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, and 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 the gold price.

Net Present Value/Internal Rate of Return
The new report, based on Romarco’s previously filed technical report, has updated the project’s after-tax net present value, at a 5% discount rate, from $191-million 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 advancing 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 has closed a $200-million senior secured project finance facility with a group of lenders to build its flagship Haile gold project.

Financiers Caterpillar Financial Services, ING Capital, Macquarie Bank and Société Générale Corporate & Investment Banking have extended the project finance facility to Romarco with no mandatory gold hedging.

Construction at Haile started in May and the first gold pour is expected in the fourth quarter of 2016.

There are currently six contractors and subcontractors on site.

To date, the initial mining fleet has been delivered and prestripping has started at the Mill zone of South pit, while hiring employees and contractors is on schedule and expected to total 164 at the end of June. By year-end, the total staffing will be about 350.

Romarco’s focus is currently on timbering, clearing and grubbing at the tailings storage facility (TSF), the mine area haul roads, the 69 kV power line and the TSF growth media-storage area.
Site grading is in progress for the temporary maintenance facility, and stormwater control measures are in progress for the Mill zone and temporary maintenance facilities.
Land clearing and stormwater control measures are also being installed for the plant area in preparation for the installation of the underground utilities and construction of the water treatment plant.

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 environmental-impact statement 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.