed at financial institutions and will not be made available on a retail basis. Speculation in other business press calls into question the advisability of such a move in the current environment, but its the use of proceeds that matters.

 

Endeavour typically acts as the finance partner for its portfolio of core investments, which are usually companies in which it already owns a substantial interest.

 

Cash is king in this market and $100 million could buy a huge amount of production or proven ounces in the ground. Many acquisition targets – especially in the junior sector – are trading at pennies on the dollar, need cash – and other than the major mining companies, nobody else has money – except Endeavour.

 

Endeavour could also use that money to fund expansions of current clients, like Rusoro and their Choco 10 mine in Venezuela, which is going from 100K to 300K oz a year production over the next few years.

 

(Not that Rusoro is a penniless orphan. The company just announced record quarterly gold production, record low cash costs, and a record production month from its existing operations in Venezuela, producing 38,868 ounces of gold at a cash cost of US$358 per ounce.

Rusoro is expected to produce between 120,000 and 150,000 ounces in 2009. The opportunity before Rusoro, and by extension, Endeavour, is the establishment in 2009 of a Venezuelan gold mining major with a minimum of 45 million ounces of gold in reserve. )

 

Nevsun would be another example – Endeavour is helping them raise funds to put their high grade Bisha deposit into production. Capex is falling hard and fast right now, so there is great possibility to create value for Endeavour shareholders in a situation like this. Cash buys you more everyday right now.

 

Given gold’s performance during the last decade relative to other asset classes, raising funds for such an “endeavour” should not be problematic.

 

The other key point to bear in mind is that Endeavour Financial’s exclusive advisor is Fiore Financial, the private investment arm of legendary financier Frank Giustra, who has been the main force behind some of this decade’s biggest growth stories in the resource sector – Wheaton River Minerals, Northern Orion Resources and Urasia Energy.

 

In such illustrious company, and with such opportunity, who wouldn’t want to participate in Endeavour Financial’s financial endeavours? Nobody else will have capital. Great projects can now be bought cheap. As usual, Mr. Giustra’s timing is impeccable. This is the man who walked away from the mining industry 10 years ago, at the top, and came back to it in 2001, at the bottom. I’ll put my money with him.

 

 

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From a endeavour financial thread, edr.to could be a good way to buy into this story.

 

Think they have enough of their own story, but thanks for link, had seen it since Dr.B flagged them up.

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Think they have enough of their own story, but thanks for link, had seen it since Dr.B flagged them up.

 

Endevour helped with the launch of Rusoro, I believe. I would imagine that Endevour hold a fair bit of their stock. EDR are currently trading at about 20% of book value of their stock holdings. They also are currently paying a monthly dividend (yielding around 18%)

 

Maybe worth a look http://www.endeavourfinancial.com/s/Home.asp

 

 

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Rusoro Mining Ltd. (TSXV:RML). Miner. Down seven cents, or 9.46 per cent, to 67 cents on 7,517,218 shares. The Ontario Superior Court blocked a hostile takeover bid by Rusoro Mining for Gold Reserve Inc. (TSX:GRZ) because the company had access to confidential information it should not have had. The firm immediately withdrew its offer for Gold Reserve because of the court decision.

 

 

DEAL DERAILED

Rusoro won't resurrect bid for Gold Reserve

 

Russian run, but Canadian based, gold miner Rusoro does not plan to re-bid for Gold Reserve. Meanwhile it expects its Choco 10 mill output to rise to 400,000 oz/year.

http://www.mineweb.com/mineweb/view/minewe...5&sn=Detail

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DEAL DERAILED

Rusoro won't resurrect bid for Gold Reserve

 

 

http://www.mineweb.com/mineweb/view/minewe...5&sn=Detail

 

Did say some time back wonder whether they would be better off concentrating on their own production. See if that's right soon enough. The elections coming up may dictate further twists to this saga further down the line and i somehow don't think this is the last of it.

 

Be interesting to see what GRZ shareholders think of the robust defence later in the year.

 

EDIT: Price much more stable on significantly less volume today.

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Well, well.....bit more speculation or is it subterfuge ?

 

VHeadline Venezuela News: Crystallex International Corporation (KRY) executives are meeting in Toronto later today, Friday, to discuss a possible merger with Vancouver-based Russian-owned Rusoro Mining Ltd. to move ahead on the exploitation of the giant Las Cristinas gold mine in southeastern Venezuela.

 

http://www.vheadline.com/readnews.asp?id=77641

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April 29, 2009

 

Rusoro Expects Production To Top 500,000 Ounces In 2012 Without any Further Acquisitions

 

By Charles Wyatt

 

When last we wrote about Rusoro Mining it was making a bid for Gold Reserve, another company operating in Venezuela, whose Brisas mine had been put on hold since Hugo Chavez, no lover of North Americans, revoked the construction licence. The difference between the two companies is that Rusoro is looked on as a Russian company and Venezuela and Russia continue to strengthen political and economic ties. It has been operating in Venezuela since 2003 with the Agapov family in control, has lived up to all its promises, and last year was declared partner of choice by the Chavez government, a declaration of mutual regard consummated by the formation of the Isidora/Camorra ‘mixed enterprise’ company for exploiting any other projects in the country. Rusoro had already made a friendly approach last year before it went hostile, but Gold Reserve wriggled off the hook as a result of a ‘poison pill’ defence allowed under Canadian regulations.

