Sunday 11th December 2016

Resource Clips


Posts tagged ‘Romarco Minerals Inc (R)’

July 31st, 2015

Mining consolidation: OceanaGold to swallow Romarco in $856-million deal Stockhouse
Low gold price could boost mining acquisitions GoldSeek
Tesla powerwall priced for impact, not profit NAI 500
Luisa Moreno explains why metallurgy is so important with critical metals projects Streetwise Reports
How do you get a $1-million portfolio? Equities Canada
Minerals hold up in slow oil and gas recovery Industrial Minerals

Romarco reports South Carolina Gold Assays up to 42.4 g/t over 13.5m

April 11th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningRomarco Minerals Inc TSX:R announced assays from the North Mustang and Palomino zones of its Haile Gold Mine project in South Carolina. Results include

42.4 g/t gold over 13.5 metres (including 318.5 g/t over 1.5 metres)
4.6 g/t over 33.5 metres
6.8 g/t over 55 metres
4.1 g/t over 21.3 metres

The Haile Gold Mine has measured and indicated resources of 4.04 million ounces gold and inferred resources of 801,000 ounces.

View Company Profile

Read more about Romarco

Contact:
Diane Garrett
President/CEO
210.621.4200

or Dan Symons
VP Investor Relations
416.367.5500

by Ted Niles

Romarco reports M&I 4M oz Gold at Haile, South Carolina

February 7th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningRomarco Minerals Inc TSX:R announced an updated resource estimate for its Haile Gold Mine in South Carolina. The project is now estimated to have measured and indicated resources of 4.04 million ounces gold and inferred resources of 801,000 ounces. This represents a 29% increase to the company’s previous measured and indicated estimate.

President/CEO Diane Garrett commented, “Our drilling program for 2011 was a success on all fronts. We cleared the areas we needed for condemnation, converted much of our inferred to measured and indicated, made significant increases in our resources at Haile and had great success in our regional exploration away from Haile. These were our four goals for exploration for the year and our team hit a grand slam. We learned a lot about this very complex system, and it will pay off in continued exploration at Haile and in the region.”

View Company Profile

Read more about Romarco Minerals

Contact:
Diane Garrett
President/CEO
210.621.4200

or Dan Symons
VP Investor Relations
416.367.5500

by Ted Niles

Romarco reports SC Gold Assays as high as 43.1 g/t over 21.3m

January 20th, 2012

Resource Clips - essential news on junior gold mining and junior silver miningRomarco Minerals Inc TSX:R announced results from its Haile Gold Mine in South Carolina. Assays include

43.1 g/t gold over 21.3 metres
11.4 g/t over 62.3 metres (including 35.2 g/t over 14.9 metres)
8.4 g/t over 41.1 metres
4 g/t over 9.1 metres
6.8 g/t over 57.9 metres
1.3 g/t over 62.5 metres
3.4 g/t over 84.7 metres
3.9 g/t over 22.9 metres

President/CEO Diane Garrett commented, “This new hole, RCT-83 at Snake, is a perfect example of a multi-purpose hole at Haile. We were able to infill the upper portion of the mineralization and gain confidence in the quality of the resources, and we were also able to step-out at depth and discover new mineralization.”

View Company Profile

Read more about Romarco Minerals

Contact:
Diane Garrett
President/CEO
210.621.4200

or Dan Symons
VP Investor Relations
416.367.5500

by Ted Niles

Underperforming? Hardly

November 22nd, 2011

Romarco Aims For a 2014 Gold Pour

By Ted Niles

To say that Romarco Minerals Inc TSX:R is making the best of a bad situation is true enough but misleading. The US Army Corps of Engineers’ July requirement of an Environmental Impact Statement on the Haile Gold Mine was a nuisance, no question, but it doesn’t affect the fundamentals. As President and CEO Diane Garrett says, “The project still stands, in my opinion, as one of the most significant and highest quality assets in the industry. We’re in a great jurisdiction, and the grade is almost twice what it is with any other open pit in North America or anywhere.”

Romarco is taking full advantage of the 12-month delay. “We’ve got a lot of guys on the team that aren’t too disappointed,” Garrett remarks. “We spent the first half of this year doing infill drilling because we thought we’d be mining at the end of the year. When we got the EIS news, we focused everything on step-out drilling. We’re spending a lot of time drilling on Horseshoe and Palomino.”

