Royal Roads financial, exploration & resource activity update

    Trading Symbol: RRO - TSX-V
    Shares Outstanding: 112,127,490

    HALIFAX, Sept. 4 /CNW/ - Royal Roads Corp. (RRO-TSX-V) ("Royal Roads") is
pleased to provide an update on the Company and its activities following its
acquisition of 100% of the common shares of Buchans River Ltd ("Buchans
River"). As a result of the transaction, Royal Roads' treasury stands at
approximately CDN$5.5 million (as at August 31, 2008), representing
approximately $0.049 per share outstanding. Furthermore, Royal Roads now holds
a 100% interest in all assets formerly held by Buchans River, including the
134 km2 property covering the entire former Buchans mining camp in central
Newfoundland. The former Buchans Mine was one of the highest grade base metal
deposits in Canadian history, where historic mining up to 1984 produced
16.2 million tonnes of ore grading 14.51% zinc, 1.33% copper, 7.56% lead,
126 g/t silver and 1.37g/t gold.(*)
    Currently, the primary focus of Royal Roads is exploring for new high
grade orebodies in the core of the former Buchans mining camp. Results of
deep-seeking Titan 24 DCIP and MT surveys completed in 2007 and early 2008
over one of the most productive portions of the camp are now in hand. The
program generated approximately 130 anomalies as classified by Quantec
Geoscience Ltd., which are currently being reviewed and prioritized for a
planned fall drilling program.
    In addition to the Titan targets, Royal Roads expects to advance its
exploration on the West Clementine prospect where drilling three drill holes
in 2008 intersected sulphide stockwork mineralization over core lengths
ranging between 29 and 118 metres. Significantly, these stockwork
intersections are visually similar to that observed beneath the historic
high-grade Buchans massive sulphides deposits mined by American Smelting and
Refining Company ("ASARCO"). In addition to the stockwork mineralization,
drill hole H-3390 intersected 7.38% combined base metals over a core length of
2.00 m comprised of 4.30% zinc, 2.66% lead, 0.42% copper, 7.02 g/t silver and
0.03 g/t gold (Buchans River news release dated May 26, 2008). The project is
at too early a stage to determine the true widths represented by the
interrupted core lengths. In light of these results, management believes that
the West Clementine area is highly prospective for high-grade Buchans style
massive sulphides at shallow depths below 150 m. Further drilling is
anticipated at this prospect during the coming winter, when access to the
prospect is enhanced after freeze up.
    In addition to exploration programs geared towards discovery of high
grade deposits, Royal Roads will also continue to assess the Buchans project
for bulk tonnage mineralization that may be amenable to mining by open pit
methods. Work to date has focused on the Lundberg zone, which hosts a
historical uncategorized resource recognized by Buchans River in 2007 and
estimated by ASARCO in 1974 to total 11.9 million tonnes of almost 3% combined
base metals grading 1.83% zinc, 0.67% lead, 0.38% copper, 0.16 ounces per ton
silver (5.5 g/t) and trace gold(*)(*). This resource is not National Instrument
43-101 compliant and as such can not be relied upon.
    Mercator Geological Services have been contracted to produce a National
Instrument 43-101 compliant inferred resource for this deposit which
incorporates both historic data and current drill results and is expected to
be completed in Q3-08. The Lundberg zone remains open in several directions
and as well, hosts higher grade sections. This is particularly evident where
the resource comes to surface on its eastern side where drill hole H-3356
intersected 44.73 m assaying 7.21% combined base metals comprising 4.85% zinc,
1.64% lead, 0.72% copper, 19.4 g/t silver and 0.17 g/t gold.
    Will Felderhof, President of Royal Roads stated, "The recent combination
of Royal Roads Corp. and Buchans River Ltd. into a single entity has resulted
in a financially strong exploration company with tremendous exploration
potential in one of Canada's premier base metal camps. We look forward to
commencing the next stage of diamond drilling, particularly on the Titan
24 geophysical targets, West Clementine, and the Lundberg Zone."
    In addition to the newly acquired Buchans properties, Royal Roads also
controls a 100% interest in the Tulks North property, within which hosts the
Daniels Pond deposit, and covers the entire northern half of the prospective
Tulks Belt. Royal Roads has also acquired projects focused on discovery of
magmatic nickel sulphides deposits as well as tin and tungsten prospects.

    (*) Past production figures for the Buchans Mines including the McLean
        and Lucky Strike mines were obtained from an article written by
        Neary, G.N., 1981: The Buchan Orebodies: 50 years of geology and
        mining. 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 61,
        Table 2.

    (*)(*) Trace gold is less than 0.01 ounces per ton gold (i.e. less than
           0.35 g/t gold), the lower detection limit of historical gold
           assays used in Asarco's resource estimate.

    About Royal Roads

    Royal Roads is a resource company based in Halifax, Nova Scotia, Canada
and is focused on exploring and developing base metal properties in the famous
Buchans and Victoria Lake mining camps in central Newfoundland and Labrador,
Canada, where Royal Roads controls property totaling 33,700 hectares,
including the historic Buchans mines, the Lundberg deposit in the Buchans camp
and the Daniels Pond deposit in the Victoria Lake camp. The Company also
controls several exploration properties outside of the Buchans camp, including
several under joint venture to Prominex Resource Corp. (PXR - TSX-V) and
Playfair Mining Ltd. (PLY - TSX-V), which are being actively explored. Acadian
Mining Corporation ("Acadian") owns 29.18% of Royal Roads. Acadian is a
Halifax-based resource company producing lead and zinc from its Scotia Mine
and developing gold and base metal properties in Nova Scotia.

    Forward Looking Statements

    Certain information regarding Royal Roads 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 Company
cautions that actual performance will be affected by a number of factors, many
of which are beyond Royal Roads' control, and that future events and results
may vary substantially from what both companies currently foresee. Royal
Roads' forward-looking statements are expressly qualified in their entirety by
this cautionary statement.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.
    %SEDAR: 00008176E

For further information:

For further information: about Royal Roads please contact: G. William
Felderhof, President & CEO of Royal Roads; David Felderhof, Vice-President of
Royal Roads, (902) 444-3637

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890