NEW WESTMINSTER, BRITISH COLUMBIA--(Marketwire - Dec 11, 2012) - Cabo Drilling Corp. (TSX VENTURE:CBE)(DHL.F) ("Cabo Drilling" or the "Company") announces that Cabo Drilling (Colombia) Corp. ("Cabo Colombia") has renewed its contract with Red Eagle Mining Corporation ("Red Eagle") for an additional 17,000 meters of drilling on Red Eagle''s Santa Rosa project in the District of Antioquia. Under the terms of the renewed contract Cabo has agreed to supply two additional man-portable drill rigs; the additional rigs will join two skid mounted rigs that are already in place on the property. Both parties have agreed to proceed with the next phase of the drilling program under the terms of the previous contract, signed June 2011. Three rigs are currently drilling on the property and the fourth rig, a CABO-1000, recently arrived on site.
"Although the economic boom in Colombia has slowed over the past year, Cabo Colombia continues to expand operations with key repeat clientele and is adding newer modern drills to our fleet," comments Herb Butler, General Manager of Cabo''s Central American operations. "People are starting to see the positive impact that Cabo is having in Colombia when partnered with clients like Red Eagle, and they are experiencing the Social and Economic benefits that Mining companies bring to their communities."
Cabo Colombia, with two field offices in Colombia, continues to train Colombian Drillers and build a local workforce. The main office in Bucaramanga supports the Santander District and a satellite office in Medellin supports the Antioquia District. The Santander and the Antioquia Districts are the two most actively explored districts in Colombia and have strong Artisanal Mining histories.
About Red Eagle Mining Corporation
Red Eagle Mining Corporation is a well-financed gold exploration and development company with an experienced mine development team. Red Eagle Mining is currently developing the 390 km² Santa Rosa gold project located in Colombia. Santa Rosa is an intrusive hosted structurally-controlled quartz stock-work 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 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 also holds an extensive package of exploration ground in Colombia, including the Pavo Real project in the Mid-Cauca gold belt. Red Eagle is committed to developing the first modern gold mine in Colombia.
About Cabo Drilling Corp. (TSX VENTURE:CBE)
Cabo Drilling Corp. is a drilling services company headquartered in New Westminster, British Columbia, Canada. The Company provides mining specialty drilling services through its Canadian divisions in Surrey, British Columbia; Montréal, Quebec; Kirkland Lake, Ontario; and Springdale, Newfoundland; as well as Cabo Drilling (America) Inc. of the United States; Cabo Drilling (Panama) Corp. of Panama, Republic of Panama; Cabo Drilling (Colombia) Corp. of Colombia; Balkan States Drilling SH.P.K. of Tirana, Albania; and Cabo Drilling (International) Inc. The Company''s common shares trade on the Frankfurt Exchange under the symbol: DHL and on the TSX Venture Exchange under the symbol: CBE.
ON BEHALF OF THE BOARD
John A. Versfelt, Chairman, President and CEO
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes and other business transactions timing. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.