Romarco hits more high-grade gold at Haile (September 21, 2010)

Vancouver -The latest drill results at Romarco Minerals’ (R-T) Haile project show bonanza-grade gold mineralization in the upper portion of the Horseshoe zone.

The company has been working to better understand the Horsehoe zone at its South Carolina property since discovering the target in March. Romarco stumbled upon the zone while conducting condemnation drilling 300 metres east of what was then the edge of known mineralization, in an area covered by 12 to 15 metres of sand.

A number of high-grade hits have already been reported from deeper sections of Horseshoe but the new results come from shallower intercepts around 200 metres below ground.

In the latest results, Hole 378 cut 19.2 metres grading 46.5 grams gold from 205 metres downhole and hole 379 hit 16.8 metres carrying 25.3 grams gold from 199 metres downhole. The step-out results only represent the upper portions of the drill results, with assays pending on the lower portion.

Hole DDH-378 was drilled 46 metres west of hole DDH-368, which cut 29 metres grading 3.7 grams gold, and 155 metres above hole discovery hole RC-1724 that hit 91.4 metres carrying 7 grams gold. Hole DDH-379 intersected the mineralized zone 64 metres west of hole DDH-378.

Romarco has also been busy exploring its other targets at Haile including the Snake, Ledbetter and South Pit areas as the company works through a 130,000-metre drill program this year. Roughly 40% of the drill program has concentrated on condemnation drilling as part of ongoing feasibility study work.

In early August the company reported step-out results west and down dip of the proposed South Pit, with intercepts ranging from 85 to 137 metres beyond the proposed pit walls. In that program, Hole RC-1779 cut 21.3 metres grading 7.2 grams gold per tonne and hole RC-1781 hit 10.7 metres averaging 4.1 grams gold while most other results were shorter and in the 0.6 to 2 grams gold range.

Recent results also indicate a possible connection between the Snake and Horseshoe targets. Drill results between the two include hole RCT-010 that returned 15.2 metres grading 2.4 grams gold from 405 metres depth, hole RCT-019 that hit 30.8 metres carrying 4.9 grams gold from 564 metres downhole and RCT-012 that cut 21 metres grading 2.3 grams gold from 398 metres.

The current resource on the project estimates 44.6 million measured and indicated tonnes grading 1.51 grams gold for 2.17 million contained oz., and a further 61.2 million inferred tonnes grading 1 gram gold; using a 0.343 gram gold cut-off.

The Haile project in Lancaster County includes 1,392 hectares of land in fee simple while Romarco also has a 100% leasehold interest in an additional 206 hecatres.

Mineralization at Haile is found in moderately to steeply-dipping bodies within an east-northeast-trending zone. Gold mineralization is associated with pyrite and silification. The mineralization is typically restricted to the laminated metasiltstone, but occasionally spreads into the volcanic assemblage.

The company acquired the property in late 2007 from Kinross Gold (K-T, KGC-N). Kinross had bought the property in 1998, but did nothing with it other than close and reclaim the mine due to low gold prices and poor economic conditions. Since acquiring the property Romarco has moved aggressively to develop the project.

Romarco’s stock has seen heavy trading recently, rising 36¢ on 30 million shares traded over six days to hit a closing high $2.50 before the news was released. On the news company’s stock price dropped 4¢ to $2.46 on 6 million shares traded. The company has 469 million shares issued.