Romarco Closes Haile Gold Mine Acquisition
Friday, October 19th, 2007
Romarco Minerals Inc is pleased to announce that it has closed the acquisition of the Haile Gold Mine (Lancaster County, South Carolina) from Haile Mining Company, Inc., a subsidiary of Kinross Gold Corporation.
In connection with the closing all permits and titles have been transferred to Romarcoâ€™s wholly owned subsidiary (Haile Gold Mine Inc.), the Company has posted the financial assurance reclamation bond of US $3.2 million and issued to Haile Mining Company, Inc. 5 million common shares in the capital of Romarco.
The Company has also executed a Lease and Option to Purchase Agreement with a private third party for an additional 875 acres adjoining and surrounding the property. The total land package controlled by the Company is approximately 1800 acres.
The Companyâ€™s technical team will immediately begin a confirmation drilling program, to convert the resource estimate which may be categorized as proven and probable reserves in accordance with NI 43-101. Simultaneous with the confirmation drilling, the Companyâ€™s technical team has designed a drilling program to increase resources on the property. The Companyâ€™s Q.P. on the Haile Gold Mine is Tom Kilbey.
Haile Gold Mine
The historic resource of the Haile Gold Mine and surrounding property is 15.2 million tonnes at an average grade of 3.1 grams per tonne for a total of 1.54 million contained ounces of gold. The historic reserve (Amax, 1994) encompassed a total proven and probable reserve of 780,100 ounces. The historical reserve by Amax was completed prior to NI 43-101 and therefore, is being treated as a historical resource by the Company. Existing drilling in the historic reserve areas was completed on an average spacing of 50 foot (15 meter) spacing and has been confirmed by Behre Dolbear to be a well-defined resource.