Red Eagle Mining Intercepts 6.0 Metres at 31.85 Grams Per Tonne Gold at Santa Rosa
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/13/12 -- Red Eagle Mining Corporation (TSX VENTURE: RD)(OTCQX: RDEMF), is pleased to announce the first and only assay results received to date on the in-progress, phase two drill program at the San Ramon deposit in the Santa Rosa gold project in Colombia. The first results include strong gold mineralization in both core drill holes SR-041 and SR-042, with the most significant intercept being in hole SR-042 which included 6.0 metres at 31.85 grams per tonne gold.
Phase two consists of 24 core drill holes (see Figure 1 - Drill Hole Plan: http://media3.marketwire.com/docs/RD_Fig1.pdf), of which 19 holes totaling 3,995m have been completed to date with assays pending on 17 holes, numbered SR-043 to SR-059. The following table summarizes significant gold intercepts in the first two holes which were drilled from the same pad at inclinations of 45 degrees and 70 degrees and confirm that strong gold mineralization extends to depth (see Figure 2 - Cross Section B-B': http://media3.marketwire.com/docs/RD_Fig2.pdf). True widths are estimated to be close to 90% and 70% of the intercepts and vertical depths are estimated to be close to 70% and 90% of the drilled depths for holes SR-041 and SR-042 respectively, as reported below. All assay results are uncut.
Table 1 - San Ramon Drill Intercepts
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From To Interval
Hole ID (m) (m) (m) Au g/t
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SR-041 68.40 75.40 7.00 1.96
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incl. 74.90 75.40 0.50 22.10
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113.00 147.60 34.60 0.63
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incl. 146.50 147.60 1.10 8.35
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SR-042 138.70 205.60 66.90 3.06
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incl. 184.00 190.00 6.00 31.85
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"Our drilling at San Ramon continues to deliver high grade intercepts, with today's results of six metres at nearly an ounce per ton of gold confirming the robustness of the deposit," comments Ian Slater, Chief Executive Officer. "Both holes also significantly increased the width of the known gold mineralization and this was just the first two holes back out of sixty being drilled this summer."
San Ramon trends east-west, dips 65-70 degrees to the north, extends over 1,800m, is up to 60m in width and is exposed at surface. Wide-spaced drilling intercepts from phase one averaged approximately 1.2 g/t Au to a vertical depth of over 250m. The mineralisation extends to surface where channel sampling has also averaged approximately 1 g/t Au. The 2012 work program for San Ramon includes the phase two core drill program (24 holes totaling an estimated 5,000m), a phase three core drill program in the near surface oxides over the entire known gold mineralisation which will commence in June (36 holes totaling an estimated 5,000m), preparation of a NI 43-101 resource and a preliminary metallurgical test work program.
Phase One Results
All the remaining assays have now been received from the phase one drilling program. Results from phase one drilling at San Ramon were previously reported (see news release dated January 17, 2012 - http://redeaglemining.com/news/?nid=17). Core drill holes SR-024 to SR-040 were exploratory holes targeting a few of the many currently identified anomalies outside of the San Ramon deposit and, while typically containing thin gold bearing veins, did not return economically significant results. With the exception of holes SR-029 and SR-031 which targeted the Malambo prospect in the Northwest Sector (which contains a large concentration of historic workings). The following table summarizes significant gold intercepts from the two holes drilled in the Malambo prospect to date.
Table 2 - Malambo Drill Intercepts
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From To Interval
Hole ID (m) (m) (m) Au g/t
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SR-029 140.00 141.00 1.00 6.12
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363.00 364.00 1.00 9.66
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SR-031 136.50 138.00 1.50 5.18
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165.35 166.50 1.15 13.30
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A Mobile Metal Ion (MMI) systematic soil sampling program has been completed over the entire Santa Rosa project with assays highlighting multiple gold and copper anomalies in both the Northwest and Central Sectors that have not yet been drill tested. In addition, over 400 historic adits have now been mapped and sampled to date. Active exploratory work continues over the entire project area.
Table 3 - Drill Hole Specifications
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Elevation EOH
Hole Easting Northing (m) Azimuth Dip (m)
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SR-024 857403 1223497 2496 0 -45 301
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SR-025 854294 1223584 2480 180 -45 301
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SR-026 854294 1223584 2480 150 -45 314
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SR-027 857403 1223497 2496 180 -45 151
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SR-028 854404 1223747 2471 180 -45 325
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SR-028A 854404 1223747 2471 180 -45 636
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SR-029 852389 1224776 2514 180 -45 401
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SR-030 852389 1224776 2514 230 -45 401
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SR-031 853006 1224396 2554 220 -45 305
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SR-032 859267 1222803 2491 180 -45 129
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SR-032A 859267 1222803 2491 180 -45 355
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SR-033 856004 1223542 2524 230 -45 300
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SR-034 860246 1222491 2490 90 -60 193
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SR-035 860246 1222491 2490 180 -45 400
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SR-036 856993 1222294 2515 0 -50 321
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SR-037 858172 1223205 2448 180 -45 256
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SR-038 858177 1223306 2448 0 -45 340
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SR-039 857335 1223762 2506 65 -45 131
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SR-040 857335 1223762 2506 65 -65 80
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SR-041 857796 1223267 2445 180 -45 178
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SR-042 857796 1223267 2455 180 -70 239
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Quality Control and Assurance
All drill samples were collected with two diamond 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 Colombian gold exploration and development company with an experienced exploration and management team. Red Eagle Mining is currently exploring two properties in Colombia, Santa Rosa and Pavo Real. 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). Pavo Real is an extensive project within the Mid-Cauca gold belt containing both a sedimentary hosted gold system and a 15km long copper/gold/silver skarn formation hosting significant high grade brownfield mines. For further information on Red Eagle Mining please refer to our website www.redeaglemining.com, or contact Ian Slater, Chief Executive Officer.
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
Kevin Arias
Manager Corporate Communications
+1 778 372 2556
arias@redeaglemining.com
www.redeaglemining.com
Sequoia Partners
James Beesley
Investor Relations
+1 604 682 4600 or +1 855 682 5888 toll free
james@sequoiapartners.ca