Trading Symbol: RRO - TSX-V
Shares Outstanding: 112,127,290
HALIFAX, May 3 /CNW/ - Royal Roads Corp. (RRO-TSX-V) ("Royal Roads" or "Corporation") wishes to announce, effective May 3, 2010, the resignation of its Chairman, Mr. Peter Lee, its President and Chief Executive Officer, Mr. Menachem Vorchheimer and its Chief Financial Officer, Ms. Stacey Stone. Messrs Lee and Vorchheimer and Ms. Stone are all Officers of Acadian Mining Corporation ("Acadian") and resigned upon the closing of the sale of Acadian's 29.18% interest in the Corporation to a number of parties on April 30th, 2010. The Corporation wishes to thank Messrs Lee and Vorchheimer and Ms. Stone for their service.
Mr. Warren MacLeod has been appointed a director and President and Chief Executive Officer of the Corporation. Mr. MacLeod, of Windsor Nova Scotia, Canada, has significant experience in private and public companies and served as the Corporation's President and Chief Executive Officer from November 2006 to August 2008.
Mr. Andrew Forrest was also appointed a director of the Corporation. Mr. Forrest, of Nyon, Switzerland, is a mining and mechanical engineer with 10 years experience in the mineral resource industry. Mr. Forrest has been involved in numerous resource projects from grass roots exploration through feasibility study to mine construction in a number of different locations including Zimbabwe, Guyana, Peru, Canada, Germany and the United States.
The board of directors of Royal Roads is now comprised of Messrs. Warren MacLeod BA, Mr. Andrew Forrest MSc BEng, Mr. Edmund Merringer, LL.B., and Mr. Steven Poad, C.A. The officers are Mr. Warren Macleod, President, Mr. Paul Moore, P.Geo., Vice President of Exploration and Ms. Suzan Frazer, LL.B., Corporate Secretary. The Corporation is commencing a search for a new Chief Financial Officer. In conjunction with the closing of the sale of its shares of Royal Roads, Acadian has agreed to continue providing management and administrative services to the Corporation for up to 90 days to assist in an orderly transition to the new management.
In the words of Warren MacLeod, "I'm very pleased to rejoin Royal Roads and look forward to taking proactive action towards developing the Corporation's outstanding stable of properties located in the heart of the Buchans mining camp, historically one of Canada's richest base metal mining camps. Given today's commodity prices, the primary focus of the new Board will be to accelerate the development of the Lundberg deposit at Buchans, with the clear intention of taking it to bankable feasibility. With the continued flow of encouraging results coming from a number of the Corporation's other projects, the new Board will review the best means of accelerating the development of these properties, either in-house or by joint venture."
The Board is particularly encouraged about recent results from Clementine West and Buchans North prospects that are located within 5 kilometres of Lundberg and represent very real prospects for new discoveries of Buchans style mineralization that made the old mine so famous. The Corporation also intends to maintain its interest in and commitment to the Long Range Nickel joint venture with Benton Minerals, which has recently produced excellent results that demonstrate outstanding potential for the possible discovery of magmatic nickel-copper sulphides deposits similar to the famous Voisey Bay mine.
In 2008, Royal Roads researched archive files from the former Buchans Mine, successfully identifying a zone of mineralization peripheral to the former Lucky Strike mine and underlying portions of the former mine infrastructure. This mineralization was subsequently named the Lundberg and Engine House zones and was the subject of a drill program that resulted in a NI 43-101 compliant Inferred resource (using a 1% combined Zn+Pb+Cu threshold) of 20.7 million tonnes with a combined Zn+ Pb+ Cu grade of 2.78%. (Royal Roads news release of November 7th, 2008). Given today's metal prices, Royal Roads believes the Lundberg resource warrants further detailed examination to determine the viability of it becoming an operating open pit mine.
