Name and Location
Haile gold mine project, South Carolina, US.

Client
Romarco Minerals.

Project Description
The Haile gold mine has measured and indicated gold resources of 71.2-million tonnes at 1.77 g/t of gold, as well as an inferred gold resource of 20.1-million tonnes at 1.24 g/t of gold.

Proven and probable gold reserves are estimated at 30.5-million tonnes at 2.06 g/t.

The feasibility study envisages a conventional openpit mine, based on variable pit-slope angles.

The bulk of material from the mine will be hard rock, which will be drilled and blasted prior to loading. The mine is expected to produce 2.55-million tonnes of ore a year for delivery to the process plant.

The process plant design incorporates conventional precious metals recovery processes, including jaw crushing, semiautogenous and ball milling, flotation, fine grinding of the flotation concentrate and carbon-in-leach cyanidation.

Final plant tailings will be stored in a conventional tailings facility.

In December 2014, Romarco filed an updated technical report on the Haile project.  The new report is based on the company's previously filed technical report, but updates the economics of the project including initial and sustaining capital, operating, reclamation and mitigation costs and gold price. 

Net Present Value/Internal Rate of Return
The new report based on the Romarco’s previously filed technical report, has updated the project’s after-tax net present value from $191-million at a 5% discount rate to $329-million.  The after-tax internal rate of return has increased from 15.7% to 20.1%.

Value
The capital costs based on the new technical report are now projected to be $333-million, compared with capital costs of $275-million in the previous technical report, and includes a $17-million contingency, of which about $31-million has been paid. The increase in capital is primarily owing to bringing forward some work that was previously projected to be sustaining capital, increased insurance amounts, refinements in the detailed engineering, additional capital affiliated with permit requirements and increases in materials costs.

Duration
A timeframe has not been confirmed.

Latest Developments
Romarco Minerals has reported that the US Army Corps of Engineers has issued its record of decision (RoD) and granted a permit under Section 404 of the Clean Water Act for the company's Haile gold mine project, marking the end of the environmental-impact statement (EIS) process.

As the corps does not have an administrative appeal process available for permit opponents after issuing the RoD, the permit is complete, final and immediately effective.

The 404 permit was the only federal environmental permit required for the Haile project.

Last year, Romarco received four state permits – a national pollutant discharge elimination system permit, an air-quality permit, a dam safety permit and a stormwater construction permit. The state approved its water quality certification earlier this month, recommending that the Corps grant Romarco the same certification at federal level.

The company is awaiting the state mine-operating permit.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Romarco hoped to break ground on the $385-million Haile project at the end of 2011, but work was delayed after the corps had decided to request an EIS process, rather than the simpler environmental assessment, for which the company had hoped. The company has spent more than $4.5-million on environmental studies over the past for years.

Contact Details for Project Information
Romarco Minerals, Dan Symons, tel +1 416 367 5500, fax +1 416 367 5505 or email info@romarco.com.