Romarco Minerals Inc TSX:R announced assays from its Haile Property in South Carolina. Results include 45.8 g/t gold over 23 metres (including 111.5 g/t over 6.1 metres), 7.2 g/t over 3.6 metres and 0.8 g/t over 3 metres.
President/CEO Diane Garrett tells ResourceClips.com, “The Haile Gold Mine has been around for about 200 years, mined off and on over that time. Technology—specifically fine-grinding technology—is what has now made this area viable for gold production. Romarco picked up on that and came in here about four years ago and started drilling deeper and realized that this is a large system that’s very amenable to current technologies, particularly in a high gold-price environment. It’s an area that’s like Nevada was in the 80s and pretty much has been forgotten about in exploration plays for gold.
“Both sets of results [July 21 and July 25] were absolutely spectacular. Incredibly high grades, very shallow, long intercepts. Returning these kinds of assays is an indication to the market that there’s a lot of high-grade potential that exists at Haile, and after three years of drilling it hard, these holes rank in the five of the best we’ve ever drilled on the property. So we’re very excited about what we’re seeing.
Incredibly high grades, very shallow, long intercepts. Returning these kinds of assays is an indication to the market that there’s a lot of high-grade potential that exists at Haile.—Diane Garrett
“We’re drilling 172,000 metres this year and the intent of the drill program is to increase overall reserves and resources,” continues Garrett. “Haile’s still open in all directions and at depth, so we’re just going to keep drilling to make it bigger. We do have plans to put it into production and we’re in the midst of the permitting process right now.
“We’ve been beaten up a bit over the last few months. It’s mainly because we’ve been having delays in our permitting. We’ve been delayed a year, and that always tends to make the market nervous. We’ve had a couple of shareholders that have relinquished their positions, and that came on at a time when the markets were not really capable of absorbing it. Seventy to 75% of our institutional shareholders are still in, they have not reduced their positions. In fact they see this as a fine opportunity. And we’re still given a very high value per ounce of gold vis-a-vis our peers. But a lot of the gold stocks have come off 20% to 30% since just after the new year and we’ve been hit that way. Also, I think the market anticipates that we’re going to be doing a financing—they know we need to build the project—and it’s typical of the market to put a lid on your stock until you get the financing behind you.
“We expect to have our permits in hand by the end of 2012 and then we would start breaking ground and construction in early 2013. That would have us pouring gold in early 2014.
“South Carolina is a great environment to work in,” Garrett adds. “There are over 500 active mines today, but no metal mines—there’s been no metal mine production in almost 10 or 12 years. The state and the Corps of Engineers are very knowledgeable; they’ve expedited our drilling permits and we’ve got a good working relationship with them. It’s a great place to do business.”
She concludes, “The project has gone much faster than any of us would have thought four years ago! Coming in four years ago, if you had told me we’re going to be having over a million ounces a year—that’s almost unheard of. It’s a property that keeps giving back. It’s got tremendous potential and we’re just so excited to have been the first ones on the scene down here. And we think the work we’ve done will demonstrate that Haile is basically what Nevada was in the 80s, and it’s going to bring a lot of companies to this area. The Slate Belt is chock full of minerals and there’s a lot of potential waiting there.”
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