Romarco Minerals Inc
Tuesday, October 30th, 2007
Romarco Minerals Inc is pleased to announce that Behre Dolbear & Company, Inc. of Denver, Co. has completed the scoping study for the Haile Gold Mine. The report has been SEDAR filed as a NI 43-101 report. The scoping study outlines a mining operation that will produce an average of 100,000 ounces of gold production per annum after the initiation start-up year of operation at a gold cash cost of $350 per ounce. Romarco has solicited engineering firms to prepare a definitive project feasibility study, is in the process of evaluating those proposals and intends to award the contract shortly. All amounts in this news release are in US dollars.
The study indicates a 6 year mine life based on current measured and indicated mineral resources (7.8 million tonnes @ 2.8 g/t gold). The study used Geostatistical and Lerchs-Grossman methods of evaluating the current resource based on over 1800 drill holes in 453,000 feet of core and reverse circulation drilling (138,000 meters). The drilling was completed on 50 foot spacing (15 meter spacing).
In addition, there exists inferred resources of 7.4 million tonnes grading 3.1 g/t gold).
The NPV and IRR of the Haile Gold Mine at various gold prices are provided in the table below:
Gold Price, NPV at 0%, NPV at 5%, IRR
650 $55.6 million $ 25.5 million 11.7%
700 $78.4 million $ 42.6 million 15.6%
750 $97.1 million $ 57.2 million 19.0%
800 $117.6 million $ 72.9 million 22.4%
850 $138.0 million $ 88.5 million 25.6%
Flowsheet: Open-pit mining, jaw crushing, SAG mill grinding, flotation, re-grind, CIL, electrolytic gold refining
Throughput rate 4000 tons per day
Capital Expenditure $94 million
Cash Costs (Yrs. 2-5) $350 per ounce
Average annual gold production (Yrs. 2-5) 105,000 ounces
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
For further information visit: www.romarco.com