Romarco provides company update

TORONTO, Aug. 4, 2011 /CNW/ --
TRADING SYMBOL: TSX: R

TORONTO, Aug. 4, 2011 /CNW Telbec/ - ROMARCO MINERALS INC. (TSX: R) (the 'Company') is pleased to provide an update on development
activities, economic studies, drilling, and financing for the first
half of 2011 and plans for the remainder of the year.  Highlights
include:

    --  Completed the Romarco-owned analytical and metallurgical lab
    --  Initiated Environmental Impact Statement ('EIS') permit process
        - third party contractor selection underway
    --  80,000 meters drilling planned for second half of 2011
  o 40,000 meters or 50% Haile step-out drilling
  o 25,000 meters or 30% regional exploration
  o 15,000 meters or 20% Haile infill drilling
    --  National Instrument ('NI') 43-101 Underground Study at Haile
        Gold Mine ('Haile') due to be completed at end of 2011
    --  Progress made on arrangements for flexible delivery of
        equipment to coincide with mine development

Following the decision by the US Army Corps of Engineers ('USACE') to
require the Company to complete an EIS (previously announced July 1,
2011), the Company has implemented its contingency plan to take
advantage of the additional time required to complete the EIS in order
to optimize its development plan, and to mitigate the expense
associated with delayed production.  Details of the highlights listed
above are discussed below:

Diane Garrett, President and CEO commented, 'It has been an extremely
productive year thus far, and the pace of activities for delivering
value to our shareholders, employees and the local communities is
accelerating.  While the additional time required to complete an EIS is
a disappointment, we are taking full advantage of the opportunity to
enhance the Haile project and Romarco.  Our drilling program priorities
for the second half of 2011 was recently updated and approximately 80%
of our activity is targeted on the exploration upside at Haile and in
the region.  We completed the analytical and metallurgical lab on time
and budget, we have initiated underground studies that we expect will
produce a robust NI 43-101 compliant resource, and we promptly
kicked-off the EIS process with the US Army Corps of Engineers. We are
very pleased with the Corps' commitment to maintain a tight schedule
for the EIS as demonstrated by the fact we were able to advance the
schedule for issuing the public notice for scoping by two weeks.'

Development Activities

During the month of June, the Company completed construction of its
previously announced analytical and metallurgical lab on schedule and
on budget ('Kershaw Mineral Lab' or 'KML').  The laboratory is
currently in its commissioning phase and is expected to commence
operations this month.

The lab will improve the planning of future drill holes and add value to
the exploration program by decreased turn around time on assay data. 
Until KML receives accreditation, all ore-grade assays reported to the
public will be completed by third party, independent  assay
laboratories as has been conducted in the past.  KML will begin the
17025-accreditation process in September, which is anticipated to take
approximately 18 months to complete.  This accreditation process
involves development, documentation, and approval of control systems
and proficiency testing of round-robin samples issued by the Canada
Centre for Mineral and Energy Technology ('CANMET').  KML will also be
accredited by the Standards Council of Canada.

Romarco is working closely with the USACE and the Company recently held
productive meetings with the USACE to launch the EIS on its 100% owned
Haile project in South Carolina.  The Company and the USACE have
selected respective project leaders, established weekly communications,
and developed a compact schedule for selecting an independent
third-party contractor to prepare the EIS for the USACE and move
promptly into the scoping process. The USACE requested Romarco
recommend a list of engineering firms that are familiar with mining and
Federal 404 Wetlands permitting.  Several leading engineering firms
have responded to Requests for Qualifications ('RFQ's) and we
anticipate the USACE, with Romarco's participation, will select the
third-party contractor and provide notice of the public scoping
meetings in the next few weeks.

Economic Studies

In mid-2010, Haile commissioned Snowden Group to complete an Underground
Mining Scoping Study.  While several potential underground targets were
identified with the largest of these deposits being Horseshoe, the
study in 2010 was based on limited drilling information at the time. 
The study did, however, conclude that further investigation of the
underground potential at Haile was warranted.  They recommended that
the Company conduct further drilling to improve the definition of the
deposits, obtain geotechnical data, review and refine underground
mining costs, and investigate the integration of the underground with
open pit mining plans.  Since that time, the Company has continued to
drill in the Horseshoe area and identified and initiated drilling at
other potential underground targets (Mustang, Ledbetter and Snake
Deep).  Geotechnical data is being compiled through the drilling of
oriented core holes and engineering data recovered and analyzed will be
incorporated into the underground mine design parameters.  The geologic
block model is in the process of being updated with the drilling
completed thus far.

The Company has engaged Snowden Group again to complete a NI 43-101
compliant Preliminary Economic Assessment ('PEA') of underground
mineralization at Haile.  The PEA, which is underway, will study the
trade-offs and boundaries of underground and open-pit methods at Haile,
develop underground design criteria, perform stope designs, evaluate
underground access alternatives, determine mining inventories, develop
a preliminary mining schedule, calculate an underground resource,
identify underground infrastructure requirements, and construct a
financial model.

The higher-grade underground opportunities at Haile have not been
incorporated into the Feasibility Study (previously announced February
9, 2011) nor the mine plan and therefore represent additional upside
potential.  Due to the recent drilling success of underground targets
the Company has moved quickly to launch a comprehensive review of the
ability to incorporate it into the mine plan. The Company notes that
the Haile property provides many mine optimization opportunities within
the permit framework, and these will be subject to continuous
assessment prior to and throughout the life of the mine as new drilling
information and discoveries become known.  The Company has planned for
and is confident that it will have ample time to incorporate the
preferred underground alternative into the overall mine plan.

