VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 18, 2014) - Red Eagle Mining Corporation (TSX VENTURE:RD)(OTCQX:RDEMF) is pleased to announce that Lycopodium have commenced a Definitive Feasibility Study for the San Ramon Gold Deposit within its 100% owned Santa Rosa Gold Project located in Antioquia, Colombia. Lycopodium is a leading international project management and engineering firm. The Feasibility Study will be completed with the participation of globally recognized engineering consultants, including Mine Development Associates (resource and reserve estimation and mine design), Golder Associates (tailings management and geotechnical) and McClelland Laboratories (metallurgy).
The Feasibility Study entails the development of an engineered construction and operating plan with considerations for social, environmental and water management, permitting, geotechnical engineering, hydro-geology, metallurgical testing, process design and mine planning. An Environmental Impact Assessment has already been completed by Tetra Tech. The Feasibility Study is expected to be completed during 2014.
The Preliminary Economic Assessment ("PEA") for the San Ramon Gold Deposit (please see news release dated September 19, 2013) recommended proceeding to feasibility. Highlights include pre-tax estimated Net Present Value (5%) of $152 million, Internal Rate of Return of 47%, payback in 1.4 years and average cash costs of $540/ounce (all amounts in US$).
|Table 1 - Summary of San Ramon Economic Results
|Net Cash Flow
|Net Present Value (5%)
|Internal Rate of Return
|Table 2 - Summary of San Ramon Key PEA Data
|Average Annual Production
|Life of Mine ("LOM")
|Initial Capex (incl. $11M contingency)
||$540/ounce or $76/tonne
|Years 1-5 Fully Diluted Processed Grade
||5.38 grams gold per tonne
|LOM Fully Diluted Processed Grade
||4.76 grams gold per tonne
|CIL Gold Recovery
The PEA was prepared by Mine Development Associates in accordance with the definitions in Canadian National Instrument 43-101 ("NI 43-101"). The PEA is considered preliminary in nature. It includes Inferred mineral resources that are considered too speculative to have the economic considerations applied that would enable classification as mineral reserves. There is no certainty that the conclusions within the PEA will be realised. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The technical information contained in this news release has been reviewed and approved by Red Eagle Mining's Vice President of Exploration, Jeff Toohey, P.Eng., who is a Qualified Person as defined under NI 43-101.
About Red Eagle Mining
Red Eagle Mining Corporation is a well-financed gold exploration and development company with an experienced mine-development team. Management is focused on building shareholder value through discovering and developing gold projects with low costs and low technical risks in Colombia, a jurisdiction with prolific historic production but until recently limited modern exploration. Red Eagle Mining is developing the 320 km2 historic Santa Rosa Gold Project located in the Antioquia Batholith. Development will initially commence with the San Ramon Gold Deposit where a positive Preliminary Economic Assessment supports project advancement. Feasibility and permitting are currently underway.
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. 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.