Romarco Aims For a 2014 Gold Pour

An historic producer dating back to 1837, the Haile Gold Mine is located in Lancaster County, South Carolina. Its current resource of 3.1 million ounces gold measured and indicated, 1.1 million ounces inferred—for which a February feasibility study estimated capital costs of $275 million and operating costs of $379 per ounce—does not include the Horseshoe or Palomino zones. Results from Horseshoe continue to demonstrate exceptional promise, with September 14 assays of

  • 10.5 grams per tonne gold over 32.9 metres
  • 3.4 g/t over 47.6 metres (including 12.7 g/t over 6.1 metres)
  • 6.9 g/t over 19.8 metres
  • 2 g/t over 57.9 metres (including 10.1 g/t over 6.1 metres)
  • 4.1 g/t over 26.8 metres (including 8.2 g/t over 10.7 metres)
  • 3.6 g/t over 25.9 metres

November 1 assays of the newly-discovered Palomino zone include

  • 5.5 g/t over 70.1 metres
  • 1.2 g/t over 37.5 metres
  • 2.4 g/t over 21.3 metres
  • 2.9 g/t over 15.2 metres
  • 1.6 g/t over 26 metres

“Palomino is quite spectacular, and that can add a lot of ounces very quickly,” Garrett says of the assays. They certainly must have come as some surprise to CIBC World Markets analyst Brian Quast who downgraded Romarco in July to “sector underperformer” based on his peculiar prediction that “the likelihood of positive news from the drill bit for the remainder of the year is relatively low.”

Garrett explains exactly what proving Quast wrong from the drill bit means to her company. “We’re working to develop the region and to develop the underground. We will continue stepping out and then filling in the areas between the pits in order to further define what we’re now calling the super pit. By the new year, what you’re going to see is overall resource growth. You’re going to see a new reserve out because of the infill drilling, and you’re going to see an underground study out with the resource. All the economics on that will come out just after the new year.”

Permitting is not one of the top five things I worry about on a daily basis —Diane Garrett

Romarco has lost 60% of its share value this year. Granted, the juniors as a whole have been hard hit, but Garrett believes Romarco suffered especially because South Carolina is unfamiliar with the environmental permitting of precious-metals mines. “If it were Nevada, they’d understand how the process works,” she argues. “They’re not familiar with dealing with private land, and they’re not familiar with the Corps of Engineers being the lead agency.”

Haile’s permitting schedule has yet to be set. Her hope is that “before the end of the year the contracting firm will have built the schedule. When people see that, they’ll say, ‘OK, now I know; and I can check that box.’ I think the market is feeling like there’s still plenty of time to come in and out of the stock.”

Meanwhile, Romarco continues to invest. October 19 saw the completion of a $92.6-million financing. Thirty million will be spent on drilling in 2012 (the same amount as 2011, with the same number of drill rigs, 11). Twenty million will be spent on engineering work and $15 million on permits and wetlands mitigation. “We’ll be purchasing other wetlands to replace those we’re taking,” Garrett says.

Garrett concludes, “The hit on the NPV of the project for the one-year delay is about 4%. We also feel a bit vulnerable, given what our share price is. But [while] we’ve got to do this more detailed review of the project, we’ve been given no indications by anybody that we can’t permit. We had our public scoping meeting [October 27], and no one said that they opposed the mine. So, permitting is not one of the top five things I worry about on a daily basis.” Primary investors remain confident. “Seventy percent of our shares are held in 15 institutions in North America and Europe,” Garrett points out, “and they took down the entire financing. That’s really good support.”

Provided the company stays on schedule and has the necessary permits in hand by the end of 2012, construction at Haile will begin 1Q 2013, and Romarco will pour its first bar of gold by 1Q 2014.

At press time, Romarco had 583.8 million shares trading at $0.89, for a market cap of $519.6 million.

Int’l Tower Hill reports Alaska Results as high as 1.56 g/t Gold over 76.2m

November 7th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningInternational Tower Hill Mines Ltd TSX:ITH announced assays from its Livengood Project near Fairbanks, Alaska. Highlights include

1.56 g/t gold over 76.2 metres
(including 8 g/t over 4.6 metres)
1.31 g/t over 74.7 metres
(including 3.11 g/t over 12.2 metres)
3.34 g/t over 30.5 metres
(including 17.27 g/t over 4.6 metres)
0.87 g/t over 106.7 metres
1.04 g/t over 61 metres
0.71 g/t over 85.3 metres
1 g/t over 51.8 metres

Using a 0.7 g/t cutoff, the project has an August 2011 resource estimate of 149 million tonnes grading 1.09 g/t for 5.2 million ounces gold measured, 42 million tonnes grading 1.1 g/t for 1.5 million ounces indicated and 39 million tonnes grading 1.1 g/t for 1.4 million ounces inferred.

