Red Eagle Mining Announces Initial Santa Rosa NI 43-101 Resource
This resource estimate was prepared by Mine Development Associates in accordance with the definitions in the Canadian National Instrument 43-101 (NI 43-101) based on 23,000m drilled to date. For resource reporting, a cut-off grade of 0.30 g/t Au was determined to reflect expected mining and processing operating conditions. The majority of the Indicated resource occurs within 100m of the surface, where the deposit has been drilled to 50m centres. The resource below 100m is primarily an Inferred resource drilled to approximately 100m centres to a depth of 250m, which is currently defined as the likely extent of a potential open-pit. Wider-spaced drilling indicates that mineralisation is present at depths of over 300m.
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"We are extremely pleased by the results of this initial resource estimate for San Ramon and look forward to both increasing the quality and tonnage with an updated resource estimate targeted for release mid-year based on the current drilling," comments Ian Slater, Chief Executive Officer. "The resource estimate establishes San Ramon as one of the highest-grade deposits amenable to low-cost open-pit mining in Colombia."
The San Ramon structure trends east-west, dips 60°-70° to the north, extends over 1,800m, is up to 50m wide and is mineralised from surface. 23,000m of core have been drilled to date to a vertical depth of 250m to 300m with mineralisation remaining open at depth. Preliminary metallurgy test work returned an average gold recovery of 93.5% through flotation and cyanide leaching.
Anticipated news flow over the coming months will include:
- Results from the current 17,000 metre Phase Four drill programme (Q1 2013);
- Preliminary Economic Assessment (Q2 2013);
- Environmental Impact Assessment (Q2 2013);
- Updated NI 43-101 resource estimate (mid 2013); and
- Feasibility and permitting (Q1 2014).
About Red Eagle Mining
Red Eagle Mining Corporation is a well-financed gold exploration and development company with an experienced mine development team. Red Eagle Mining is currently developing the 390 km² Santa Rosa gold project located in Colombia. Santa Rosa is an intrusive hosted structurally-controlled quartz stockwork system within the prolific Antioquia Batholith. Gold mining within the Santa Rosa project pre-dates the 16th century when an estimated 30 million tonnes were mined. Santa Rosa is located 70km north of Medellin near the town of Santa Rosa de Osos in a region characterized by gently rolling hills and excellent infrastructure. Santa Rosa is also located approximately 30km west of AngloGold Ashanti's Gramalote gold deposit (2.5 million ounce M&I resource grading 0.8 g/t Au) and 40km east of Continental Gold's Buritica gold deposit (1.6 million ounce M&I resource grading 13.6 g/t Au). Red Eagle Mining also holds an extensive package of exploration ground in Colombia, including the Pavo Real project.
This news release includes forward-looking statements that are subject to risks and uncertainties. All statements within, other than statements of historical fact, are to be considered forward looking. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. There can be no assurances that such statements will prove accurate and, therefore, readers are advised to rely on their own evaluation of such uncertainties. We do not assume any obligation to update any forward-looking statements. This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.Contact Information:
Red Eagle Mining Corporation
Chief Executive Officer
+1 604 638 2545
+1 604 638 2546 (FAX)
Sequoia Partners - Investor Relations
+1 604 682 4600 or +1 855 682 4600 toll free
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