Lundberg & Engine House Inferred Resource Estimate
1% combined Zn+Pb+Cu threshold - November 3, 2008(1)
Pb Pb, Ag Au 100 m of
Tonnes Zn % % Cu % Zn % g/t g/t Surface
Lundberg 20,700,000 1.68 0.72 0.38 2.78 5.92 0.07 51.91%
Engine House 1,120,000 2.04 0.85 0.82 3.71 9.79 0.12 61.79%
1. This value does not reflect any economic parameter, as an Inferred
Mineral Resource Estimate does not imply mineability. Tables adapted
from: Technical Report on the Mineral Resource Estimate for the
Lundberg and Engine House deposits Buchans Area, Newfoundland, Canada.
Prepared for Royal Roads Corp. by Peter C. Webster, B.Sc., P.Geo., P.
James F. Barr, B.Sc., Mercator Geological Services Limited. Effective
Date November 3, 2008.
About Clementine West:
With stringer-stockwork mineralization intersections of up to 121 metres, Royal Roads believes its 100% owned Clementine West prospect represents a large stringer-stockwork zone similar to that observed around the former high-grade massive sulphide Lucky Strike mine, where historic mining by Asarco produced 5.6 million tonnes(2) averaging 18.4% zinc, 8.6% lead, 1.6% copper, 112 g/t silver and 1.7 g/t gold. Results obtained from drilling completed by the Corporation in 2008 and 2010 suggest proximal accumulations of high-grade massive sulphides such as that of Lucky Strike may occur in close proximity to the stringer-stockwork mineralization and that significant additional drilling is warranted as the prospect has a minimum strike length of 1.5 kilometres, and is almost entirely untested below a depth of 200 metres.
2. Past production figures for the Lucky Strike orebody were obtained
from an article by Thurlow.,J.G., and Swanson, E.A., published in
1981: Geology and ore deposits of the Buchans area, central
Newfoundland. In: Swanson, E.A., Strong, D.F., and Thurlow,J.G.,
(editors), "The Buchans Orebodies: Fifty Years of Geology and Mining".
Geological Association of Canada Special Paper 22. Page 122, Table II.
About Buchans North:
The 100% owned Buchans North prospect was discovered by previous mine operators, Asarco, in the early 1950s, approximately 500 metres northwest of the former Oriental Mine, where Asarco, mined 3.3 million tonnes averaging 14.18% Zn, 7.90% lead, 1.47% copper, 154.0 g/t silver and 1.96 g/t gold between 1935 and 1983(3). The prospect was last drilled in 1967, and occurs approximately 290 metres below surface within a less explored, faulted repeat of the same horizon that hosts the Oriental mine. Interpretation of previous drilling suggests the Buchans North horizon may still be open in several directions and further exploration may track mineralization into less explored areas where additional deposits similar to Oriental could be discovered.
Royal Roads recently completed a two-hole diamond drill program that was designed to assess for possible extensions into areas where large accumulations of high-grade massive sulphides may be discovered. The first hole, H-3415, intersected massive sulphides assaying 15.50% copper, 1.85% lead, 5.80% zinc, 214.8 g/t silver and 2.92 g/t gold over 0.30 metres. The second hole, H-3416, intersected massive sulphides averaging, 15.52% zinc, 7.61% lead, 0.92% copper, 148.9 g/t silver and 1.15 g/t gold over 2.1 metres. Royal Roads considers these results to be very positive as they suggest mineralization extends beyond previously interpreted limits and occurs within a discrete mineralized horizon that remains poorly tested by previous drilling.
3. Past production figures for the Oriental Mines were obtained from an
article written by Thurlow, G.J., and Swanson, E.A., 1981: Geology and
ore deposits of the Buchans area, central Newfoundland. In: Swanson,
E.A., Strong, D.F., and Thurlow, J.G., editors), The Buchans
Orebodies: Fifty Years of Geology and Mining. Geological Association
of Canada Special Paper 22. page 123. The Corporation can not verify
About Long Range:
The Long Range property, located 64 kilometres to the southwest of Buchans, covers 381,500 hectares (381.5 km2) and is held as a 50/50 joint venture between Royal Roads and Benton Resources, with Royal Roads as the operator. The exploration philosophy at Long Range is centered around the potential for discovery of a magmatic nickel sulphide deposit broadly analogous to Vale Inco's Voisey's Bay mine in Labrador and Kennecott's Eagle deposit currently being developed in northern Michigan.