CEO James Komadina tells ResourceClips.com, “These results are a compilation of all the summer drilling work, and we wanted this included in the database for our prefeasibility study. That’ll be issued in roughly a month’s time.

“The results indicate that we have an opportunity during some period of the initial mining phase to have grades significantly higher than the life-of-mine grade. When you look at the higher-grade intercepts and the commodity prices, they really do reflect on your payback period and also on the internal rate of return.

“We can usually start drilling in late March or early April,” he adds. “Things tend to get weathered-out by mid-October, late October. We’ve got three rigs that are finishing up some work right now, and probably within the next 10 days or so they’ll de-mob. You don’t get a lot of snow there per se, not the three- or four-foot cover that other regions get.

The results indicate that we have an opportunity during some period of the initial mining phase to have grades significantly higher than the life-of-mine grade—James Komadina

“We’re 70 miles [113 kilometres] north of Fairbanks and roughly 150 miles [241 kilometres] south of the Arctic Circle. The road from Prudhoe Bay [an Arctic Ocean port] to the south has to be kept open 24-7, 365. It runs adjacent to our property. In terms of infrastructure, Fairbanks is a great city to work out of. It’s around 70,000 people, so almost anything we need we can access from there. Also we’re part of the supply chain for Kinross’ TSX:K Fort Knox Mine.

“I think most people underestimate the value of doing a prefeasibility study before feasibility,” Komadina says. “In a PEA, the accuracy is plus-minus 35%. Most PEAs are done on a factored basis—Mine A is of a certain size and costs this much, Mine B is different, and so on. When we issued our PEA in August, we changed our strategic direction. Instead of being a heap leach that gradually transfers into a mill, we decided to go directly into milling. There really aren’t any comparables for this size of operation. We went out and developed capital costs, we got bids for all our major pieces of equipment including the mine fleet. So the PEA was probably more accurate than people would normally expect.

“For a PFS, the accuracy is about plus-minus 25%,” he explains. “When you get to a feasibility study, it’s about plus-minus 15%. And it’s only when you finally issue construction contracts that you’re plus 10%, minus 5% on your estimates. So with the prefeasibility study, you find out what you don’t know. That’s the real benefit. When you walk through a PEA, you find the parameters you would expect to see. With the prefeasibility study, if you see some numbers you don’t like, you get more engineering and technical evaluation. When you finally get to the feasibility study with that plus-minus 15% accuracy, you’ve got hefty technology behind it to say the numbers are sound. I think the prefeasibility study is a necessary step in the development process.”

The company expects permitting to last from early 2013 to mid-2016.

“My entire career has been with seniors—AngloGold NYSE:AU, Gold Fields NYSE:GFI and Newmont TSX:NMC. Far too often the juniors say we’re drilling this year, and we’ll be in production next year. But that doesn’t turn out to be the case. We committed to do an environmental impact statement. It takes about a year to put together an application. It takes about three years to wind its way through the process. When you finally get the decision, that’s the important part. I don’t know if there’ll be many more mines, if any, that get permitted under the National Environmental Policy Act. Typically there are two routes to go, the environmental assessment and the environmental impact statement. If you follow the Romarco TSX:R story, they attempted to permit the mine in South Carolina through an EA. [Read more here.] That didn’t work. The agency told them to do an EIS. Their stock reflected that change in timing. I’d rather tell you what I think the timeline will be, given what we know now,” he says.

“We have a highly experienced management team. We just added Tom Yip. He’s got 25 years’ experience as a CFO. Most of his time has been with Echo Bay and Asarco. We recruited him out of Silver Standard TSX:SSO in Vancouver. Tom Irwin came to us out of Amax and the state of Alaska [Department of Natural Resources], so he knows the permitting side of the business. We brought on Hal Galbraith to be Manager of Mining. He came to us out of Asarco in southern Arizona. We’re about to announce a new general counsel in a couple of weeks’ time. He’ll also be a key individual in permitting. We bring on people who’ve done this work before, so the learning curve is short.

