Romarco Reported Major Resource Increase At Haile Gold Mine
The updated resource estimate includes 23,400 meters of new drilling in 77 core and reverse circulation holes drilled between February 2 and September 6, 2009. The drill data for the interim update was based on assays received and interpreted to enable Gustavson (independent engineering firm, see QP details below) the time to conduct the necessary work that comprises the resource estimation. The 23,400 meters of drilling represents 28% of the planned 2009 drill program of 85,000 meters. To date, the Company has completed nearly 60,000 meters of the planned 85,000 meters of drilling and has assays pending for the majority of those. The drilling for this interim resource update not only expanded the size of the resource, but allowed some of the previously defined grade shells to be connected forming larger contiguous bodies.
The grade of the measured and inferred resources has also increased. The measured and indicated grade increased by 6% and the inferred grade increased by 12% as compared to the March 2009 estimate. The proven probable reserve grade remains at 2.7 g/t. A new reserve estimate will be performed in conjunction with the final bankable feasibility study and will include drilling data from October 2008 that was the basis of the last reserve estimate.
Romarco has spent US $4.05 million in drilling, logging, assaying, and geologic interpretation of the 23,400 meters of drilling. The ounces gained in this interim resource update therefore represent a USD $4.62 per ounce of gold discovery cost. The 85,000 meter program is expected to be completed with all assays back by March of 2010.
Diane Garrett, President and CEO commented, Romarco is once again pleased to provide these interim results showing the effectiveness of the on-going deposit definition drilling and exploration drilling at our Haile Project. Increasing the resource by 850,000 ounces of gold from February to September 2009 demonstrates the significant potential that exists at Haile. To date, Romarco has converted 550,000 ounces of inferred resource into the measured or indicated category. The Haile mineralized corridor continues to remain open in all directions and at depth. In addition, Romarco has been acquiring lands along strike of Haile containing historic resources drilled during the 1970’s and 1980’s. Romarco will be drilling these areas in the coming months.
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