An airborne geophysical survey flown over the initial property in 2008 detected a number of anomalies in prospective gabbro. Follow up work ultimately resulted in the discovery of the Portage Nickel prospect within gabbro returning assays up to 2.70% nickel, 0.58% copper, and 0.24% cobalt in trenched bedrock grab samples. An initial four-hole shallow drilling program tested the prospect, returning assays of up to 1.36% nickel, 0.36% copper, and 0.039% cobalt over a 1 metre core length.
In addition, follow up work also resulted in the discovery of a new copper mineralized zone outside of the known gabbro where a two hole drill program testing a strong airborne geophysical anomaly returned a 37.80 metre intercept of banded, semi-massive to massive sulphides averaging 0.39% copper and 0.032% cobalt over an estimated true width of 29.11 metres. A follow-up program is currently in progress.
About Tulks North
The Daniels Pond volcanogenic massive sulphide deposit is located within the Corporation's 100% owned Tulks North property covering 16,075 hectares (approximately 32 km x 5 km) within the Victoria Lake mining camp in central Newfoundland. The property is considered highly prospective, being located within the northern half of the Tulks Volcanic belt, the same belt of rocks that hosts Messina Minerals' Boomerang, Hurricane and Tulks East base metal deposits, as well as the Tulks Hill deposit jointly owned by Royal Roads (49%) and joint venture partner, Prominex Resources (51%). The Corporation's Daniels Pond deposit is also located less than 10 kilometres southwest of Mountain Lake's Bobbys Pond base metal deposit and less than 30 kilometres west of Teck Resources operating Duck Pond mine. Considering the number of VMS base metal deposits within the area and the extensive number of untested exploration targets and under-explored ground, Tulks North may be considered for joint venture.
The Daniels Pond deposit hosts a NI-43-101-compliant Indicated Resource at a 1.5% Zn cut-off of 1.16 million tonnes grading 4.44% zinc, 2.12% lead, 0.31% copper, 87.79 g/t silver and 0.60 g/t gold, as well as an additional Inferred resource totaling 0.45 million tonnes grading 3.88% Zn, 1.74% Pb, 0.27% Cu, 81.63 g/t Ag and 0.52 g/t Au (Royal Roads news release dated March 13, 2008). The bulk of these resources occur within 150 metres of surface in two lobes of mineralization, the weaker mineralized Northeast Lobe and the stronger mineralized Southwest Lobe respectively. These lobes dip steeply to the northeast and have a combined strike length of 1,100 metres. Excellent potential exists to expand the Daniels Pond resource both at depth and along strike.
Paul Moore, M.Sc., P.Geo., (NL), Royal Road's Vice President of Exploration, is acting as Qualified Person in compliance with National Instrument 43-101 with respect to this release and has reviewed the contents for accuracy.
Forward Looking Statements
Certain information contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Royal Roads believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. The Corporation cautions that actual performance will be affected by a number of factors, many of which are beyond its control, and that future events and results may vary substantially from what the Corporation currently foresees. The Corporation's forward-looking statements are expressly qualified in their entirety by this cautionary statement.
About Royal Roads
Royal Roads is a resource company based in Atlantic Canada and is primarily focused on exploring and developing mineral properties in the famous historic Buchans mining camp in central Newfoundland, Newfoundland & Labrador, Canada. For additional information on Royal Roads' properties and activities, please visit www.royalroadscorp.ca.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
SOURCE ROYAL ROADS CORP.
For further information: For further information: Warren MacLeod, President & Chief Executive Officer, Royal Roads Corp., Windsor, Nova Scotia, (902) 472-2298, www.royalroadscorp.ca; Paul Moore, Vice President Exploration, Royal Roads Corp., St. John's, Newfoundland, (709) 738-7384, www.royalroadscorp.ca