ROMARCO MINERALS INC. (TSX VENTURE: R) (the "Company") is pleased
to announce that it has filed a National Instrument 43-101
Technical Report covering the Feasibility Study for the Haile Gold
Mine Project (see press release dated February 3, 2009). Gustavson
Associates, LLC of Lakewood, CO was responsible for completing the
Feasibility Study. The Feasibility Study was based on drilling data
through October 2008. The Company is in the process of updating its
resource estimate with drilling through January 2009. The revised
estimate is expected to be announced before the end of March 2009.
All figures are in US Dollars.
Key aspects of the Technical Report include:
Results of the Financial Model
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$750.00 / troy oz $900.00 / troy oz
Gold Price (planning price) (current market)
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NPV undiscounted $250 million $361 million
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NPV @ 5% $161 million $248 million
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IRR 24.3% 33.7%
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- Average annual production of 128,000 ounces of gold and
289,000 ounces of silver
- Cash operating costs of $266 per ounce
- Total production costs of $450 per ounce (capital, bonding,
taxes, DDA)
- 1.3 million ounces of gold in mineral reserves
- Capital Costs of $153 million
The mineral resource increase is due to the inclusion of 6 new
holes drilled in the Ledbetter area. These holes; DDH0318 to
DDH0322 and DDH0327 expanded the resource by approximately 200,000
ounces. A comparison of the estimate with data thru July and thru
October is shown below.
Haile Gold Mine Project
Lancaster County, SC
Estimated Mineral Resource
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Resource Estimate Resource
- data through July 08 Estimate - data through Oct 08
Inc-
Con- Con- rease
Gold tained Gold tained from
Measured Tonnes Grade Gold Tonnes Grade Gold July
Cutoff (oz/ton) (000's) (gm/t) (000 oz) (000's) (gm/t) (000 oz) (000 oz)
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0.010 oz/t 12,264 1.708 673 12,588 1.737 703 30
(0.343 g/t)
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0.015 oz/t 9,670 2.052 638 9,973 2.082 668 30
(0.514 g/t)
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0.020 oz/t 8,076 2.341 608 8,376 2.367 637 29
(0.686 g/t)
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Indicated
Cutoff (oz/ton)
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0.010 oz/t 22,698 1.136 829 26,158 1.216 1022 193
(0.343 g/t)
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0.015 oz/t 16,106 1.428 740 18,616 1.537 920 180
(0.514 g/t)
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0.020 oz/t 11,905 1.723 660 13,814 1.866 829 169
(0.686 g/t)
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Meas + Indic
Cutoff (oz/ton)
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0.010 oz/t 34,961 1.336 1502 38,746 1.385 1725 223
(0.343 g/t)
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0.015 oz/t 25,776 1.662 1378 28,588 1.727 1588 210
(0.514 g/t)
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0.020 oz/t 19,981 1.973 1267 22,191 2.055 1466 199
(0.686 g/t)
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Inferred
Cutoff (oz/ton)
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0.010 oz/t 26,148 0.807 679 27,547 0.858 760 81
(0.343 g/t)
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0.015 oz/t 16,199 1.045 544 16,877 1.136 616 72
(0.514 g/t)
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0.020 oz/t 10,674 1.279 439 11,232 1.409 509 70
(0.686 g/t)
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The Feasibility Study converts 88% of the measured and indicated
mineral resource to proven and probable mineable reserves. As the
February 5th press release states, the mineable reserve now
contains 7.8 million tonnes at 2.24 g/t in proven and probable
categories. The table below shows the mineable reserve at 0.015 opt
(0.514 g/t) and 0.020 opt (0.686 g/t) cutoffs.
Haile Project
Lancaster County, SC
Estimated Mineable Reserve
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Gold
Tonnes Grade Contained
Proven Reserve (000's) (g/t) Gold (000 oz)
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0.015 oz/t (0.514 g/t) 8,338 2.28 610
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0.020 oz/t (0.686 g/t) 7,282 2.52 590
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Probable Reserve
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0.015 oz/t (0.514 g/t) 12,290 1.84 729
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0.020 oz/t (0.686 g/t) 10,529 2.05 695
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Proven and Probable Reserve
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0.015 oz/t (0.514 g/t) 20,621 2.02 1,338
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0.020 oz/t (0.686 g/t) 17,811 2.24 1,285
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Inferred Resource within Designed Pit
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0.015 oz/t (0.514 g/t) 4,883 1.36 214
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0.020 oz/t (0.686 g/t) 3,912 1.55 195
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"We are extremely pleased with the continuing growth of the
Haile Gold Mine. The Company is in the process of modeling the
drill data from October '08 to January '09 which is comprised of an
additional 15 holes. A new resource update reflecting that
information will be available prior to the end of March 2009. While
an aggressive exploration program continues at Haile, Romarco is
moving the project to a development phase that includes definitive
metallurgical testing, permitting, process design refinement, and
updating the capital and operating cost estimates with the intent
to move the project into the detail design stage by this summer.
Romarco has been diligently working to create a significant gold
mine," stated Diane Garrett, President and CEO.
The resource calculations were completed by Gustavson
Associates, LLC of Boulder, Colorado under the direction of Mr.
William Crowl, VP; Mr. Donald E. Hulse, PE and Ms. Terre Lane,
independent Qualified Persons. Romarco's Qualified Persons for the
Haile Gold Mine are Tom Kilbey, the Company's Senior Geologist, and
Ken Brunk, Sr. VP COO.
Romarco Relinquishes Interest in Pine Grove Property
In addition, Romarco announces that it has entered into an
agreement to terminate its obligations under an agreement
originally signed with Toquima Minerals Corporation in respect of
its Pine Grove Property. The Company has undertaken an extensive
drilling program over the past four years on the property, and has
agreed to make a cash payment in the amount of approximately
$300,000 (inclusive of previously posted bonds which will be
assigned by Romarco) in satisfaction of any further obligations
under the agreement. The decision not to pursue any further work on
this project was made as part of the Company's desire to focus on
the development of the Haile Gold Mine and its Pinos Gold District
in Mexico.
About Romarco
Romarco Minerals Inc. is a gold development company focused on
production in the US and Mexico. The Company's flagship project is
the Haile Gold Mine in South Carolina which is currently undergoing
exploration drilling, development planning and permitting. The
Pinos Gold District in Mexico is a high grade epithermal vein
district in the advanced exploration stage.
ON BEHALF OF ROMARCO MINERALS INC.
Diane R. Garrett, President and C.E.O.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press
release.
Contacts: Romarco Minerals Inc. Diane Garrett President and
C.E.O. (210) 621-4200 Email: dgarrett@romarco.com Romarco Minerals
Inc. Shirene Urton Executive Assistant (775) 355-1900 (775)
355-1907 (FAX) Email: surton@romarco.com Website:
www.romarco.com
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