Romarco to Focus on Pinos, Haile-Production Oriented
Tuesday May 29, 8:15 am ET
biz.yahoo.com
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--May 29, 2007 -- ROMARCO MINERALS INC. (CDNX:R.V - News) is pleased to report additional details and plans for the Haile Gold Mine acquisition from Kinross Gold Corporation and other landowners in Lancaster County, South Carolina.
The Company maintains its corporate objective "to aggressively pursue producer status through development of its own projects and through acquisition". The Company has taken great strides to meet that objective with the acquisition of the high grade Pinos Gold District in Mexico and the recently announced acquisition of the Haile Gold Mine (South Carolina) from Kinross Gold Corp. and other parties. These two acquisitions provide a platform for advancing the Company to a new level with production opportunities on the horizon.
Haile Gold Mine - Acquisition Cost US$7 per ounce of gold
The historic resource of the Haile Gold Mine and surrounding property is 1.54 million contained ounces of gold of which 761,000 ounces are located on the Kinross ground. The per ounce payments to Kinross are on proven probable reserves identified in excess of 1 million ounces of gold. The previous historic reserve (Amax, 1994) indicated a total proven probable reserve of 780,100 ounces of which 441,600 occur on the ground controlled by Kinross. Therefore, assuming the historic resources are verified and established as reserves, an additional 558,400 proven probable ounces can be identified by Romarco before the per ounce payments to Kinross take effect. The historical reserve by Amax was completed prior to NI 43-101 and therefore, is being treated as a historical resource by the Company.
Historic Resource of Deposits
Contained
Deposit Ore Tonnes Au g/t Au Oz
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Mill (Kinross) 2,985,274 3.30 352,454
Haile (Kinross) 1,903,092 2.40 162,728
Snake 4,082,843 3.51 511,805
Red Hill (Kinross) 2,341,419 2.15 180,463
Ledbetter 1,377,082 3.51 172,856
Small 974,562 1.28 44,665
Champion 715,408 1.87 47,587
Chase Hill (Kinross) 893,322 2.08 66,267
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Total 15,273,002 3.10 1,538,825
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The acquisition cost of the Haile Gold Mine and surrounding properties is approximately US$4 per ounce when calculated using the total contained gold resource of 1.53 million or approximately US$7 per ounce when calculated using the historic gold reserve of 780,000 ounces (Amax, 1994). The purchase price includes the dollar value of the Romarco shares to be issued to Kinross, the financial assurance bonding and the lease payment to the private parties as reported in the previous press release.
Haile: Near-term News and Plans
The Company has engaged Behre Dolbear of Denver, Colorado to complete an evaluation study of the Haile Gold Mine which will then be used to prepare a NI 43-101 report.
Soon after the transaction closes, the Romarco technical team will be conducting activities to move the resources into the reserve category per NI 43-101 requirements. Romarco's Q.P. on the Haile Gold Mine is Tom Kilbey.
The Company has secured additional land in the area from private parties in the form of a two year lease and an option to purchase the land. The first year lease payment is US$225,000 and the second year US$250,000.
All agreements will close simultaneously.
Cautionary note: a qualified person has not done sufficient work to classify
the historical estimate as current mineral resources, the issuer is not
treating the historical estimate as current mineral resources and the
historical estimate should not be relied upon.
Pinos Gold District Update
The Company has received partial assays from the last drilling and sampling program. It is anticipated that results will be reported within three weeks. The most recent sampling program accessed the 70 meter and 100 meter levels of the underground workings. Numerous veins were identified at the lower levels and have recently been sampled with assays pending. These veins do not outcrop on surface and were previously unknown to Romarco. During the summer 2007 a comprehensive mapping and sampling program will be conducted to prepare a 3-D model of the property, underground workings, drill assay data and channel sample assay data. This information will be used for Romarco to target the most prospective areas for additional sampling, drilling and test mining.
Romarco is an advanced stage exploration company engaged in the acquisition, exploration and development of precious metals mineral properties. Romarco's management and Board of Directors are comprised of senior mining executives who have extensive experience identifying, developing, financing and operating precious metals deposits in the Americas. It is Romarco's goal to become a producer through development of its own projects as well as through the acquisition of advanced stage projects. Romarco currently has five exploration projects in Nevada, and one gold district in Mexico.
ON BEHALF OF ROMARCO MINERALS INC.
Diane R. Garrett, President and C.E.O.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release, which has been prepared by management.
Contact:
Contacts:
Romarco Minerals Inc.
Diane Garrett
President and C.E.O.
(830) 634-7489
Email: dgarrett@romarco.com
Romarco Minerals Inc.
Mr. Ralf Langner
C.F.O.
(604) 688-9271
(604) 688-9274 (FAX)
Email: rlangner@romarco.com
Website: romarco.com
Source: Romarco Minerals Inc. |
