Red Eagle nears gold production in Colombia

Red Eagle Mining’s 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 lies 70 km to the north of Medellin. Gold mining within the Santa Rosa gold project area pre-dates the 17th century when an estimated 30 Mt were mined.

The San Ramon gold mine (a single shear zone within the Santa Rosa gold project) trends east-west, dips 70o to the north, extends over 2 km, is up to 50 m in width and is mineralized from surface.

  • Production of 1,000 t/d and 2017 estimated production of 70,000 oz
  • Cash cost $596/oz; All-In Sustaining Cost $647/oz
  • Post-tax project economics IRR 53% and payback within 1.3 years (at $1,300 Au)
  • Process – SAG mill (P80 125 micron), flotation and CIL circuit
  • Straightforward metallurgy with 96% recoveries – Au/Ag dore
  • Mining method – Shrinkage stoping with delayed fill
  • Dry stacked tailings – 60% used as backfill
  • Opportunity to ramp up 2,000 t/d with near mine, drill ready regional exploration targets (~2 km)
  • Excellent infrastructure (water, roads, grid power, local staffing)

The San Ramon gold mine deposit is open at strike to the east and also at depth, as reserves have only been delineated to 250 m in depth. Deep drill holes (~600 m) confirm mineralization, but currently Red Eagle Mining lack the drill density at depth for resource estimation. The deposit appears to plunge eastward onto ground recently acquired from AngloGold Ashanti. Exploration success on strike and at depth will increase the mine life at the San Ramon mine. Should regional exploration targets (i.e. Guacamayas & Canada Rica) prove economic, they will provide the additional tonnage to ramp up the process plant from to 2,000 t/d.

Stracon GyM, part of the Graña y Montero Group, is Red Eagle Mining’s mining services contractor. The underground mining operations are led by a collaborative committee composed of Stracon GyM and Red Eagle Mining senior management. Stracon GyM is also a 15% shareholder of Red Eagle Mining’s equity insuring all parties’ interests are aligned.

Lycopodium led process and plant design, feasibility study, detailed engineering, plant construction and EPCM for the San Ramon mine.

Mine Development Associates has been responsible for mine design and resource & reserve estimation.

Golder Associates provides geotechnical, tailings management and hydrology studies.