Red Eagle Mining Intercepts 4.45 Metres at 15.25 Grams Gold Per Tonne and 2.30 Metres at 35.72 Grams Gold Per Tonne at Santa Rosa
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/09/13 -- Red Eagle Mining Corporation (TSX VENTURE: RD)(OTCQX: RDEMF) is pleased to announce additional assay results from the Phase Four drill programme at the San Ramon Deposit, Santa Rosa Gold Project, Antioquia, Colombia. Highlights from an additional 15 drill holes (SR-197 to SR-211) include intercepts:
-- SR-198 - 2.40m at 8.66 g/t Au from 74.50m down hole (incl. 0.59m at
21.70 g/t Au)
-- SR-202 - 2.30m at 35.72 g/t Au from 129.40m down hole (incl. 0.70m at
77.60 g/t Au)
-- SR-203 - 10.60m at 3.07 g/t Au from 132.95m down hole (incl. 1.35m at
19.40 g/t Au)
-- SR-204 - 11.70m at 1.75 g/t Au from 178.00m down hole (incl. 1.20m at
8.37 g/t Au)
-- SR-207 - 16.10m at 1.03 g/t Au from 127.00m down hole (incl. 0.70m at
8.81 g/t Au)
-- SR-211 - 23.30m at 3.50 g/t Au from 91.10m down hole (incl. 4.45m at
15.25 g/t Au)
"Our delineation drilling continues to confirm continuity of strong high grade gold mineralisation within the extent of a potential open pit at San Ramon", comments Jeff Toohey, Vice President Exploration. "In addition, we look forward to upcoming results from current drilling at depth."
The current 22,000m Phase Four drill programme is planned to be completed in May 2013. 19,040m in 86 holes have been drilled to date with assays pending on the latest 14 holes (SR-212 to SR-225). Results from Phase Four drill holes SR-140 to SR-196 were previously announced (news releases dated March 4, 2013 and March 19, 2013). An updated Resource Estimate planned for release mid 2013 will incorporate infill drilling to 50m centres to a depth of 250m which is expected to upgrade a majority of the existing Inferred Resources below 100m to the Indicated classification. In addition, the San Ramon Gold Deposit remains open at depth and has the potential to be mined from underground (approximately 50% of the ounces in the current Inferred Resource average over 5g/t Au). Therefore, the updated Resource Estimate will also incorporate broad spaced drilling from approximately 250m to 500m depth to establish an Inferred Resource suitable for potential development by underground mining methods.
The San Ramon deposit trends east-west, dips 70 degrees to the north, extends over 1,900m, is up to 50m wide and is mineralised from surface. A total of 23,000m of core in 139 holes have been drilled through Phase Three to a vertical depth of 250m to 300m with mineralisation remaining open at depth. The initial Resource Estimate includes an Indicated Resource of 7.34 million tonnes at 1.37 g/t Au containing 322,000 ounces gold and an Inferred Resource of 9.45 million tonnes at 1.50 g/t Au containing 456,000 ounces gold. All of these Resources occur at the San Ramon Deposit, one of numerous gold prospects undergoing exploration at Santa Rosa. Metallurgy test work to date has returned an average CIL gold recovery of 94%.
Anticipated news flow over the coming months includes:
-- Final results from the current 22,000m Phase Four drill programme
(April/May 2013);
-- Updated NI 43-101 Resource Estimate (mid 2013);
-- Preliminary Economic Assessment (Q3 2013);
-- Environmental Impact Assessment (Q3 2013); and
-- Feasibility and permitting (2014).
Table 1 summarizes the significant (+0.30 g/t) uncut gold intercepts from Phase Four core drill holes SR-197 to SR-211 (also see Figure 1 - Drill Hole Plan and Table 2 - Drill Hole Specifications). 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. Drill assays were composited by length-weighted averaging into intersections using a 0.30 g/t Au cut-off grade. Due to the mining method and mining selectivity contemplated for the deposit, internal dilution was included in some intersections where considered appropriate for mining continuity. Hole SR-199 was abandoned. For photographs of the drill core see Red Eagle's photostream on flickr.
Quality Assurance and Quality Control
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 (less than 16mm) 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. QA/QC 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 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. Red Eagle Mining is developing the 390 km2 Santa Rosa Gold Project located in Antioquia, Colombia. Santa Rosa is an intrusive hosted structurally-controlled quartz stockwork system within the prolific Antioquia Batholith. Gold mining within the Santa Rosa Gold 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 approximately 30km west of AngloGold Ashanti's Gramalote gold deposit (2.5 million ounce M&I resource grading 0.8 g/t Au) and 40km east of Continental Gold's Buritica gold deposit (1.6 million ounce M&I resource grading 13.6 g/t Au). Red Eagle Mining holds an extensive package of exploration ground throughout Colombia, including the Pavo Real Gold Project.
Table 1 - San Ramon Additional Phase Four Drill Intercepts
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Hole ID From (m) To (m) Length (m) Au (g/t)
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SR-197 216.50 220.35 3.85 3.75
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SR-198 74.50 76.90 2.40 8.66
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incl. 75.26 75.85 0.59 21.70
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SR-200 108.35 109.45 1.10 0.94
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128.50 132.65 4.15 2.75
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SR-201 143.50 145.80 2.30 1.14
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174.80 175.45 0.70 7.59
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182.60 185.00 2.40 0.97
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189.40 190.00 0.60 2.13
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203.65 204.25 0.60 8.33
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212.77 213.60 0.83 3.08
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SR-202 55.20 57.50 2.30 1.44
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incl. 55.20 55.85 0.65 4.51
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112.00 114.30 2.30 5.14
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122.00 123.00 1.00 1.48
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129.40 131.70 2.30 35.72
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incl. 131.00 131.70 0.70 77.60
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SR-203 132.95 143.55 10.60 3.07
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incl. 139.95 141.30 1.35 19.40
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154.65 156.10 1.45 0.76
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SR-204 103.20 104.60 1.40 3.06
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178.00 189.70 11.70 1.75
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incl. 180.00 181.20 1.20 8.37
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SR-205 164.25 165.00 0.75 1.63
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174.50 175.05 0.55 8.30
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SR-206 151.35 152.05 0.70 17.00
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325.55 328.05 2.50 2.66
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incl. 325.55 326.55 1.00 5.63
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338.35 339.15 0.80 1.49
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345.70 346.40 0.70 1.73
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373.30 374.00 0.70 1.52
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SR-207 31.30 32.10 0.80 17.00
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60.20 61.20 1.00 1.42
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84.40 85.20 0.80 1.92
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127.00 143.10 16.10 1.03
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incl. 141.70 142.40 0.70 8.81
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SR-208 26.30 28.00 1.70 1.42
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195.10 195.70 0.60 3.85
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235.90 239.60 3.70 1.20
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SR-209 95.20 96.75 1.55 0.78
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SR-210 143.50 153.60 10.10 0.95
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incl. 152.90 153.60 0.70 5.26
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SR-211 18.35 19.35 1.00 1.75
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42.70 43.85 1.15 1.36
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91.10 114.40 23.30 3.50
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incl. 104.20 108.65 4.45 15.25
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incl. 104.20 105.10 0.90 36.90
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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.
Contacts:
Red Eagle Mining Corporation
Ian Slater
Chief Executive Officer
+1 604 638 2545
+1 604 638 2546 (FAX)
www.redeaglemining.com
Red Eagle Mining Corporation
James Beesley
Investor Relations
+1 604 682 4600 or Toll Free: +1 855 682 4600
Mobile: +1 778 389 7715
james@sequoiapartners.ca