SPARKS, NV, Sept. 28 /CNW Telbec/ - ROMARCO MINERALS INC. (TSXV: R) (the "Company") is pleased to announce that it has acquired approximately 662 additional acres of land adjacent to and on trend from the Haile Gold Mine in South Carolina. Approximately 512 acres were purchased in an area known as Buzzard which is located approximately 9.6 km (6 miles) to the northeast of Haile. The past producing Brewer Gold Mine is situated less than 1.6 km (1 mile) northeast of Buzzard, along strike from Haile. The Ridgeway Mine, Haile Gold Mine, Brewer Mine (former producing gold mines) and Buzzard are situated along a SW-NE gold trend known as the Slate Belt of the Carolinas (see map in Annual Report).
Gold mineralization on the Buzzard property hosts similar rock units that host the gold ore at the Haile Gold Mine (banded metavolcanics and metasediments with silicification, molybdenite and pyrite). Prior drilling data from the 1990's shows the presence of high-grade gold mineralization in this area.
Diane Garrett, President and CEO commented: "The Buzzard area has always been a strategic target for Romarco. Our technical team has analyzed the historic data on this property as well as conducted its own geologic due diligence and believe it hosts significant potential. In addition to the Haile Gold Mine mineralized corridor, which continues to remain open in all directions and at depth, the technical team has identified seventeen (17) additional historically drilled targets areas within the trend (including Buzzard). To date, Romarco has yet to drill beneath one of these historic areas and not find ore grade gold. Romarco continues to maintain the view that it is exploring and developing a gold district and is continuing to acquire lands adjoining, and in the vicinity of, the Haile Gold Mine. Romarco's acquistion cost per historic resource gold ounce averages approximately US$20 per ounce."
The terms of the purchase agreement include a cash payment of US$3500 per acre (total US$ 1.79 million) and 200,000 shares in the capital of Romarco to the seller Blackwell Limited.
The Company has also purchased approximately 150 acres of land adjoining the Haile Gold Mine from the Small Family Living Trust. This parcel of land hosts known gold mineralization previously drilled by Amax Gold and appears to be an offset or possible extension of the South Pit. The total purchase price was US$2900 per acre (total US$435,000). The property had a 45 year exploration and mining lease with a third party which included a 5% net smelter royalty. The total purchase price of the royalty and termination of the lease was US$1.6 million.
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 and development. The Pinos Gold District in Mexico is a high grade epithermal vein district in the advanced exploration stage
For further information, please contact Diane Garrett, President and C.E.O. at (210) 621-4200 or Shirene Urton, at (775) 355-1900.
ON BEHALF OF ROMARCO MINERALS INC.
"Diane R. Garrett"
Diane R. Garrett,
President and C.E.O.
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THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE."
SOURCE Romarco Minerals Inc.
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