Red Eagle Mining Corporation
TSX VENTURE : RD
OTCQX : RDEMF

Red Eagle Mining Corporation

July 31, 2012 05:00 ET

Red Eagle Mining Announces Final Phase Two Drilling Results for Santa Rosa

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 31, 2012) - Red Eagle Mining Corporation (TSX VENTURE:RD)(OTCQX:RDEMF) is pleased to announce that all assay results have now been received from the 24 hole, 5,400m phase two core drill program at the San Ramon gold system located within the Santa Rosa gold project in Colombia. Highlights from the remaining four holes (SR-062 to SR-065) include intercepts in hole SR-064 of 0.8 metres at 41.50 grams gold per tonne and in hole SR-065 of 23.3 metres at 1.44 grams per tonne gold. These latest results continue to show strong gold mineralisation over good widths. The most significant intercepts from phase two were previously released:

  • SR-042 - 66.9m at 3.06 g/t Au incl. 6.0m at 31.85 g/t Au
  • SR-045 - 35.5m at 2.28 g/t Au incl. 1.5m at 28.26 g/t Au and 1.9m at 14.36 g/t Au
  • SR-053 - 17.7m at 17.14 g/t Au incl. 7.0m at 41.53 g/t Au
  • SR-060 - 11.4m at 16.04 g/t Au incl. 2.0m at 30.73 g/t Au and 3.5m at 29.29 g/t Au

"Our phase two delineation drilling at San Ramon was successfully completed along the entire 1.8km strike and discovered new high grade mineralisation over significant intercepts. Phase two was focused on delineating the primary mineralisation that could potentially be mined in an open pit from approximately 100m to 200m in depth. The average grade of the drilling intercepts from all core drilling to date has increased to 2.1 g/t Au from 1.2 g/t Au," comments Ian Slater, Chief Executive Officer. "We are now looking forward to releasing the results from this summer's phase three delineation drilling program which will focus on the oxide and transitional mineralisation from surface to up to 100m in depth. Together with the existing results this shallow drilling will culminate in an initial NI 43-101 resource report by the end of 2012."

The San Ramon structure trends east-west, dips 60°-70° to the north, extends over 1,800m, is up to 60m in width and is exposed at surface. Drilling intercepts to date average 2.1 g/t Au to a vertical depth of over 250m. The mineralisation extends to surface where oxide channel sampling has averaged approximately 1.0 g/t Au and is open at depth. The 2012 work program for San Ramon includes:

  • Phase two core drill program (24 holes totaling 5,400m) - complete
  • Phase three core drill program in the near surface oxides on 50m spacing (18 holes totaling 1,221m completed to date out of a 5,000m programme) - commenced in June
  • Preliminary metallurgical test work - complete
  • Scoping study level metallurgical test work
  • Environmental base line studies
  • NI 43-101 compliant measured and indicated resource

Table 1 - San Ramon Phase Two Drill Intercepts

Hole ID From (m) To (m) Interval (m) Au (g/t)
SR-041 68.4 75.4 7.0 1.96
incl. 74.9 75.4 0.5 22.10
113.0 147.6 34.6 0.63
incl. 146.5 147.6 1.1 8.35
SR-042 138.7 205.6 66.9 3.06
incl. 184.0 190.0 6.0 31.85
SR-044 213.9 247.9 34.0 0.71
SR-045 115.6 117.6 2.0 6.87
147.0 182.5 35.5 2.28
incl. 149.9 151.4 1.5 28.26
incl. 173.9 175.8 1.9 14.36
SR-047 162.0 168.0 6.0 0.44
174.0 223.0 49.0 1.08
incl. 180.0 181.0 1.0 11.70
incl. 220.0 223.0 3.0 6.10
SR-048 114.8 125.9 11.1 1.77
incl. 116.8 117.8 1.0 14.40
SR-049 127.0 131.8 4.8 6.14
SR-050 95.2 98.6 3.4 1.21
SR-052 161.6 172.7 11.1 1.34
incl. 164.6 165.6 1.0 8.09
SR-053 52.5 54.5 2.0 2.37
137.6 141.6 4.0 0.67
162.8 166.7 3.9 1.00
179.2 183.2 4.0 0.63
198.3 216.0 17.7 17.14
incl. 204.0 211.0 7.0 41.53
SR-055 212.7 213.2 0.5 8.31
370.5 374.5 4.0 1.22
SR-056 128.5 147.1 18.6 1.52
incl. 145.1 147.1 2.0 7.61
SR-057 64.2 75.8 11.6 2.87
89.4 91.4 2.0 1.77
SR-058 106.7 107.7 1.0 5.91
125.1 133.0 7.9 2.21
incl. 131.1 131.6 0.5 17.80
SR-059 274.9 284.6 9.7 0.79
SR-060 143.3 154.7 11.4 16.04
incl. 143.3 145.3 2.0 30.73
incl. 151.2 154.7 3.5 29.29
197.3 205.5 8.2 2.29
incl. 204.5 205.5 1.0 15.10
217.5 218.5 1.0 3.43
SR-061 93.0 96.0 3.0 0.88
180.0 187.5 7.5 1.75
incl. 185.1 185.6 0.5 20.70
195.5 196.2 0.7 3.70
SR-063 238.2 243.5 5.3 1.48
SR-064 41.8 42.8 1.0 4.69
136.7 140.0 3.3 10.66
incl. 138.2 139.0 0.8 41.50
SR-065 136.3 159.6 23.3 1.44

