Resource World Magazine

TOREX GOLD RESOURCES INC. [TXG-TSX] ROMARCO MINERALS INC. [R-TSX] NPV (5% Discount).........US $900 million IRR (Post-Tax)...............................24.2% Payback Period...........................3.6 years Cash Costs (net of Ag credits).. US $421/oz Capital Costs........................$675 million* Shares Outstanding...............606,500,126 NPV (5% Discount)...............693 million* IRR (Pre-Tax)................................37.5%* Payback Period..........................2.4 years* Cash Costs.....……………………$379/oz Capital Costs......................... $320 million Shares Outstanding............. 585.5 million * Capex up to commercial production. *Based on US $1,300/oz gold Torex Gold Resources Inc. has just begun construction of its first mine at its 100%-owned Morelos gold property in the Guerrero Gold Belt, 180 km southwest of Mexico City, southwest Mexico. The 29,000-hectare property features two projects: El Limon-Guajes, currently under development and the Media Luna Project, a discovery that contains 5.8 million gold equivalent ounces not included in the current Bankable Feasibility Study. El Limon-Guajes' total proven and probable reserves stand at 48.8 million tonnes grading 2.61 g/t gold. This translates to 4.09 million ounces of gold, plus 6.81 million ounces of silver. Based on metallurgical studies, gold recoveries will be 87.4% in the 14,000 tonne-per-day mill. Annual production is scheduled to be 128,000 ounces of gold in 2015, 246,000 ounces in 2016 and between 2017 and 2024, annual production of 375,000 ounces of gold. Mine life is estimated to be 10.5 years, not counting additional upside potential in the deposit, nor the potential from the Media Luna deposit. Related developments have been proceeding well with a new community layout having been accepted and families have selected their building lots and home design. Water well drilling for the new community of El Potrerillo is under way. Land purchases have been completed. Access roads are ready, a construction camp has been completed and there is an electrical development agreement in place. Environmental permits and union agreements are also in place. As of late October, detailed engineering was 43% complete. At Media Luna, drilling has recently intercepted high-grade, gold-silver-copper mineralization over significant widths beyond the current resource area. DECEMBER/JANUARY 2014 RW December 2013.indd 21 Romarco Minerals Inc. is in the permitting stage for its 100%-owned Haile Gold Project in South Carolina. Located in Lancaster County, in the Carolina Slate Belt, the Haile gold mine has been a past producer on and off for some 200 years. The company has completed a positive Bankable Feasibility Study (which does not include deep resources). Measured and indicated open pit and underground resources (based on US $1,200/ oz gold) stand at 71,171,000 tonnes grading 1.77 g/t gold, representing 4,039,000 oz. Inferred resource are 20,125,000 tonnes of 1.24 g/t gold, for 801,000 oz. There is a proven and probable gold reserve of 30.5 million tonnes at 2.06 g/t for 2.0 million oz. Drilling to date has indicated further potential for gold mineralization at depth. In October 2013, the South Carolina Department of Health and Environmental Control granted Romarco three key permits. The Bureau of Air Quality issued the State Construction Permit (Air Permit), which authorizes construction of the facility and equipment, and describes all major equipment and control devices that could potentially impact air quality. The Bureau of Water issued a renewal of the existing National Pollutant Discharge Elimination System Permit, which establishes discharge standards as well as the Dam & Reservoir Safety Permit which authorizes the construction of the Duckwood tailing storage facility. The Haile gold mine, which has strong local support, has easy road access and features a mild climate. The company recently completed a $24.5 million financing. Detailed design and engineering is over three-quarters completed. Production is forecast to be 150,000 oz/year for the first five years. GOLDROCK MINES CORP. [GRM-TSXV] NPV (5% Discount).............. $168 million IRR (Post-Tax)..................................28% Payback Period...........................2.1 years Cash Costs................................... $647/oz All-In Sustaining Cash Costs........ $878/oz Capital Costs............... US $155.38 million Shares Outstanding............... ~77 million Goldrock Mines Corp. is developing its 100%-owned Lindero porphyry gold deposit in Salta province, northwest Argentina, an open pit, heap leach project that has been granted a primary mining permit by the Salta provincial government. A positive independent Feasibility Study has been completed that envisages production at an initial throughput rate of 15,000 TPD, increasing to 18,750 TPD during the first year of operation. Average annual production will be 109,000 ounces during the first nine years. In addition to the Lindero deposit, Goldrock also owns the nearby open pittable Arizaro porphyry gold deposit. Together, the two deposits host measured and indicated resources of 159,650,000 tonnes grading 0.50 g/t gold and 0.11% copper, which represents 2,548,000 oz gold. Inferred resources at the two deposits total 87,070,000 tonnes grading 0.34 g/t gold and 0.11% copper, representing 940,000 oz gold. At present, mine life is estimated to be about 10 years; however, less than 15% of the Arizaro area has been explored, which offers potential to expand resources and extend mine life. At Lindero, the strip ratio will be 1.79:1 (waste:ore). Metallurgical studies have indicated gold recoveries would be 68.3%. Access to the mine sites are by all-weather roads either from the City of Salta or from Chile. Although the Lindero and Arizaro projects are located in the sparsely populated Puna district, the area is well serviced with infrastructure including an airstrip, national and provincial roads, gas pipelines and an international railway line. Production is forecast for Q1 2015. As of October 31, 2013, Goldrock had $10 million in cash. www.resourceworld.com 21 12/11/2013 6:11 PM

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