Red Eagle Mining Corporation
TSX VENTURE : RD
OTCQX : RDEMF

Red Eagle Mining Corporation

August 08, 2012 05:00 ET

Red Eagle Mining Announces Positive Preliminary Metallurgical Results of 93% Gold Recoveries for Santa Rosa

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 8, 2012) - Red Eagle Mining Corporation (TSX VENTURE:RD)(OTCQX:RDEMF) is pleased to announce that it has received positive results for its metallurgical testwork on material from the San Ramon gold system in the Santa Rosa gold project in Colombia. Results to date show gold recoveries of 73% to 85% for conventional heap leach of the oxide material and 93% for carbon in leach (CIL) of the primary material.

Oxide samples with grades of 7.4 g/t Au (48 kg) and 2.4 g/t Au (120 kg) produced leach results over six days of between 65% and 86% gold recovery depending on the crush size from 1.00 inch to 0.25 inch (see Tables 1 and 2). The optimum result is likely a 0.5 inch crush size (giving recoveries of between 73% and 85%) which is easily achievable as the material is friable. Reagent consumptions are within the bounds of conventional heap leach operations. The samples were taken from near surface adits and trenches. The second larger sample was taken as the gold grade of the initial sample (news release dated June 19, 2012: http://redeaglemining.com/news/?pg=2&nyy=2012&nid=36) was unexpectedly high.

Table 1 - San Ramon Oxide Leach Results 7.4 g/t Au Sample
Top Size
(inch)
Au Recovery
144 Hours (%)
Ca(OH)Γéé
Addition (kg/t)
NaCN
Consumption (kg/t)
1.00 73.2 10.6 0.5
0.50 85.3 11.7 0.6
0.25 86.3 11.5 0.6
Table 2 - San Ramon Oxide Leach Results 2.4 g/t Au Sample
Top Size
(inch)
Au Recovery
144 Hours (%)
Ca(OH)Γéé
Addition (kg/t)
NaCN
Consumption (kg/t)
1.00 65.8 9.5 0.4
0.50 72.8 10.3 0.4
0.25 77.7 11.3 0.4

The primary (non-oxidised) sample with a grade of 0.9 g/t (54 kg) showed that over 25% of the gold could be recovered by gravity concentration. The flotation process was able to recover 95.6% of the Au in 12.5% of the mass. Cyanide leaching of the concentrate for 48 hours recovered 97.8% of the Au from the concentrate product. The overall process shows that high intensity cyanide leaching of the flotation concentrate is able to extract 93.5% of the Au. The cyanide and lime consumptions in the concentrate were 4.36 kg/t and 4.92 kg/t respectively. The sample was taken from a recently mined crosscut in fresh rock which exposed the shear.

Table 3 - San Ramon Primary Leach Results
Product Au (g/t) Distribution (%)
Pregnant Solution 2.48 93.5
Leach Residue 0.12 2.1
Flotation Concentrate 5.58 95.6
Flotation Tailings 0.04 4.4

"Based on the positive metallurgical results to date Red Eagle has commenced a bulk sampling program for a PEA level gold recovery study, comments Ian Slater, Chief Executive Officer. "These preliminary test results indicate that the processing routes will likely be heap leach for the oxidised material and flotation followed by gravity concentration and CIL for the primary material."

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 (open at depth). The mineralisation extends to surface where oxide channel sampling has averaged approximately 1.0 g/t Au to a depth of 50m. The 2012 work program for San Ramon includes:

  • Phase two core drill programme (24 holes totaling 5,400m) - complete
  • Phase three core drill programme in the near surface oxides on 50m spacing (25 holes totaling 1,922m completed to date out of a 5,000m programme) - commenced in June with all assays pending
  • Preliminary metallurgical test work - complete
  • PEA level metallurgical test work; and
  • NI 43-101 compliant measured and indicated resource.

Environmental base line studies and a Preliminary Economic Assessment (PEA) will commence during 2012 and be released during 2013.

The tests were conducted at the Acme Metallurgical Laboratory in Vancouver, Canada. 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 San Ramon gold system in the Santa Rosa 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 - Investor Relations
    James Beesley
    +1 604 682 4600 or Toll Free: +1 855 682 4600
    Mobile: +1 778 389 7715
    james@sequoiapartners.ca