- Press Releases
TORONTO, ONTARIO - May 31, 2005 - Romios Gold Resources Inc. ("Romios") (TSX VENTURE:RG) Management of Romios Gold Resources Inc. is pleased to announce that it has entered into an agreement with Roca Mines Inc. ("Roca") whereby Romios can earn up to a 75% interest in the Seagold Property located in northwestern B.C. The Seagold Property adjoins the Newmont Lake Property which is owned by Gulf International Minerals Ltd. Mclymont Mines Inc. ("Mclymont") a wholly owned subsidiary of Romios has an option to earn up to a 75% interest in the Newmont Lake Project.
Romios can earn a 50% interest in the Seagold Property by paying to Roca $25,000 in cash upon receipt of approval of the TSX Venture Exchange to the acquisition ("Exchange Approval"), an additional $50,000 in cash on December 1, 2005 and a further $125,000 in cash through December 1, 2007. Romios shall also issue to Roca 150,000 common shares following Exchange Approval and a further 150,000 common shares on each of December 1, 2005, 2006 and 2007. Romios shall also be required to expend $1,000,000 on the property between Exchange Acceptance and December 1, 2007 with an initial $150,000 to be spent by December 1, 2005. Romios can earn a further 25% interest in the Seagold Property by paying $2,000,000 to Roca in either cash or shares of Romios. As part of its agreement with Roca, Romios has also agreed to pay to the underlying property holder 200,000 common shares of Romios on the commencement of commercial production and an advance royalty of $30,000 per annum commencing on the earlier of one (1) year after Romios earns its interest in the Seagold Property and December 1, 2007. Any interest earned by Romios in the Seagold Property will be subject to the agreement between Mclymont and Gulf International Minerals Ltd. The acquisition of the Seagold Property is subject to the approval of the TSX Venture Exchange.
The acquisition of the Seagold Property, combined with the acquisition of Mclymont Mines Inc.(see News Release dated March 7, 2005) and certain staked claims north of the Newmont Lake Property (see News Release dated March 8, 2005), gives Romios control of an extensive land package comprising approximately 20,000 hectares (200 square kilometers) that covers a series of copper-gold prospects located roughly 30 kilometers southeast of Novagold Resources Galore Creek Project.
According to CIM Special Volume 46 the Galore Creek project is classified as a volcanic hosted, alkalic type porphyry copper-gold occurrence. Geological maps published by the BC Ministry of Energy and Mines indicate that the copper gold prospects in the Newmont Lake area occur in a geological setting similar to Galore Creek and management believes that the Newmont Lake Project represents an early stage, alkalic porphyry copper-gold exploration target. A technical report is currently being finalized and will be made available on the company's website as soon as possible.
Copper-gold mineralization in the northern part of the present Newmont Lake claim area was first identified by Newmont Exploration in the early 1960's. Available technical reports indicate that Newmont identified several areas of skarn type mineralization including a zone of chalcopyrite and magnetite mineralization hosted by volcanic rocks referred to as the Ken Zone. It is important to note that in a technical paper presented at the Cordilleran Round Up in January 2005 Novagold states that "Though described in the literature as one of the BC Triassic alkaline porphyry copper deposits, the mineralization at Galore is far more analogous with a replacement or skarn deposit. The vast majority of mineralization occurs in pervasively altered volcanic rocks".
In the early 1980's sampling by DuPont identified anomalous gold and copper values in stream sediment samples collected in the southern part of the Newmont Lake area. Based on the stream sediment sampling results DuPont and Placer completed soil sampling and mapping in several areas resulting in the identification of multiple anomalies however, no trenching or drilling was carried out and the Newmont, DuPont and Placer claims were allowed to lapse.
After the discovery of the Snip Deposit in the mid 1980's various junior mining companies acquired claims in the Newmont Lake area and carried out reconnaissance scale gold exploration programs. Several additional prospects were identified including an area of gold, copper and silver mineralization referred to as the NW Zone, which was the focus of extensive drill testing by Gulf International Minerals Ltd. Between 1987 and 1990 a total of 16,633 meters of drilling was completed in 148 drill holes. The only other extensive drill testing of a skarn type occurrence in the Newmont Lake area was a six hole program completed by Pezgold Resources Ltd. at the Ken Zone. In summary, historic exploration work carried out in the Newmont Lake area identified a total of 22 precious and base metal occurrences most of which have not been drill tested.
Published technical reports from Gulf International Minerals indicate that the NW Zone is a complex, highly retrograde altered zone of skarn style mineralization which exhibits high gold values compared to other skarn type occurrences. According to G.E. Ray and A. Ettlinger, 1991 drill intersections reported by Gulf from within the NW Zone included DDH 87-29 which intersected 11.2 meters averaging 55.02 grams gold per ton, 0.97% copper and 134.9 g/t silver.
According to Kiesman and Ikona, 1988 drilling at the Ken Zone reportedly intersected , near surface mineralization including 5.4 meters of 2.81 g/t Au and 0.832% copper in drill hole 88PG1 and 6.0 meters of 2.61 g/t Au and 0.94% copper in drill hole 88PG5. An examination of the drill logs for the Ken Zone shows that the reported mineralized intervals occur within wider, though lower grade, mineralized zones.
The acquisition of Mclymont Mines Inc., gave Romios control of seventeen of the known prospects in the Newmont Lake area. The acquisition of the Seagold Property gives Romios control of potential extensions of the NW Zone and the Ken Zone and control of the five remaining prospects in the Newmont Lake area.
Romios has commenced exploration work on the Newmont Lake Project to determine if the skarn type mineralization identified by previous operators is similar to skarn style "alkalic porphyry copper-gold," mineralization present at Galore Creek. The program, estimated at $500,000, will involve detailed airborne geophysical surveys, an examination of all of the known prospects and drill testing of high priority target areas. The financing completed on March 1, 2005 included $510,000 in Flow Through funds which will be used for completion of this program. The detailed airborne geophysical survey was completed on May 24, 2005. Results of the airborne survey and site examinations will be announced as they become available.
Carl von Einsiedel, a director of Romios, is the Qualified Person responsible for preparation of the technical information contained in this press release.
The current outstanding capital of the Company is 20,003,435 common shares before the issuance of any of the common shares contemplated herein.
To find out more about Romios Gold Resources Inc. (TSXV: RG) visit our website at http://www.romios.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Romios Gold Resources Inc.
President and Director
(416) 218-9772 (FAX)
Romios Gold Resources Inc.
Carl von Einsiedel, P.Geo,
You can view the Next News Releases item: July 28, 2005, Romios Announces Acquisition Of 2% NSR On Hislop Township Property
You can view the Previous News Releases item: May 16, 2005, Romios Announces Fugro Airborne Survey
You can return to the main News Releases page, or press the Back button on your browser.