TORONTO, Feb. 24, 2012 /PRNewswire/ - 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:
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts