Romarco hits new zone and best intercept at Haile

Vancouver – Romarco Minerals (R-V) has hit a new gold zone and the best intercept to date at its continuously expanding Haile gold project in South Carolina.

The company cut the latest intercept as part of a condemnation drilling program designed to find somewhere in the area without mineralization to put tailings. That is proving harder than anticipated, with three of five proposed sites returning gold mineralization and a fourth showing some evidence of the same.

The new zone expands on what is already a sizeable and well-established gold resource based around the historic Haile mine.

Hole 1724, the latest hit, returned 91.4 metres grading 7 grams gold per tonne starting at 365.8 metres, and included 62.5 metres averaging 9.6 grams gold. The hole, which ended in mineralization, was drilled 235 metres northeast of known mineralization at Haile. The company named the new zone Horseshoe and efforts are underway to better define the zone.

The latest intercept comes only weeks after Romarco hit mineralization in condemnation hole 1732, located 70 metres northwest of hole 1724. The earlier hole hit intervals containing 2.9 grams gold over 35.1 metres and 2 grams gold over 24.4 metres between 215 and 316 metres, though a full assay of the hole has not yet been released. Meanwhile hole 1667, drilled for hydrogeologic characterization, hit 21.3 metres grading 3.1 grams gold starting 170.7 metres downhole.

The promising drill results came soon after the company significantly increased its land holdings in the area. Romarco increased its land position by 53% in January and now controls seven kilometers of strike length along the Haile mineralization corridor. The company also added 49 hectares in the Buzzard area, located 9.7 km northeast along strike from the Haile mine. All land was private, which simplifies permitting, and there are no royalties outstanding. Romarco has spent US$10 million since late 2007 acquiring land, including the Haile Gold Mine itself.

Romarco has big plans for 2010 with 130,000 metres of drilling slated using five drill rigs, as well as finishing a new feasibility study and possibly starting construction. The drill program will be performed across the entire Haile property as well as on recent acquisitions in the Buzzard area.

In 2009 the company completed 78,000 metres of drilling and brought the total number of drill holes to 1,920. Using the new data the company released an updated resource estimate in December that doubled the established resource from 2008.

The known mineralization zone as of December was approximately 457 metres wide, northwest to southeast, and 2.4 km long, southwest to northeast. The total resource is pegged at 44.6 million measured and indicated tonnes grading 1.51 grams gold per tonne, with a further 61.2 million inferred tonnes grading 1.002 grams gold. Proven and probable reserves stand at 1.5 million oz. gold.

The mineralized footprint at Haile remains open in all directions and at depth despite the extensive exploration. The company expects to continue exploration in the area for several years.

The Haile mine is found within the Carolina Slate Belt of the southeastern United States, which also hosted the Brewer Gold Mine and the Ridgeway Gold Mine. The Haile property is 5 km northeast of the town of Kershaw and roughly one hour from both Charlotte, North Carolina, and Columbia, South Carolina.

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.

Romarco bought 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 share price was up 40¢ on the day to close at $2.07. The company’s share price has climbed fairly steadily from a 52-week low of 29¢ to the high set on the news. The company has 372 million shares outstanding, with a further 66 million warrants and options.