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Junior Miner Hits Significant Gold Mineralization On South Carolina Property
By: AllPennyStocks.com News
October 6, 2009
It’s a 19th-century expression, but gold fever was in the air in the first full week of October, what with the price of the shiny yellow metal pulling away from the $1,000 mark and climbing to record highs. For anyone who pays cursory attention to this sector of the economy, it’s enough to make pulses race.
So it was as the week began when Nevada-based Romarco Minerals Inc. (TSX-Venture:R) announced new results from one of its South Carolina properties. The state better known for tobacco than gold mining turned up some surprising numbers.
Romarco announced that its drilling program had entailed some 170 holes, in more than 51,000 metres of drilling on its Haile property in South Carolina. A significant focus of the 2009 drilling program is to identify gold mineralization between the proposed pits in order to bring them into one large pit and reduce the overall strip ratio.
The richness of what’s been tapped so far is also reason for passion to be stirred. The range of mineralization between intervals is truly remarkable, from 125 to 362 grams per tonne (g/t) gold. Also, a fifth rig has been added to the exploration program at Haile, a core drill rig, which will be used for exploration and geotechnical drilling. Additional drilling has been completed within these areas and the assays are pending.
Haile is the flagship project for Romarco, a gold development company focused on production in Mexico as well as the United States, with 1.62 million ounces of gold, as well as 3.26 million total gold resource (including inferred), and is open in three directions. It’s in Mexico that R’s Pinos Gold District is located, a high-grade epithermal vein district in the advanced exploration stage. Romarco also boasts a significant institutional shareholder base, a management team and Board of Directors with extensive experience in the precious metals industry, $55 million in cash ($1 million restricted) and no debt.
The company completed a bought-deal financing arrangement in August, of more than 52 million shares, at 88 cents each, for total proceeds topping $46 million, all of which were to be earmarked for the Haile property, a move showing a great deal of foresight.
Investors were hailing the mineralization announcement, sending the stock price soaring to $1.25, equaling its 52-week closing high, established in mid-September, and towering above the nine-cent trough to which R fell in mid-October of last year. There’s gold in the earth of the Carolinas, and there’s value in the shares of Romarco, which small cap investors might want to investigate a bit further.
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