Romarco hits more high-grade gold at Haile (October 04, 2010)

VANCOUVER — The latest drill results at Romarco Minerals’ (R-V) Haile project show bonanza-grade gold mineralization in the upper portion of the Horseshoe zone.

The company has been working to better understand the Horseshoe 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.

High-grade hits have already been reported from deeper sections of Horseshoe but the new results come from shallower intercepts of around 200 metres depth.

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

Hole 378 was drilled 46 metres west of hole 368, which cut 29 metres grading 3.7 grams gold, and 155 metres above discovery hole 1724 that hit 91.4 metres carrying 7 grams gold. Hole 379 intersected the mineralized zone, 64 metres west of hole 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 downdip of the proposed South Pit, with intercepts ranging from 85 to 137 metres beyond the proposed pit walls. In that program, hole 1779 cut 21.3 metres of 7.2 grams gold and hole 1781 hit 10.7 metres averaging 4.1 grams gold while most other results were shorter and in the 0.6-to 2-gram gold range.

Recent results also indicate a possible connection between the Snake and Horseshoe targets. Drill results between the two include: hole 10 that returned 15.2 metres of 2.4 grams gold from 405 metres depth; hole 19 that hit 30.8 metres carrying 4.9 grams gold from 564 metres downhole; and hole 12 that cut 21 metres of 2.3 grams gold from 398 metres.

The current resource is estimated at 44.6 million measured and indicated tonnes grading 1.51 grams gold for 2.17 million contained ounces, and a further 61.2 million inferred tonnes grading 1 gram gold, using a 0.34 gram gold cutoff.

The Haile project in Lancaster County includes 14 sq. km of land in fee simple while Romarco also has a 100% leasehold interest in an additional 2.1 sq. km.

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 of $2.50 before the latest drill results were released. On that news, Romarco’s shares dropped 4¢ to $2.46 on 6 million shares traded. The company has 469 million shares issued.