VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan 21, 2013) - Red Eagle Mining Corporation (TSX VENTURE:RD)(RDEMF) is pleased to announce that an initial NI 43-101 resource estimate for its 100% controlled Santa Rosa gold project has established an Indicated mineral resource of 7.34 million tonnes at 1.37 grams gold per tonne containing 322,000 ounces gold and an Inferred mineral resource of 9.45 million tonnes at 1.50 grams gold per tonne containing 456,000 ounces gold. All of these announced resources occur at the San Ramon deposit, one of numerous gold prospects undergoing exploration by Red Eagle Mining at the 390 km² Santa Rosa gold project. An updated resource estimate incorporating an additional 17,000 metres of drilling currently in progress at San Ramon is targeted to be released mid-2013.
This resource estimate was prepared by Mine Development Associates in accordance with the definitions in the Canadian National Instrument 43-101 (NI 43-101) based on 23,000m drilled to date. For resource reporting, a cut-off grade of 0.30 g/t Au was determined to reflect expected mining and processing operating conditions. The majority of the Indicated resource occurs within 100m of the surface, where the deposit has been drilled to 50m centres. The resource below 100m is primarily an Inferred resource drilled to approximately 100m centres to a depth of 250m, which is currently defined as the likely extent of a potential open-pit. Wider-spaced drilling indicates that mineralisation is present at depths of over 300m.
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Since the cut-off date for the resource estimate, an additional 17,000m drill program has been in progress. The updated resource estimate will incorporate infill drilling to 50m centres to a depth of 250m which it is anticipated should 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, due to significant high grade resources (approximately 50% of the ounces in the Inferred resource average over 5g/t Au), indicates potential for underground mining. Therefore, the updated resource will also incorporate broad spaced drilling from 250m to 500m depth to establish an Inferred resource suitable for potential development by underground mining methods.
"We are extremely pleased by the results of this initial resource estimate for San Ramon and look forward to both increasing the quality and tonnage with an updated resource estimate targeted for release mid-year based on the current drilling," comments Ian Slater, Chief Executive Officer. "The resource estimate establishes San Ramon as one of the highest-grade deposits amenable to low-cost open-pit mining in Colombia."
The San Ramon structure trends east-west, dips 60°-70° to the north, extends over 1,800m, is up to 50m wide and is mineralised from surface. 23,000m of core have been drilled to date to a vertical depth of 250m to 300m with mineralisation remaining open at depth. Preliminary metallurgy test work returned an average gold recovery of 93.5% through flotation and cyanide leaching.
Anticipated news flow over the coming months will include:
- Results from the current 17,000 metre Phase Four drill programme (Q1 2013);
- Preliminary Economic Assessment (Q2 2013);
- Environmental Impact Assessment (Q2 2013);
- Updated NI 43-101 resource estimate (mid 2013); and
- Feasibility and permitting (Q1 2014).
The Santa Rosa resource estimates were prepared by Michael Lindholm C.P.G., of Mine Development Associates of Reno, Nevada, who is a "Qualified Person" as defined under NI 43-101. The complete NI 43-101 technical report will be filed within 45 days and will be available on Red Eagle Mining''s website and www.sedar.com. 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.Geo., 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 currently developing the 390 km² Santa Rosa gold project located in Colombia. Santa Rosa is an intrusive hosted structurally-controlled quartz stockwork system within the prolific 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.
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.