Construction at Red Eagle Mining’s flagship project, the San Ramon gold mine, continues unabated. First gold pour is on schedule for the second half of 2016.
The 100% owned 10,000 ha Santa Rosa gold project is an intrusive hosted structurally-controlled quartz stockwork system located within the prolific Antioquia Batholith near the town of Santa Rosa de Osos and 70 km north of Medellin. AngloGold Ashanti’s Gramalote project is located to the east and Continental’s Buritica project to the west. The project is easily accessible by road and infrastructure is readily available. The topography is gently undulating hills.
Gold mining within the Santa Rosa project pre-dates the 17th century when an estimated 30 Mt were mined. The San Ramon gold deposit (a single shear zone within the Santa Rosa project) trends east-west, dips 70o to the north, extends over 2 km, is up to 50 m in width and is mineralised from surface.
The October 2014 feasibility study outlines a 1,000 t/d operation producing an average annual production of 50,000 oz over an eight year mine life. Initial capital costs are $74 million. Cash costs are predicted at $596/oz or $84/t
San Ramon is an underground mine using conventional shrinkage stoping mining methods with delayed backfill. Processing incorporates single-stage crushing, SAG milling and floatation with concentrate re-grinding followed by conventional CIL processing the combined float tails and reground concentrate to produce gold dore with 96% recoveries.
