Red Eagle Mining Corporation

Red Eagle Mining Corporation

September 04, 2012 05:00 ET

Red Eagle Mining Intercepts 47.4 Metres Commencing From Surface at 1.34 Grams Gold Per Tonne in Oxides at Santa Rosa

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 4, 2012) - Red Eagle Mining Corporation (TSX VENTURE:RD)(OTCQX:RDEMF) is pleased to announce that the initial assay results have been received from the Phase Three oxide core drill programme at the San Ramon gold system located within the Santa Rosa gold project in Colombia. Highlights from the initial holes (SR-066 to SR-076) include intercepts in hole SR-072 of 47.4 metres commencing from surface at 1.34 grams gold per tonne and in hole SR-069 of 11.7 metres at 4.96 grams gold per tonne. These latest results confirm strong gold mineralisation from surface in the oxidised material.

Table 1 - San Ramon Phase Three Drill Intercepts
Hole ID From (m) To (m) Interval (m) Au g/t
SR-067 36.0 37.0 1.0 16.80
54.0 56.0 2.0 3.47
112.0 123.0 11.0 0.31
SR-068 46.4 58.0 11.6 2.74
SR-069 68.4 80.1 11.7 4.96
SR-070 0.0 3.0 3.0 0.86
41.0 58.0 17.0 1.02
SR-071 37.6 66.8 29.2 0.80
SR-072 0.0 47.4 47.4 1.34
incl. 43.2 44.0 0.9 20.70
SR-073 0.0 9.6 9.6 1.02
35.8 51.8 16.0 1.71
SR-074 0.0 16.4 16.4 0.54
33.7 42.2 8.5 0.50
SR-075 0.0 24.4 24.4 0.60
35.1 38.2 3.1 0.56
SR-076 5.2 40.2 35.0 0.58

"Our ongoing Phase Three oxide delineation drilling and metallurgical testwork results at San Ramon are confirming the open pit conventional heap leach potential of San Ramon," comments Ian Slater, Chief Executive Officer. "The metallurgical programme to date has given heap leach recoveries of 73% to 85% from this 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 mineralised from surface. Phase One and Two drilling intercepts in the primary mineralisation averaged 2.1 g/t Au to a vertical depth of over 250m. The mineralisation continues to be open at depth. The Phase Three 5,000m core drill programme is delineating the oxide mineralisation on 50m centres from surface to the primary mineralisation. 37 holes totaling 2,671m have been completed to date. Assays are pending on 26 holes (SR-077 to SR-102). The work program for the remainder of 2012 includes:

  • Preliminary Economic Assessment level metallurgical test work;
  • Environmental base line studies;
  • NI 43-101 compliant measured and indicated resource report; and
  • Preliminary Economic Assessment (to be released in the first half of 2013).

Table 1 summarizes the significant (+0.20 g/t) uncut gold intercepts from Phase Three core drill holes SR-066 to SR-076 (see Figure 1 - Drill Hole Plan and Figure 2 - Long Section). 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 7m below cut-off. Hole SR-066 did not intercept economic mineralisation. For pictures of the drill core see Red Eagle's photostream on flickr.

Table 2 - Drill Hole Specifications
Hole Easting Northing Elevation (m) Azimuth Dip EOH (m)
SR-066 857972 1223165 2498 180 -50 88
SR-067 857972 1223165 2498 180 -75 127
SR-068 857928 1223151 2473 180 -50 65
SR-069 857928 1223151 2473 180 -75 85
SR-070 857870 1223160 2469 180 -50 64
SR-071 857829 1223168 2468 180 -50 70
SR-072 857876 1223133 2476 180 -75 55
SR-073 857876 1223133 2476 180 -90 52
SR-074 857478 1223121 2518 0 -60 54
SR-075 857478 1223121 2518 0 -75 61
SR-076 857764 1223149 2478 180 -50 67

Quality Control and Assurance (QC/QA)

All drill samples were collected with a diamond core drill rig using approximately one metre sample intervals of whole core 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 50g charge at 250 mesh pulp with an AAS finish, or if over 10 g/t Au, were re-assayed and completed with a gravimetric finish. The coarse crush split reject (<13mm) was retained for metallurgical testwork. 10% of a range of selected assays over 0.2 g/t Au, with an average of approximately 1.0 g/t Au were taken from the middling split reject and submitted for metallic screening analysis at 150 mesh pulp followed by fire assay and both AAS and gravimetric finish. Any discrepancies were reanalysed from the remaining middling reject by gravity concentration and acid digest. 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 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.

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 Corporation
    Ian Slater
    Chief Executive Officer
    +1 604 638 2545
    +1 604 638 2546 (FAX)

    Sequoia Partners - Investor Relations
    James Beesley
    +1 604 682 4600 or +1 855 682 4600 toll free
    +1 778 389 7715 mobile