The Company still envisions a combination of open pit and underground
mining as mineralization on the western portion of the property comes
to surface and hence would be more economical to pursue in an open pit
mine plan. The Company expects to complete and publish the PEA by the
end of 2011.

Romarco also intends to prepare an updated mineral resource and reserve
estimate on the Haile project based on its drill data through the end
of 2011.  The Company anticipates publishing the updated NI 43-101
technical report in the first quarter of 2012.

Drilling

As of June 30, 2011, the Company completed 92,000 meters of its planned
172,000-meter drill program for 2011.  The 92,000 meters of drilling
was completed on schedule and on budget and represents a 77% increase
over the same period in 2010.

During the first six months of 2011 the Company executed its budget and
directed drilling on areas that were most likely to benefit the mine
plan.  This involved (1) focusing on infill drilling to increase
reserves and upgrade in-pit inferred resource mineralization into the
measured and indicated resource categories, which were considered waste
in the feasibility study, and (2) condemnation drilling for overburden
stockpiles.  With the additional time available due to the EIS, Romarco
has updated its drilling priorities.  Exploration will now focus mainly
on step-out drilling at Haile for the balance of 2011, while
outstanding condemnation drilling will be mainly completed during 2012.
The Company is also conducting exploration drilling on its regional
targets in accordance with its budget.  Approximately 25,000 meters of
exploration drilling will be directed to regional targets (30% of the
2011 second half program).  The regional targets have been drilled in
the past with positive results.  The planned programs are intended to
confirm the historical drilling and test for strike and dip extensions
of the known mineralization.

Equipment / Financing

The Company is working with suppliers to secure key equipment with
long-lead times while minimizing near-term cash outlays. A local
equipment dealer has provided alternatives for delivery of the majority
of the planned mobile mining fleet on a schedule aligned with the
expected start-up of project development.  As a result of the EIS
delay, the Company expects it will incur some additional costs for a
local mobile mining equipment dealer to provide delivery flexibility
and firm pricing, which will eliminate the risks of significant cost
escalation and possible delivery delay.  The details of these
associated costs are being finalized.

The Company also extended its agreement with Barclays Capital as Adviser
for debt financing of Haile (previously announced December 15, 2010),
with the aim of securing project debt financing for construction and
commissioning of Haile's planned mining and processing operations.  The
agreement has been extended through June 30, 2013.

About Romarco Minerals Inc.

Romarco Minerals Inc. is a gold development company focused on
production primarily in the US.  The Company has completed a positive
Feasibility study and is continuing exploration and permitting for its
flagship project, the Haile Gold Mine in South Carolina.

FORWARD-LOOKING INFORMATION

This Press Release contains 'forward-looking information' that is based
on Romarco's expectations, estimates and projections as of the dates as
of which those statements were made. This forward-looking information
includes, among other things, statements with respect to the Company's
business strategy, plans, outlook, financing plans, earnings per share
and shareholder value, projections, targets and expectations as to
reserves, resources, results of exploration (including targets) and
related expenses, drilling activity, sampling and other data, capital
costs, and completion dates for the various development stages of
mines.  Generally, this forward-looking information can be identified
by the use of forward-looking terminology such as 'outlook',
'anticipate', 'project', 'target', 'believe', 'estimate', 'expect',
'intend', 'should', 'scheduled', 'will', 'plan' and similar
expressions. Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause Romarco's
actual results, level of activity, performance or achievements to be
materially different from those expressed or implied by such
forward-looking information, and developed based on assumptions about
such risks, uncertainties and other factors set out herein, including
but not limited to:

    --  uncertainties relating to resources and reserves estimates;
    --  risk that the Company may be unable to secure further capital
        necessary to carry out its operations;
    --  uncertainties relating to the ability of the Company to secure
        the various permits to conduct its current and anticipated
        future operations;
    --  inherent uncertainties associated with exploration and
        development activities;
    --  uncertainties relating to actual capital costs, operating costs
        and expenditures, production schedules and economic returns;
    --  risks associated with Romarco's operations being subject to
        significant environmental laws and regulations, including
        change in governmental regulation;
    --  uncertainties relating to the Company's ability to effectively
        manage growth;
    --  risks associated with the limited operating history of the
        Company and the lack of  history of earnings, positive cash
        flow or dividend payments; and
    --  risk that the Company's insurance coverage may not cover all of
        its potential losses, liabilities and damage related to its
        business;

A discussion of these and other factors that may affect Romarco's actual
results, performance, achievements or financial position is contained
in the filings by Romarco with the Canadian provincial securities
regulatory authorities, including Romarco's Annual Information Form.
Forward-looking statements are based on assumptions management believes
to be reasonable, including but not limited to the continued operation
of Romarco's mining operations, no material adverse change in the
market price of commodities, that the mining operations will operate in
accordance with Romarco's public statements and achieve its stated
production outcomes, and such other assumptions and factors as set out
herein. Although Romarco has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that forward-looking statements will prove to
be accurate.  Accordingly, readers should not place undue reliance on
forward-looking statements. Romarco disclaims any intent or obligations
to update or revise publicly any forward-looking statements whether as
a result of new information, estimates or options, future events or
results or otherwise, unless required to do so by law.

Please note:

This entire press release may be accessed via fax, e-mail, Romarco's
website at www.romarco.com and through CNW Group's website at www.newswire.ca. All material information on Romarco Minerals Inc. can be found at www.sedar.com. 

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Romarco Minerals Inc. 

Renmark Financial Communications Inc. 
Maurice Dagenais 514-939-3989 or via e-mail at mdagenais@renmarkfinancial.com