“The forecast is 2016 construction. You have to do detailed engineering before ordering a mine fleet, because a fleet this size is about a year’s delivery and there’s about 100 weeks’ delivery on grinding mills. This sector has such a tremendous demand for engineering skills and this type of equipment. You can’t buy used equipment of this size. Those are things that really impact the schedules.

In conclusion he says, “We’re really happy with the drilling results this year and we’ve also done some geophysical work. Over the course of the winter, we’ll analyze that geophysical package and come up with some new district-wide resource targets that we can drill early next spring. It’s a matter of examining the growth potential of the Livengood district. We’ve got a good handle on how big Livengood is, and now it’s a matter of finding out what else the district might hold for us.”

View Company Profile

Contact:
Shirley Zhou
VP of Corporate Communications
888.770.7488
604.638.3247

by Greg Klein

Romarco reports South Carolina Gold Results as high as 5.5 g/t over 70.1m

November 2nd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningRomarco Minerals Inc TSX:R announced assays from the Palomino Zone of its Haile Gold Mine in South Carolina. Results include

5.5 g/t gold over 70.1 metres
1.2 g/t over 37.5 metres
2.4 g/t over 21.3 metres
(including 5.5 g/t over 4.3 metres)
2.9 g/t over 15.2 metres
(including 4 g/t over 9.1 metres)
1.6 g/t over 26 metres
1.4 g/t over 25.9 metres
5.9 g/t over 5.7 metres

President/CEO Diane Garrett commented, “Our geology team continues to demonstrate their knowledge and geologic interpretation of the Haile mineralized system. Even with over 320,000 metres of drilling since acquiring the project, we continue to discover new zones and identify new targets on the property.”

View Company Profile

Contact:
Diane Garrett
President/CEO
210.621.4200

or Dan Symons
IR Manager
416.367.5500

Read more about Romarco Minerals Inc.

by Greg Klein

Romarco reports SC Results as high as 10.5 g/t Gold over 32.9m

September 15th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningRomarco Minerals Inc TSX:R announced assays from its Haile Gold Mine in South Carolina. Results include 10.5 g/t gold over 32.9 metres, 3.4 g/t over 47.6 metres (including 12.7 g/t over 6.1 metres), 6.9 g/t over 19.8 metres, 2 g/t over 57.9 metres (including 10.1 g/t over 6.1 metres), 4.1 g/t over 26.8 metres (including 8.2 g/t over 10.7 metres) and 3.6 g/t over 25.9 metres.

President/CEO Diane Garrett remarked, “We are pleased with the progress we are making with the Environmental Impact Statement. Promptly selecting the third-party contractor is a significant step in advancing the EIS on the timeline we are targeting.”

View Company Profile

Contact:
Dan Symons
Investor Relations
416.367.5500

by Greg Klein

A Bump in the Road

August 5th, 2011

Romarco Still Intends to Pour Gold in Early 2014

By Ted Niles

Diane Garrett admits that Romarco Minerals has been “beaten up a bit over the last few months.” The company’s President and CEO says there are several reasons why, most important being the US Army Corps of Engineers’ July 1 request of an Environmental Impact Statement for the South Carolina Haile Gold Mine—instead of the less stringent Environmental Assessment Romarco had hoped for. This has resulted in a 12-month permitting delay which, explains Garrett, “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.”

On the other hand, Garrett adds, “Seventy to 75% of our institutional shareholders are still in; they have not reduced their positions. And we’re still given a very high value per ounce of gold vis-à-vis our peers.” She believes two other factors might also explain why Romarco’s share price remains so low in spite of an asset that analysts have long raved about. “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.”

Romarco Still Intends to Pour Gold in Early 2014

Market forbearance and permitting delays are, of course, not to be dismissed lightly. But it is important to note that this is the first bad news Romarco has ever had.

The company acquired Haile—located in the Carolina Slate Belt—in 2007 and announced December 2009 an already robust NI 43-101 mineral resource estimate of 1.47 million ounces gold measured, 697,000 ounces indicated and 2 million ounces inferred. After a 108,000-metre drill program in 2010, the resource was updated—as part of Haile’s February 2011 feasibility study—showing 3.1 million ounces gold measured and indicated (including 2 million ounces of proven and probable reserves) and 1.1 million ounces inferred. The feasibility study itself projected capital costs for Haile of $275 million (considered very low by industry standards), operating costs of $379 per ounce (ditto), with a reserve grade of 2.06 g/t (considered very high).

