With gold remaining one of the few safe havens in this uncertain financial world, the search for the shiny yellow metal has expanded into places that were unheard of up until now. The familiar ones of folklore have been Alaska, California, Northern Ontario, Mexico, South Africa and South America. But what some investors may not suspect is that similar finds have been made in the state of South Carolina, where Romarco Minerals, Inc. (TSX-Venture:R) has announced assay results from several drill holes at its Haile Gold Mine, results that have gratified management and would intrigue investors seeking to add new strength to their portfolios.
Romarco, which trades on the TSX Venture Exchange under the symbol R, is based in Vancouver but with offices in Nevada, hails the Haile project as its flagship property, and why not? Haile currently has 1.62 million ounces of gold (measured and indicated) with 3.26 million total gold resource (including inferred), and is open in three directions.
In late May, Romarco announced significant results that highlight how lucrative this development can possibly be. Three of the holes at Haile represent the initial part of the 2009 step-out program at the North Resource (Ledbetter) area. These holes demonstrate that mineralization continues in a northeast direction. The mineralized zone, which now spans over 3.5 kilometres in strike length, from Northeast to Southwest) and over 1.5 km north to south, continues to remain open to the north, east, west and at depth.
One of the holes in question is said to have produced 27 metres of 2.9 g/t (ounces of per ton) gold; another, 32.8 metres of 2.3 g/t gold. Still another hole encountered 51.8 meters of 1.7 g/t gold. Quite the find for a geographical region known rather for tobacco than for gold.
The company is also active in Mexico, primarily on the Pinos Gold District, discovered by the Spaniards in the 16th century. Pinos is approximately 3,000 hectares in size and hosts four known high-grade gold veins with consistent strike lengths of over four kilometres each.
The company prides itself on having a significant institutional shareholder base, a management team and board of directors with extensive experience in the precious metals industry, $25 million in cash and no debt – much to make investors’ mouths water.
Investors were tantalized enough to send the price of Romarco shares to a new 52-week high on May 22 at 79 cents, a far cry from the trough of only nine cents last October. On the days news arrived of the latest strike at Haile, shares had subsided to around the 70-cent mark, even though trading was active in the hundreds of thousands of shares.
By: AllPennyStocks.com
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