Romarco Minerals Inc fka TSX:R

[MWM]

Romarco emphasises no decisions made on permits
By: Liezel Hill
1st April 2011

TEXT SIZE TORONTO (miningweekly.com) – TSX-listed Romarco Minerals said on Friday that no decisions have been made on key permits for its Haile gold project by the government agencies that will actually determine whether the permits are issued.

Shares in the company fell sharply on Friday morning, after a South Carolina newspaper reported that the US Environmental Protection Agency has recommended against awarding a wetlands permit.

Romarco could be asked to conduct an environmental-impact statement (EIS) in order to receive the permit, the report said.

The company said later in a statement that it needs two permits to start operations at the mine – a state mine operating permit, to be decided by the South Carolina Department of Health and Environmental Control, and the federal wetlands permit, which falls under the US Army Corps of Engineers (USACE).

The public comment period for both permits has now closed, and the company received copies of the comment letters on March 31.

“The EPA, acting as a commenting agency on this matter, recommended that the USACE request additional information and clarification before a permit be issued,” Romarco said.

“While other agencies may act as commenting agencies, the USACE is the regulatory agency that will issue the federal permit, and no determination has been made by the USACE regarding an EIS.”

Romarco shares were down 17% at C$1,84 apiece by 10:19 in Toronto. The stock traded as low as C$1,80 earlier in the morning.

Company spokesperson Dan Symonds did not respond to requests for comment.

The Haile project is expected to cost $275-million, according to a feasibility study published this year.

Production will average 150 000 oz/y in the first five years, at average cash costs during the same period of $347/oz.