JOHANNESBURG (miningweekly.com) - Junior gold-miner Rusoro Mining on Tuesday announced a 78% increase in measured and indicated resources to 8,3-million ounces of gold for its Choco 10 deposits in Venezuela.

In 2009, the operating Choco 10 mine in the El Callao mining district produced 126 000 oz of gold.

The project is currently the subject of a feasibility study evaluating an expansion of the Choco operations to 20 000 t/d, which would result in a production average of 558 000 oz/y of gold at a cash cost of $331/oz over a 12 year life-of-mine.

"Choco 10 remains Rusoro'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," said Rusoro exploration vice-president Greg Smith.

The increase in the Choco project's measured and indicated resource, resulted from a 138% increase in tons and a 25% decrease in grade.

The updated resource estimates included new drill data from 406 new drill holes, bringing the total number of drill holes on the project to 2 464.

The Choco 10 mineralisation consisted of a series of interrelated deposits distributed over an area 3-km long by 1-km wide. The current mining and milling operations, averaging about 5 000 t/d and 6 000 t/d, are active on three of the four deposits; Coacia, Rosika, and Pisolita.

Smith said that the feasibility study that was under way would evaluate the viability of a significant expansion at the Choco mine and Choco mill and would incorporate the nearby Increible 6 gold deposit. "The feasibility study could model a fourfold expansion at the Choco operations, following the positive preliminary assessment completed by Micon International."