ROMARCO MINERALS INC. (TSX-V: R) (the "Company") announces revised
NPV numbers at 0%. The NPV numbers at 5% are correct; however, it
significantly understated the numbers at 0%. The Company apologizes
for the error and emphasized that all other information released
today is correct. See corrected table below.
Romarco Minerals is pleased to announce that a Bankable
Feasibility Study on the Haile Gold Mine project in South Carolina
has been completed. Gustavson Associates was the lead consultant
engaged by Romarco for this independent study.
It is important to note that the feasibility study is based on
drill result data as of October 2008 and capital equipment pricing
as of August 2008. All drill results obtained and disclosed since
October 2008 (visit website for drilling press releases at
www.romarco.com) are not reflected in this study. A new resource
update will be available in March 2009 as well as a re-pricing of
capital costs given the recent decline in commodity prices and
general economic conditions.
In response to the many requests that the Company has received
for fundamental economic information and analysis on the Haile Gold
Mine, the Company determined that it would be appropriate to
release the Feasibility Study today based only on data as of
October 2008, notwithstanding that the significant and more recent
results and improvements cannot yet be incorporated. A revised
feasibility / development plan encompassing this updated
information with new economics is expected to be completed by April
2009.
Highlights of the Feasibility Study:
The key findings of the Feasibility Study include the following
(all figures are in US Dollars):
-- Net Present Value ("NPV") of $250 million at a gold price of $750 per
ounce, after tax. Using a 5% discount rate, the NPV @ $750 gold is $161
million.
-- Internal Rate of Return ("IRR") of 24%
-- Production of average 128,000 ounces of gold per annum
-- Production of 289,000 ounces of silver per annum
-- Cash operating costs of $262 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 study proposes open pit mining of three pits using in-pit crushing
/ conveying. The processing facility will be 7,000 tpd with crushing,
grinding, flotation and conventional CIL (carbon-in-leach) milling and
refining.
-- Gold recovery 80%
-- Silver recovery 90%
Please click on the link below for the table that provides
project economics (NPV, IRR) at varying gold price assumptions. All
figures are in millions of US Dollars:
http://www.usetdas.com/maps/romarco/romarcotablefeb309correction.pdf
Diane Garrett, President & CEO of Romarco, said, "We are
very pleased with the robustness of the Bankable Feasibility Study
and look forward to incorporating the recent drilling success into
the model and mine plan. Haile continues to exhibit significant
upside with the mineralized zone continuing to remain open in three
directions (northeast, north, southwest). The capital cost estimate
was based on pricing in August 2008 -- near the peak of commodity
prices -- and does not reflect, in our opinion, the reductions that
may be possible resulting from the recent economic downturn. We
have secured additional land adjacent to Haile on which historic
drilling demonstrates an extension of the mineralized zone that is
currently being drilled.
The Haile Gold Mine has several unique features. First, it is
located wholly on private land. Romarco owns the surface, mineral
and water rights. Private land, and hence the Haile property, are
not subject to the same restrictions as federal/public (BLM or
USFS) lands that would be subject to projected modifications of the
1872 Mining Law and possible royalty(s). In addition, the State of
South Carolina has primacy over the permits and Romarco has not
seen any impediments to the permitting process. The community and
local officials have been tremendously supportive of our work. They
see considerable opportunity and recognize the substantial and much
needed economic benefits that will be generated by the Haile Mine.
Romarco currently holds thirteen (13) permits and is in the process
of obtaining the remaining ten (10) permits."
The Feasibility Study comments on the permitting status:
"On-going discussions with agency personnel over the past year have
not revealed any impediments to obtaining the necessary permits to
construct, operate and close a new operation at Haile. In addition,
regulatory discussions did not reveal any new legislation or
regulations that are being contemplated that could have an impact
on mine permitting timeframes, schedules or costs."
The Company made application and received approval for a
reduction in property tax from 10.4% to 4%. The net result of this
tax reduction is a savings of approximately $2 million per year
based on the current production scenario.
Garrett further commented, "Our Feasibility Study efforts and
operations have been guided by Mr. Ken Brunk, COO of Romarco. Mr.
Brunk is a leading metallurgical engineer and mining operator in
the industry. Mr. Brunk has a long and distinguished career with
Newmont Mining, Bateman and Harrison Western Engineering firms and
has been responsible for the construction, operation and production
efficiencies of numerous mines around the world. He and his Romarco
team deserve considerable credit for having advanced the prospects
of the Company in such a short period of time."
The Feasibility Study team also comprised a number of highly
qualified, industry-recognized technical groups. Roberts and
Schaefer was engaged to provide plant, infrastructure and
engineering design while Gustavson Associates provided the mineral
resource estimation, mine plan optimization, mining costs, and
project economics. The reserve estimation was completed using NI
43-101 standards and operating cost calculations were based on the
Gold Institute Standard. Gochnour and Associates is leading the
permitting process. RDI provides the metallurgical testwork, Golder
Associates provides the geotechnical work. Water Management has
provided the hydrology work.
The Company will be filing an NI 43-101 technical report
covering the Feasibility Study on SEDAR in the very near future.
Please visit the Company's website for the latest powerpoint
presentation.
This press release has been reviewed and approved for release by
Donald E. Hulse, P.E. and Terre Lane (Member, AusIMM) of Gustavson
Associates, Ken Brunk, P.E. (COO for Romarco), and Tom Kilbey,
Professional Geologist (Sr. Geologist for Romarco) each being a
designated "Qualified Person" under NI 43-101.
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, bankable feasibility study and permitting.
The Pinos Gold District in Mexico is a high grade epithermal vein
district that is in the advanced exploration stage.
For further information, please contact Diane Garrett, President
and C.E.O. at (830) 624-6249 or Shirene Urton, Executive Assistant
at (775) 355-1900.
ON BEHALF OF ROMARCO MINERALS INC.
"Diane R. Garrett"
Diane R. Garrett,
President & CEO
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS
RELEASE.
Distributed by Filing Services Canada and retransmitted by
Marketwire
ROMARCO MINERALS INC. 997 Greg Street Sparks, Nevada USA 89431
Tel: (775) 355-1900 Fax: (775) 355-1907 Email Contact
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