Romarco eyes bonanza veins at Pine Grove

Vancouver — An option agreement provides Romarco Minerals (R-V) with yet another gold project in one of the best neighbourhoods of mineral-rich Nevada.

The company secured rights to earn a 60% interest in the Pine Grove project from Toquima Minerals, a Nevada-based company seeking a listing on the TSX Venture Exchange.

The project consists of 138 unpatented lode claims covering 2,760 acres in the Walker Lane trend, about 23 miles south of the small town of Yerington.

The land package is part of the Pine Grove historic mining district, and includes the past-producing Rockland mine. Gold production from 1870 and into the late 1930s is estimated to have ranged from 18,000 to 35,000 oz. Previous operators exploited banded epithermal veins similar to those historically mined in the Sleeper and Midas districts of Nevada.

To earn a 60% interest from Toquima, Romarco must spend US$2 million on exploration and holding costs before the end of 2009. At least US$325,000 will be spent this year, subject to permitting and the availability of drilling equipment. The company can increase its interest to 70% by agreeing to advance the project to the feasibility stage.

Previous operators at Pine Grove focused on low-grade, bulk-tonnage targets, and produced results such as 10 ft. grading 0.17 oz. gold per ton and 5 ft. grading 0.26 oz. gold. Romarco, however, will direct its attention to known bonanza vein systems.

The company sees similarities to its wholly owned Buckskin-National project, a volcanic-hosted, gold-silver project on the northwestern extension of the Carlin trend.

Romarco expects to have three major drill programs under way this year in Nevada. Several newly identified high-grade targets will be tested on the Buckskin-National project. Historic mines in this region have produced some of the richest ores mined in the state.

Drilling is also planned for the wholly owned Roberts Mountain gold project, 30 miles southeast of the Cortez Hills discovery of Placer Dome (PDG-T).

Geological mapping and geochemical sampling are planned for the wholly owned Golden Zebra project, 7.5 miles west of the Midas gold mine of Newmont Mining (NEM-N) and six miles east of Newmont’s Twin Creek gold mine. The goal here is to find “Midas-style” bonanza gold-silver deposits.

Toquima, meanwhile, controls eight projects in Nevada, including Pine Grove and a project optioned to Newmont.