Romarco announces 2012 drill program
Feb 24, 2012, 07:49 ET
TORONTO, Feb. 24, 2012 /CNW Telbec/ - ROMARCO MINERALS INC. (TSX: R) (the "Company") is pleased to provide an outline of its planned 2012 drill campaign based on the positive results from the 2011 exploration program.
The Company's drilling program for 2011 was successful on several fronts: The areas needed for condemnation were completed, much of the mineralization previously classified as inferred resource was upgraded to measured and indicated resource classifications, mineral resources at Haile increased significantly, and regional exploration away from Haile encountered ore-grade mineralization.
With the information gained in 2011, the Company conducted a comprehensive review of its exploration drilling priorities and considered the following:
- 2012 drill targets will predominately focus on step-out, greenfields exploration and deep drilling which is more cost effective with core drilling
- Increased need for core drilling relative to reverse circulation drilling
- Cost efficiencies of conducting its exploration program with five Company-owned rigs
- Contract core drilling cost were US$55 per foot versus Romarco-owned core rigs cost of US$26 per foot
- Substantial completion of condemnation drilling needed for developing Haile
As a result of this review and being conscious of cash conservation in current market conditions, the Company's 2012 exploration and development drilling plan will be conducted with five Company-owned rigs (four core and one reverse circulation). This program will yield a cash savings of approximately US$17 million over the 2011 drill plan and deliver 85,000 meters of exploration drilling in highly prospective areas. The proposed budget for the 2012 drill program is approximately US$12 million. The Company believes that contractor drills can be re-mobilized and additional company rigs can be acquired if warranted by exploration success. The structural information gained from core versus reverse circulation drilling should lead to improved step-out targeting.
The exploration drill plan for 2012 comprises of:
1) Step-out drilling along strike and at depth to expand the overall mineralized footprint at Haile
2) Continued regional exploration drilling in the Carolinas
3) In-fill drilling focused within the permit area on targets with the highest likelihood of converting existing resources into reserves.
Diane Garrett, President and CEO stated: "With the success of the 2011 drill program and the need to drill deeper zones and step-out along strike to areas with little drill data, we are mostly focusing on core drilling. Drilling with our Company-owned rigs allows us to maintain a sustainable exploration program and accomplish all our exploration objectives while prudently managing cash resources."
The Company continues to actively pursue strategic property on trend with Haile as well as land positions regionally with favourable geology and, in some cases, historical drilling or mining information.
About Romarco Minerals Inc.
Romarco Minerals Inc. is a gold development company focused on production primarily in the US. The Company has completed a positive Feasibility study and is continuing exploration drilling and permitting for its flagship project, the Haile Gold Mine in South Carolina.
For further information:
Romarco Minerals Inc.
Diane Garrett, President and CEO
E-mail: [email protected]
Dan Symons, Vice President, Investor Relations
E-mail: [email protected]
Renmark Financial Communications Inc.
Maurice Dagenais 514-939-3989 or via e-mail at [email protected]
This entire press release may be accessed via fax, e-mail, Romarco's website at www.romarco.com and through CNW Group's website at www.newswire.ca. All material information on Romarco Minerals Inc. can be found at www.sedar.com
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