R.V, Romarco Minerals, last at $0.32, looks like it wants to bust higher.
Romarco plans to drill 85,000 metres at Haile
2009-02-05 07:15 PT - News Release
Diane Garrett
ROMARCO - MORE DRILLING PLANNED AT HAILE
Romarco Minerals Inc. has released its 2009 exploration plans and project development schedule for the Haile gold mine in South Carolina.
Exploration plans
Romarco's initial plan was to drill 22,000 metres in 2009, nearly three times the drilling completed in 2008. However, now the company is making plans to increase this year's program to 85,000 metres through the addition of a second rig and double shifts on each rig. Two-thirds of the drilling this year will be step-out exploration holes in known mineralized areas adjacent to the deposits. The balance of the drilling will be infill to convert measured and indicated resources into reserves.
To date, the company has focused its exploration in the highly prospective north resource area, which remains open in three directions and at depth. Feasibility study related mine design has also shown substantial potential targets exist on other areas of the property. These targets are adjacent to the South Pit (to the north and west of the current reserve), the Snake Pit on the east side of the property, mineralized potential at depth, as well as targets identified on the newly acquired land parcels along strike. The current land package hosts 3.2 kilometres of strike length.
A total of 52 holes were drilled in 2008 with assays received and reported for 45 holes to date. Of those 45 holes:
87 per cent returned more than three grams per tonne gold over the mineralized interval;
94 per cent returned more than one gram per tonne gold over the mineralized interval;
60 per cent returned more than 30 metres of 2.5 grams per tonne gold;
25 per cent returned more than 30 metres of 4.0 grams per tonne gold.
Development plans
Romarco's recently announced Feasibility Study (see press release issued in Stockwatch dated Feb. 3, 2009) demonstrated the robust economics of Haile. Optimization of the project will occur over the next quarter after which detailed engineering of phase 1 (7,000 tons per day) shall commence. The success of last year's drilling combined with the team's optimism about future exploration at Haile has prompted the consideration of a phase 2 (additional 7,000 tons per day) process facility.
The development plan is to commence detailed engineering concurrently with securing the remaining permits. Coincident with obtaining permits, plant construction will start early in the second quarter of 2010 with project completion targeted for midyear 2011. Even after gold production begins at Haile, the company anticipates exploration drilling to continue for several years.
The feasibility study was based on a proven reserve of 7.3 million tonnes averaging 2.52 grams per tonne gold and a probable reserve of 10.5 million tonnes averaging 2.05 grams per tonne gold. The combined proven and probable reserve as of October, 2008, is 1.3 million ounces of gold at 2.24 grams per tonne. The corresponding gold resource that formed the basis for the reserve and feasibility study is detailed in the table below. A cut-off grade of 0.514 gram per tonne gold was used for resource. The measured and indicated resource increased by 2.22 million tonnes from the last reported estimate (see press release issued in Stockwatch dated Sept. 4, 2008) due to inclusion of assays from six additional drill holes. This resulted in an increase in the proven and probable reserve as well as an increase in grade from 1.97 grams per tonne to 2.24 grams per tonne.
A revised reserve and resource estimate will be available in March, 2009 -- this update will include drill results received from October, 2008, through January, 2009.
HAILE GOLD MINE PROJECT
LANCASTER COUNTY S.C.
ESTIMATED MINABLE RESERVE
Tonnes Gold Contained
grade gold
(000s) (g/t) (000 oz)
Proven reserve
0.015 oz/t (0.343 gram per tonne) 8,331 2.28 610
0.020 oz/t (0.514 gram per tonne) 7,282 2.52 590
Probable reserve
0.015 oz/t (0.343 gram per tonne) 12,290 1.84 729
0.020 oz/t (0.514 gram per tonne) 10,529 2.05 695
Proven and probable reserve
0.015 oz/t (0.343 gram per tonne) 20,621 2.02 1,338
0.020 oz/t (0.514 gram per tonne) 17,811 2.24 1,285
Inferred resource within designed pit
0.015 oz/t (0.343 gram per tonne) 4,883 1.36 214
0.020 oz/t (0.514 gram per tonne) 3,912 1.55 195
HAILE GOLD MINE PROJECT
LANCASTER COUNTY S.C.
ESTIMATED MINERAL RESOURCE
Tonnes Gold grade Contained
(000s) (g/t) Gold (000 oz)
Measured cut-off (oz/ton)
0.010 12,588 1.737 703
0.015 9,973 2.082 668
0.020 8,376 2.367 637
Indicated cut-off (oz/ton)
0.010 26,158 1.216 1,022
0.015 18,616 1.537 920
0.020 13,814 1.866 829
Measured and indicated cut-off (oz/ton)
0.010 38,746 1.385 1,725
0.015 28,588 1.727 1,588
0.020 22,191 2.055 1,466
Inferred cut-off (oz/ton)
0.010 27,547 0.858 760
0.015 16,877 1.136 616
0.020 11,232 1.409 509
The company will be filing a National Instrument 43-101 technical report covering the feasibility study on SEDAR in the very near future. Please visit the company's website for the latest information.
This press release has been reviewed and approved for release by Ken Brunk, PE, chief operating officer for Romarco, and Tom Kilbey, professional geologist, senior geologist for Romarco, each being a designated qualified person under National Instrument 43-101. |
