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Known as the "Golden Triangle," for its exceptional mineral endowment, the Iskut River area in British Columbia’s northwest is destined to be the province’s next major mining district. Home to larger cap groups such as NovaGold and Teck, the region is set to receive an infrastructure-boosting injection of $400M from the BC and Federal governments to bring power to the area. Among the players in the region, junior Romios Gold Resources Inc. (TSX-V: RG;, Nasdaq OTC: RMIOF; Frankfurt: D4R) holds an exceptional 67,825 hectare land holding, within which they have multiple properties, multiple zones to explore, and are neighbours to the Galore Creek Mining Corp (GCMC, a joint venture between NovaGold and Teck) property.

With a proposed mill and mine location nearby coming from the NovaGold/Teck joint venture on lands directly adjacent, Romios is in what should become a very active region. Studies done by British Columbia’s Ministry of Forests, Mines and Lands, called the region the Final Frontier of the Golden Triangle, and for good reason.

The region is believed to house between 200-300 million ounces of gold equivalent in deposits. How those ounces are dispersed over an overall area consisting of 200-300 square miles is what is worth following from this story. There is plenty of excitement coming from the BC Government with the potential that further development would bring. There wouldn’t be $400 million government investment if the excitement wasn’t warranted.

Romios has been drilling in the region for the past 3-4 years, and the plan is to go back and drill its Trek, Newmont Lake and Dirk properties this summer. Though smaller in comparison to NovaGold and Teck who are in the area and are in the next stage of resource development, Romios stands not only a good chance of developing porphyry resources, but from multiple zones. There is plenty of blue sky to work with, and the development of the area could be pretty rapid.

TREK PROPERTY

Located next to the Galore Creek Road, Romios’ Trek Property has the potential to become the next big copper porphyry play. To date, the company has spent approximately $12M on the project, with the plan to go back and drill again this summer.

Between 2008-2011, 35 holes have been drilled. Some of the highlights of the drill locations include:

DDH TRK 08-01: 32 m (105ft) 1.05 g/t Au, 26.01 g/t Ag and 2.06% Cu (within 131.4 m (431 ft) 0.39 g/t Au, 8.47 g/t Ag and 0.61% Cu)

DDH TRK 08-02: 27 m (88.6 ft) 3.27 g/t Au, 5.71 g/t Ag and 0.31% Cu (within 315.16 m (1,024 ft) 0.51 g/t Au, 1.71 g/t Ag and 0.10% Cu)

DDH TRK 11-32: 22.1 m (72.5 ft) 22.43 g/t Ag, 0.05 g/t Au and 1.25% Cu

NEWMONT LAKE PROPERTY

Among the Golden Triangle properties held by Romios, Newmont Lake currently has the only existing NI 43-101 Resource with 1.406 million tones, containing 200,000 oz gold, 6,790,000 lbs copper, and 291,000 oz silver.

But there is still much work to do on Newmont Lake, with approximately 20 other zones still yet to be drill tested. This summer is set to be quite active, with further geotechnical and definition drilling on the Northwest Zone resource, exploration drilling on the Ken Zone expected to commence in preparation of a further preliminary economic assessment ("PEA") on deck of the combined Newmont Lake and Dirk properties in the near future, assessing infrastructure including power and access from the newly announced AltaGas hydroelectric project and nearby road and development options.

Of the exploration that’s already taken place, highlights include:

Metallurgical drill hole: 0.44 m (1.45 ft.) of 753 g/t Au, 462 g/t Ag, and 0.69% Cu within an interval of 14.10 m (45.95 ft) of 26.44 g/t Au, 21.36 g/t Ag and 0.21% Cu

DDH R-08-01: 0.76 m (2.49 ft) 23.80 g/t Au, 59.0 g/t Ag and 0.03% Cu (within 19.46 m (63.8 feet) 1.92 g/t Au, 3.67 g/t Ag and 0.10 % Cu)

DDH R 08-05: 0.34 m (1.10 ft) 185.00 g/t Au, 108.00 g/t Ag and 3.28 % Cu (within 0.85 m (2.80 ft) 74.29 g/t Au, 44.07 g/t Ag and 1.40 % Cu)

DDH BH-07-09: 2.35 m (7.70 ft) 27.32 g/t Au (within 19.69 m (64.59 ft) 7.82 g/t Au)

DIRK PROPERTY

Romios drilled the first four holes on two zones last summer within the Dirk Property, which sits to the west of Newmont Lake. So far, the team has identified four zones in total, thus leaving two to still be drilled.

What the team likes about the Dirk is the very exciting copper-gold porphyry mineralization, leaving quite a bit of upside on the property. Along with the porphyry style mineralization, there is also potential for VMS.

Exploration to date includes surface assay highlights, such as:

• 8 x 1m chip samples, taken from the main Dirk showing with mineralization consisting of bornite, covellite and chalcopyrite that averaged 2.9% Cu and 0.64 g/t Au over the full eight metres (26.24 ft)
• A 3.0m chip sample from a second mineralized section of the Dirk Zone which assayed 6.21% Cu and 0.57 g/t Au
• Two grab samples from the Dirk Zone that assayed 3.08% Cu and 1.39 g/t Au, and 2.38% Cu and 2.06 g/t Au, respectively
• A grab sample from the Telena Zone assayed 2.07% Cu and 0.97 g/t Au

REMAINING PROPERTIES and INFRASTRUCTURE POTENTIAL

Rounding out the properties in Romios’ BC portfolio are the Royce/Porc options, the Andrei (which contains the Tangle and Tundra Zones), the SW Block, NE Block, NW Block and the JW Option. Though there hasn’t been as much work done on the remaining properties, they still sit directly near the GCMC properties and present further blue sky potential with the opportunity to develop additional porphyry resources.

As for the potential of the area, there are some significant improvements on deck. Noting the current lack of infrastructure, in particular power, a combined effort is going to help bring deposits into production.

Between both the provincial and federal government, $400M will be spent to bring power to the area. Having already awarded the construction contract, the expectation is that power will be available in 2013. Government geologists assessed the area, and gave a stamp of approval that led to the $400 million investment, hence the region is poised for a major mineral rush.

THE BOTTOM LINE

Romios has quite a bit of room to move around within the Golden Triangle, with 67,825 hectares and plenty of drilling on deck for 2012. The biggest question is why is Romios trading under $0.20? Perhaps the best answer to this is that they haven’t really been discovered yet, despite being around for over 15 years. They’re potentially looking at multi-million ounces of gold and silver and multi-billion pounds of copper, so perhaps it’s time they came out of hiding to stand in the spotlight.

Other companies in the region of note are:

• Pretivm Resources (TSX: PVG)(PXZWF.PK), trades at close to $18 per share and is just south of Romios
• Copper Fox Metals (TSX-V: CUU)(CPFXF.PK), trades around $1.30 and is completing its feasibility study by the end of the month
• Seabridge Gold (TSX: SEA)(AMEX: SA), trades at close to $21 and has a huge resource in the area

G. Joel Chury
The Bottom Line Report