VANCOUVER– The extent of mineralization at Romarco Minerals’ (R-V) Haile project in South Carolina continues to grow.
The latest batch of stepout results further pushed known — and still open — mineralization beyond boundaries of Haile’s main zones: Ledbetter, Snake and South Pit.
Highlights include hole 1616 in the Ledbetter zone, hitting as much 21 metres grading 4.9 grams gold per tonne starting 200 metres down-hole, and hole 1517 in the South Pit, returning 11 metres grading 5.6 grams gold starting at 128 metres.
Overall, Romarco cut gold-mineralized intercepts over 2-to 20- metre widths at depths between about 50 to 400 metres with grades ranging from 0.5 gram gold to 13 grams gold.
More than 30 of the holes were not part of Romarco’s late-October resource update, suggesting there is still room to grow.
In that estimate, measured and indicated resources increased 34% to 2.2 million oz. gold in 44.6 million tonnes grading 1.51 grams gold.
Haile’s consistent growth and a feasibility study of the Haile project completed in early 2009 seem to have grabbed the attention of investors.
In July, Romarco announced a $40-million bought-deal financing consisting of about 45 million units at 88¢ a share. In the past year, Romarco shares have gone from trading in the 25¢ range to over $1.50 in recent weeks.
Romarco’s feasibility study of the Haile project proposes a mine with capital costs of US$153 million, total production costs of US$450 per oz. gold and yearly production of about 128,000 oz. gold and 289,000 oz. silver.
At a price of US$750 per oz. gold, the project returned an internal rate of return of 24.3%.
On news of the drill results, Romarco shares gained 1¢ to close at $1.73. The company has close to 300 million shares outstanding.
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