Table 2 - Drill Hole Specifications

Hole Easting Northing Elevation (m) Azimuth Dip EOH (m)
SR-041 857796 1223267 2445 180 -45 178
SR-042 857796 1223267 2455 180 -70 239
SR-043 856191 1223330 2462 na -90 194
SR-044 857907 1223294 2470 180 -65 290
SR-045A 857694 1223258 2454 180 -75 199
SR-046 856191 1223330 2462 180 -80 162
SR-047 857604 1223297 2450 180 -70 264
SR-048 857918 1223229 2467 180 -45 151
SR-049 856204 1223390 2478 180 -45 148
SR-050 857605 1223231 2464 175 -45 169
SR-051 856204 1223390 2478 180 -75 227
SR-052 856516 1223311 2471 180 -75 209
SR-053 857493 1223275 2473 180 -75 250
SR-054 856804 1223264 2475 180 -45 133
SR-055 857402 1223391 2511 180 -70 404
SR-056 856804 1223264 2475 180 -75 216
SR-057 856583 1223279 2465 180 -45 111
SR-058 856583 1223279 2465 180 -75 194
SR-059 857232 1223325 2486 180 -75 321
SR-060 857313 1223269 2510 180 -90 235
SR-061 856965 1223269 2538 175 -75 214
SR-062 857008 1223437 2507 170 -45 330
SR-063 856909 1223292 2522 185 -75 253
SR-064 856909 1223292 2522 190 -45 170
SR-065 856724 1223287 2463 180 -75 187

Table 1 summarizes the significant (+0.20 g/t) uncut gold intercepts from all phase two core drill holes (see Figure 1 - Drill Hole Plan http://redeaglemining.com/siteFiles/89/files/maps-lg/Stage1_San_Ramon_Drill_Map_June_2012Large.jpg and Figure 2 - Long Section http://redeaglemining.com/siteFiles/89/files/maps-lg/SR_SE_Sector_Long_Section_Schematic_22June12-Large.jpg). All results have been previously released except for SR-062 to SR-065, which are released herein. True widths are estimated to be 70-90% of the intercepts and vertical depths are estimated to be 70-90% of the drilled depths reported below. Internal dilution within intercepts is limited to the inclusion of runs of no more than 6m below cut-off. Holes SR-043, SR-046, SR-051, SR-054 and SR-062 did not intercept economic mineralisation. For pictures of the drill core see Red Eagle's photostream on Flickr http://www.flickr.com/photos/redeaglemining/sets/.

Quality Control and Assurance (QC/QA)

All drill samples were collected with diamond core drill rigs using approximately one metre sample intervals and following standard industry practice. Acme Analytical Laboratories prepped and screened samples in Medellin, Colombia and assayed samples in Santiago, Chile. Gold values were determined by fire assay of a 30g charge with an AA finish, or if over 10 g/t Au, were re-assayed and completed with a gravimetric finish. QC/QA included the insertion and continual monitoring of standards and blanks into 10% of the sample stream batches, along with check assays conducted at alternate accredited laboratories.

The scientific and technical information contained in this news release has been reviewed and approved by Michael Johnson, P.Geo., who is a "Qualified Person" as defined under National Instrument 43-101.

About Red Eagle Mining

Red Eagle Mining Corporation is a well-financed gold exploration and development company with an experienced exploration and management team. Red Eagle Mining is currently developing the Santa Rosa gold project in Colombia. Santa Rosa is an intrusive hosted structurally-controlled quartz stockwork system within the prolific Cretaceous 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 50km west of AngloGold Ashanti's Gramalote gold deposit (2.5 million ounce M&I resource grading 0.8 g/t Au) and 60km east of Continental Gold's Buritica gold deposit (630,000 ounce M&I resource grading 17.8 g/t Au). Red Eagle Mining also holds an extensive package of exploration ground in Colombia, including the Pavo Real project in the Mid-Cauca gold belt. For further information on Red Eagle Mining please refer to our website www.redeaglemining.com.

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
    Ian Slater
    Chief Executive Officer
    +1 604 638 2545
    +1 604 638 2546 (FAX)
    www.redeaglemining.com

    Sequoia Partners
    James Beesley
    Investor Relations
    +1 604 682 4600 or +1 855 682 4600 toll free
    +1 778 389 7715 mobile
    james@sequoiapartners.ca