Red Eagle Mining Continues to Advance the San Ramon Gold Deposit During 2013
April 23 2014 - 5:00AM
Marketwired
Red Eagle Mining Continues to Advance the San Ramon Gold Deposit
During 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 23, 2014) - Red
Eagle Mining Corporation (TSX-VENTURE:RD)(OTCQX:RDEMF) is pleased
to announce financial results for the year ending December 31, 2013
and business highlights to date, including advancements at Red
Eagle Mining's San Ramon Gold Deposit in Antioquia, Colombia.
2014 work programme:
- Completion of the permitting process with the Secretary of
Mines of Antioquia and Corantioquia;
- Completion of a Definitive Feasibility Study; and
- Exploration of the remainder of the 320 km² Santa Rosa Gold
Project.
2013 highlights and significant subsequent events:
- Completed $5,000,000 equity financing including a $4,000,000
bought deal financing underwritten by a syndicate of underwriters
led by Haywood Securities Inc. and a $1,000,000 private placement
with Liberty Metals & Mining Holdings LLC who exercised their
participation rights to maintain a pro rata 19.9% interest in Red
Eagle Mining (news release dated April 9, 2014);
- Completion and filing of the Environment Impact Assessment
(prepared by Tetra Tech, Inc.) with Corantioquia (Environmental
Agency of Antioquia). This is the final stage in the permitting
process (news release dated February 24, 2014);
- Completed $4,166,666 financing with Liberty Metals & Mining
Holdings LLC for a 1% royalty (news release dated December 20,
2013);
- Completion and filing of the NI 43-101 Technical Report
pertaining to the positive Preliminary Economic Assessment ("PEA")
for the San Ramon Gold Deposit (news release dated September 19,
2013, all amounts in US$). Highlights include year one production
of 87,000 ounces of gold at a fully diluted grade of 8.1 grams gold
per tonne and post-tax cash flow of $61 million.
Table 1 - Summary of San Ramon Economic Results
$1,300/Ounce Gold |
Pre-Tax |
|
Post-Tax |
|
Net Cash Flow |
$ |
211 million |
|
$ |
159 million |
|
Net Present Value (5%) |
$ |
152 million |
|
$ |
113 million |
|
Internal Rate of Return |
|
47 |
% |
|
37 |
% |
Payback |
|
1.4 years |
|
|
1.7 years |
|
Table 2 - Summary of San Ramon Key PEA Data
Average Annual Production |
51,000 oz/year |
|
Processing Rate |
1,000 tonnes/day |
|
Life of Mine ("LOM") |
10 years |
|
Initial Capex (incl. $11M contingency) |
$84 million |
|
Cash Costs |
$540/ounce or $76/tonne |
|
Years 1-5 Fully Diluted Processed Grade |
5.38 grams gold per tonne |
|
LOM Fully Diluted Processed Grade |
4.76 grams gold per tonne |
|
CIL Gold Recovery |
93 |
% |
- Submission of the mining technical work plan ("PTO") for the
San Ramon Gold Deposit to the Secretary of Mines of Antioquia
during November, 2013;
- Reported mapping, soil sampling and rock channel sampling at
the Pavo Real Gold Project have identified a new area of
mineralisation. Highlights include 9 grams gold per tonne and 72
grams silver per tonne over 6.1 metres and 33.7 grams gold per
tonne, greater than 100 grams silver per tonne, 0.23% copper and
0.23% zinc over 0.5 metres. This most recent rock channel sampling
programme was carried out in an area of high-level vein and
hydrothermal breccia mineralisation associated with dykes of
rhyodacite porphyry, where MMI soil sampling returned strong
coincident Au, Ag and Cu anomalies (news releases dated October 8,
2013 and January 14, 2014);
- Acceptance as a Tier 1 issuer on the TSX Venture Exchange (news
release dated August 6, 2013);
- The successful conversion of an 8,590 hectare application
adjacent to the north of the San Ramon Gold Deposit from an
application to a concession contract;
- The successful application for an additional 1,809 hectares
adjacent to the north of the existing holdings at the Santa Rosa
Gold Project along the mineralised trend and an additional 8,800
hectares within the Pavo Real Gold Project; and
- Completion of 45,000 metres of drilling on the San Ramon Gold
Deposit (news release dated May 28, 2013).
Selected financial data:
The following selected financial data is derived from our
consolidated financial statements for the year ended December 31,
2013, as prepared in accordance with International Financial
Reporting Standards (all amounts in CDN$).
For the year ended |
December 31, 2013 |
December 31, 2012 |
Net loss for the year |
$ |
9,783,583 |
$ |
12,198,024 |
Comprehensive loss for the year |
|
9,870,274 |
|
12,227,670 |
Basic and diluted loss per share |
|
0.17 |
|
0.29 |
|
|
|
As at |
|
|
Cash and cash equivalents |
$ |
4,118,484 |
$ |
15,893,971 |
Total assets |
|
5,578,368 |
|
20,385,464 |
Total liabilities |
|
2,137,930 |
|
7,035,647 |
Shareholders' equity |
|
3,248,339 |
|
13,110,970 |
Cumulative exploration expense |
|
26,771,965 |
|
17,526,147 |
For the year ended December 31, 2013 Red Eagle Mining reported a
net loss of $9.8 million (2012: $12.2 million) with most
significant contribution to the loss being the cost of ongoing
exploration of $9.2 million (2012: $9.8 million).
This press release should be read in conjunction with the
condensed consolidated financial statements and Management's
Discussion and Analysis for the year ended December 31, 2013. These
documents can be found on Red Eagle Mining's website or profile at
www.sedar.com.
The PEA was prepared by Mine Development Associates in
accordance with the definitions in Canadian National Instrument
43-101 ("NI 43-101"). The PEA is considered preliminary in nature.
It includes Inferred mineral resources that are considered too
speculative to have the economic considerations applied that would
enable classification as mineral reserves. There is no certainty
that the conclusions within the PEA will be realised. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability.
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 well-financed gold exploration and
development company with an experienced mine-development team.
Management is focused on building shareholder value through
discovering and developing gold projects with low costs and low
technical risks in Colombia, a jurisdiction with prolific historic
production but until recently limited modern exploration. Red Eagle
Mining is developing the 320 km² historic Santa Rosa Gold Project
located in the Antioquia Batholith. Development will initially
commence with the San Ramon Gold Deposit where a positive
Preliminary Economic Assessment supports project advancement.
Feasibility and permitting are currently underway.
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. 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.
Red Eagle Mining CorporationIan SlaterChief Executive Officer+1
604 638 2545info@redeaglemining.comwww.redeaglemining.comInvestor
RelationsJames Beesley+1 604 682 4600 or +1 855 682 4600 toll
free+1 778 389 7715 mobilejames@sequoiapartners.ca
Red Eagle Mining (CE) (USOTC:RDEMF)
Historical Stock Chart
From Jul 2024 to Aug 2024
Red Eagle Mining (CE) (USOTC:RDEMF)
Historical Stock Chart
From Aug 2023 to Aug 2024