On the heels of the feasibility’s release, the Financial Post‘s Peter Koven noted, furthermore, that the study wasn’t nearly as interesting to analysts as “how much bigger the project will become, given exploration upside that is not included in the study.” He explained, “After looking at drill data from the company’s ‘potential mineral deposits’ that were not included in the feasibility, [Paradigm Capital analyst] Don Blyth wrote that they imply an additional 1.99 million to 4.35 million ounces of gold.”

It’s therefore hard to disagree with Garrett’s September 2010 statement to Resource Clips that Haile is “one of the most significant discoveries in our industry in the last 10 years.”

Of course, since the news that the Environmental Protection Agency advised the Corps of Engineers in late March not to grant Romarco a wetlands permit without further study, there has been much speculation as to what the company can do to deliver value to its shareholders over the ensuing 12 months. Its share price has, as a consequence, fallen 40%. The Globe and Mail reported July 28 that CIBC World Markets analyst Brian Quast had downgraded Romarco to “sector underperformer.” Quast said, “We believe that the likelihood of positive news from the drill bit for the remainder of the year is relatively low.” Exactly what Romarco least wanted to hear. (Curiously, Quast’s assessment came a mere three days after Romarco announced an interval, from its current exploration program, of 45.8 grams per tonne gold over 23 metres—one of the best results ever from its Horseshoe zone.)

Seventy to 75% of our institutional shareholders are still in; they have not reduced their positions. And we’re still given a very high value per ounce of gold vis-à-vis our peers. —Diane Garrett

But Romarco understood that the permitting delay was a possibility and planned accordingly. Says Garrett, “We’re drilling 172,000 metres this year, and the intent of the drill program is to increase overall reserves and resources. Haile’s still open in all directions and at depth, so we’re just going to keep drilling to make it bigger.” In other words, the company will concentrate on precisely those “potential mineral deposits” that had observers buzzing after February’s feasibility study. Ninety-two thousand metres of the program has already been completed, and Romarco’s August 4 press release specified that 50% of the remaining program will focus on Haile step-out drilling, 30% on regional exploration and 20% on infill drilling. A 43-101 underground study is expected to be completed by the end of 2011.

Horseshoe is among the more promising of the deposits not currently included in Haile’s resource, with July 25 assays including, as mentioned, 45.8 g/t gold over 23 metres. May 2 Horseshoe assays included 4.1 g/t over 13.1 metres, 1.6 g/t over 20.6 metres, 5.7 g/t over 21.9 metres and 5.5 g/t over 36.3 metres. July 21 assays of the newly designated Mustang zone included Haile’s best hole yet at 5.5 g/t gold over 117.4 metres. Garrett says of the July results, “Both sets 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.”

Garrett expects to have permits in hand by late 2012. “Then we would start breaking ground and construction in early 2013. That would have us pouring gold in early 2014.”

Despite the setbacks, Garrett remains confident. “The project has gone much faster than any of us would have thought four years ago,” she declares. “Coming in four years ago, if you had told me we were going to be having over a million ounces a year—that’s almost unheard of!”

She concludes, “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. This is a large system that’s very amenable to current technologies, particularly in a high gold-price environment. And we think the work we’ve done will demonstrate that Haile is basically what Nevada was in the 1980s. 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.”

At press time, Romarco Minerals had 503.3 million shares trading at $1.59 for a market cap of $800.2 million.

Romarco reports S Carolina Gold Assays up to 17.3 g/t over 31.8m

March 9th, 2011

Romarco Minerals Inc TSX:R announced drill results from its Haile Gold Mine in South Carolina. Highlights include 1.2 g/t gold over 6.5 metres, 1.5 g/t over 10.7 metres, 17.3 g/t over 31.8 metres (including 66.9 g/t over 7.6 metres), 1.4 g/t over 8.8 metres, 1 g/t over 6.2 metres, 1.5 g/t over 99.6 metres, 4.5 g/t over 69.8 metres (including 6.7 g/t over 22.7 metres) and 2.7 g/t over 39.2 metres (including 4.3 g/t over 17.7 metres).

The Haile Gold Mine has a mineral resource estimate of 3.1 million ounces gold measured and indicated, 1.1 million ounces gold inferred.

View Company Profile

Contact:
Diane Garrett
President/CEO
210.621.4200

or Dan Symons
Manager, Investor Relations
416.367.5500

Read More about Romarco Minerals

by Ted Niles