Romarco Minerals (R-T) pushes the reopening of its past-producing Haile gold mine in South Carolina back by a year to complete an environmental impact statement (EIS).
On July 1, the U.S. Army Corps of Engineers asked the company to conduct an EIS to assess the affect the mining operation would have on the nearby wetlands and streams.
“Completing an EIS removes uncertainty about any future potential challenges to an environmental assessment,” said Romarco’s president and CEO Diane Garrett, in a press release. “The EIS will only address the Wetlands (404) aspect of the mining operation.”
The 404 Wetlands permit is the only federal permit the company needs; however, it does need a few other permits before it can revive the old mine.
The Haile mine is situated within the Carolina slate belt, which spans from Georgia to Virginia. The belt is famous for hosting several gold deposits, which produced gold starting in the early 1800s until the late 1990s.
Haile began producing in 1827, and continued churning out gold until the 1990s.
Before the order of the new study, federal regulators said Romarco only needed to complete an environmental assessment for the mine, and the company originally planned to start construction next year.
But with the EIS, the company would have to put aside $2 million and add 12 months to its timeline, and delay hundreds of jobs. The company planned to employ 500 people during the construction phase and about 300 once in production.
Romarco has already spent more than $4 million on studies for Haile.
A February 2011 feasibility study prepared by M3 Engineering & Technology showed reserves at Haile stood at 30.5 million tonnes grading 2.06 grams gold per tonne for 2 million oz. gold, based on a gold price of US$950 per oz.
The company currently has about $65 million in hand.
On July 5, its stock closed at $1.52, within a trading range of $1.48-$2.88.
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