What was quite clear was that the directors of Gold Reserve were more interested in their own jobs than the interests of their shareholders, but this will not be the end of the story. As George Salamis, president of Rusoro points out, his company has plenty of work on its hands so it is not in a hurry to acquire Gold Reserve. It will monitor the situation and as things become more difficult for Gold Reserve in Venezuela it may make another move, but the price offered is likely to be lower.

 

When that happens the following statement from the board of directors of Gold Reserve could be the basis for some interesting complaints from said shareholders: “We are pleased”, said Gold Reserve’s board, “that Rusoro has withdrawn its offer and appreciate the support of our shareholders throughout this process. As we have said, we have valuable assets and are committed to ensuring that our shareholders receive full value for their investment in Gold Reserve".

 

It is the proven ability of Rusoro to work with the Venezuelan government that gives it its edge and was the one of the reasons why Peter Hambro Mining, the UK company with a strong Russian partner producing gold in Russia, took a stake in the company last year. The other main reason is clearly the operating potential of the company. In 2008 it produced 100,000 ounces of gold. This year it is looking for over 170,000 ounces, and by 2012 it expects to be producing at an annual rate of 540,000 ounces. The Choco 10 mine is the mainstay of production at the moment. Production there shot ahead in the last quarter of 2008 as mill performance improved.

 

The outcome was 38,868 ounces of gold at a cash cost of US$358/oz. George Salamis is confident that it can now maintain a production rate of 14,000 ozs/month which is the basis for the production target for this year. That last quarter of 2008 was also the first full quarter of positive cash flow from operations. But production will boosted further when Increible 6 comes on stream in the second half of this year. Rusoro acquired Choco 10 from Gold Fields, still a significant shareholder in the company. Gold Fields had carried out a scoping study prior to the sale, indicating that production could rise to 350,000 ozs/year based on a gold price of US$550/oz. Rusoro is now evaluating production potential well in excess of 350,000 ozs using higher throughput rates with feed being contributed by Increible 6 and the Isadora mine. The result of the scoping study will be announced shortly and there is every reason to believe it will be positive. In this case a feasibility study will be initiated later in the year.

 

Meanwhile a new road has been built from Increible 6 to Choco 10, eight kilometres away, and material will be trucked there for processing. Surface oxides will be mined first and they are expected to contribute between 1,000 and 2,000 ozs gold a month to production until the expansion of the Choco Mill is completed.

 

Isadora, which was acquired from Hecla Mining, is Rusoro’s newest acquisition and George describes it as a gem, with mine grades in excess of 30 g/t. The ore from Isadora is being processed at Choco 10, which is only 6 kms away and an estimated two years of ore has been developed for future production. An exploration programme there is ongoing as there is considered to be plenty of scope to boost resources.

 

It’s worth noting, however, that Rusoro has resources of 7.1 million ozs in the measured and indicated categories and another 7.07 million ozs inferred to give a total of 14.17 million ozs of which 2.02 million qualify as reserves.

 

Next up will be the SREP mine where an underground ramp to access the main mineralised bodies will be completed later this year. A decision will have to be taken as to where to process the ore from SREP, with Emilia, Camorra and Choco 10 all in the frame. A study is underway.

 

The wild card, however, is the relationship with the Venezuelan government and what acquisitions may result from it. One possibility has to be the Las Christinas mine currently owned by Crystallex and that would take Rusoro well up the mid-tier league.

 

 

Gee thanks for nice spike Minesite :lol:

 

 

 

 

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Rusoro Receives Preliminary Assessment for Choco 10

 

http://finance.yahoo.com/news/Rusoro-Recei...87969.html?.v=1

 

".......the results of the PA are highly encouraging and Rusoro remains committed to bringing the project to feasibility by Q2, 2010. The Study shows that over the first three years of production, an expanded Choco 10 Milling Complex will average 545,500 oz Au/yr from 7,300,000 t/yr treated at an average head grade of 2.58 g/t Au, with cash costs averaging $US 331/oz over the life-of-mine (LOM)."

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Venezuela cancels El Pauji concession on Gold Reserve's Brisas project

Tuesday , 26 May 2009

 

http://www.mineweb.com/mineweb/view/minewe...5&sn=Detail

 

...Venezuela's socialist President Hugo Chavez said earlier this year that the gold industry should be controlled by the state. He said the KM88 district would be exploited by a joint venture between the state and a Russian mining company...

...One possible beneficiary of the decision on the El Pauji concession is Russian-owned Canadian miner Rusoro (RML.V: Quote), which is interested in developing the KM88 area and last year launched a failed takeover bid for Gold Reserve. Rusoro declined to comment on the news...

 

B) B) B)

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