Red Eagle Mining Reports Q2 2017 Financial Results
August 15 2017 - 5:30AM
Red Eagle Mining Corporation (TSX:R) (BVL:R)
(OTCQX:RDEMF) is pleased to announce financial results for the
three and six months ending June 30, 2017 and business highlights
to date including:
- Closed C $30 million rights offering to fund the add-on paste
backfill plant and to provide working capital before gold
production resumes (news releases dated June 26, 2017 and August
11, 2017);
- Commenced detailed underground stope delineation drilling
program (news release dated August 1, 2017);
- Greenfields exploration discovery of multiple parallel
high-grade veins at the Santa Rosa Gold Project within five
kilometres from the completed Santa Rosa mill (news release dated
July 10, 2017);
- Monthly repayment of the credit facility deferred until April
1, 2018 (news release dated June 29, 2017);
- Initial sampling announced from the Machuca Zone at Red Eagle
Mining’s controlled public subsidiary Red Eagle Exploration
Limited’s California Gold Project (news release dated June 28,
2017). Sampling encountered a higher grade mineralized zone
with a total strike length of 45 metres which is open in all
directions. The average composite grades along the two metre
width of the drift were 9.8 grams per tonne gold and 221.1 grams
per tonne silver;
- Acquired the high-grade California Gold Project through Red
Eagle Mining’s controlled public subsidiary Red Eagle Exploration
Limited (news releases dated February 15, 2017 and March 15,
2017);
- Closed bought deal equity financing with BMO Capital Markets
for gross proceeds of C $17 million including the entire
over-allotment option (news release dated February 21, 2017);
and
- Completed 2016 detailed stope delineation drilling from surface
at the San Ramon Gold Mine. Results from the delineation
drilling exceeded expectations with many intercept grades
significantly higher than the reserve grade of 5.2 g/t Au.
(news release dated January 17, 2017).
Operations Update
Mine Development
Underground development advanced well in competent granodiorite
without support. The main and secondary ramps have advanced
four kilometres from the portal providing access to the -100, -125
and -150 metre levels, measured from surface.
Gold grades in the production headings have been
in line with feasibility study estimates, averaging 5.5 grams per
tonne gold during May 2017. However, to improve ground
stability and minimize gold losses, Red Eagle Mining is
implementing paste back fill. Paste back fill utilizing waste
tailings material has been successfully tested providing much
improved ground stability and an add-on plant is being designed
with a projected time line to completion of up to five
months. Until the add-on paste back fill plant is completed,
mining ore in stopes has been temporarily suspended as it was not
being efficiently extracted under the current method resulting in
unnecessary dilution and ore loss. Development ore will
continue to be mined and stockpiled.
While the add-on paste backfill plant is
constructed, production crews have been diverted to underground
mine development. Underground development will ensure greater
operational flexibility once the paste backfill plant is in
operation. Development of about 20 metres per day is planned
for the remainder of 2017. Upon completion an additional
three kilometres of development will have been completed giving
access to 54 ore development headings by December 2017 when ore
production is scheduled to re-commence. Development ore will
continue to be mined and stockpiled. Upon completion, the
additional development and paste back fill system will allow
consistent production resulting in an estimated 50,000 ounces of
gold produced during 2018.
Mill
The mill processing facility commissioning is
complete and exceeds the nameplate design throughput by 20%, with
the capability to process up to 1,200 tonnes per day.
Stockpiled ore from the ongoing mine development program will
be batch processed or blended with ore stoping production upon
completion of the paste backfill system.
Safety Operations have continued to adopt and
promote best practices in safety with many awareness programs in
place and monitoring occurring on a continuous basis. The
results have been demonstrated in the safety statistics to
date.
Social and Environmental
Red Eagle Mining continues to maintain positive
relationships with and be involved with the local communities.
Continuous information flow has been maintained with all
stakeholders regarding the advances of the operations. Red
Eagle Mining continues to strictly adhere to the terms of its
Environmental License and the associated Environmental Management
Plan. The Environmental Agency, along with local committees,
has maintained a strict monitoring program as the project has
progressed with visits at least monthly. Red Eagle Mining has
received positive inspection reports from all inspections.
Delineation Drilling
Red Eagle Mining commenced the underground
program in June with two rigs which will ramp up to four rigs
through the autumn. A total of 15 underground stope
delineation holes have been announced to date (SRDU-0001 to
SRDU-0015) with highlights including intersections:
- SRDU-0003 – 0.60m at 44.14 g/t Au from 45.10m down hole
- SRDU-0008 – 2.25m at 10.04 g/t Au from 82.20m down hole
- SRDU-0008 – 4.75m at 5.38 g/t Au from 97.80m down hole (incl.
0.60m at 27.30 g/t Au)
- SRDU-0010 – 3.80m at 5.35 g/t Au from 58.35m down hole
- SRDU-0011 – 1.50m at 25.92 g/t Au from 85.90m down hole
Selected Financial Data
The following selected financial data is derived
from our unaudited interim condensed consolidated financial
statements for the three and six months ended June 30, 2017, as
prepared in accordance with International Financial Reporting
Standards (all amounts in thousands of US dollars, except per share
amounts).
|
For the three months ended |
For the six months ended |
|
June 30, 2017 |
June 30, 2016 |
June 30, 2017 |
June 30, 2016 |
Net
loss |
$ |
4,339 |
$ |
491 |
$ |
6,930 |
$ |
636 |
|
Comprehensive loss (income) |
$ |
3,307 |
$ |
767 |
$ |
5,488 |
$ |
(526 |
) |
Basic & diluted loss per share |
$ |
0.02 |
|
|
|
As at |
|
|
June 30, 2017 |
December 31 2016 |
Cash and cash
equivalents |
|
|
$ |
532 |
$ |
4,202 |
|
Total
assets |
|
|
$ |
140,101 |
$ |
122,020 |
|
Total
liabilities |
|
|
$ |
92,674 |
$ |
84,591 |
|
Shareholders’ equity |
|
|
$ |
47,427 |
$ |
37,429 |
|
|
|
|
|
|
|
|
|
For the three and six months ended June 30, 2017, Red Eagle
Mining reported a net loss of $4.3 million (2016: $0.5 million).
The net loss increased compared to the 2016 period primarily due to
increased expenses associated with the ramp up of the San Ramon
Gold Mine and Mill during the 2017 period, which also resulted in
the increased values of Total Assets and Shareholders’
Equity. The increase in Total Liabilities primarily relates
to amounts outstanding on the construction credit facility.
This press release should be read in conjunction
with the unaudited interim condensed consolidated financial
statements and Management’s Discussion and Analysis for the three
and six months ended June 30, 2017. These documents can be
found on Red Eagle Mining’s website or profile at
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.Eng., who is a Qualified
Person as defined under NI 43-101.
About Red Eagle Mining
Red Eagle Mining is a gold producer focused on
building shareholder value through acquiring, developing and
operating gold projects in Colombia, a jurisdiction with prolific
historic production but until recently limited modern
exploration. Red Eagle Mining owns 100% of the Santa Rosa
Gold Project and controls Red Eagle Exploration Limited which owns
100% of the Vetas Gold, California Gold and Santa Ana Silver
Projects and is actively consolidating additional high grade
precious metal deposits in Colombia.
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 Red Eagle Mining
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.
For further information on Red Eagle Mining Corporation please contact:
Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
+1 604 360 5722 mobile
balit@redeaglemining.com
www.redeaglemining.com
Ryder System (NYSE:R)
Historical Stock Chart
From Mar 2024 to Apr 2024
Ryder System (NYSE:R)
Historical Stock Chart
From Apr 2023 to Apr 2024