Red Eagle Mining Successfully Completes Phase Four Drilling at Santa Rosa
May 28, 2013 — VANCOUVER, BRITISH COLUMBIA (Source: Marketwired) — Red Eagle Mining Corporation (TSX VENTURE:RD) (OTCQX:RDEMF)is pleased to announce that Phase Four drilling is complete and all assay results have been received from the 22,000 metre programme at the San Ramon Deposit, Santa Rosa Gold Project, Antioquia, Colombia. Highlights from the entire 94 hole programme (SR-140 to SR-233) include intercepts:
- SR-168 – 36.10m at 2.64 g/t Au from 392.50m down hole (incl. 1.50m at 34.34 g/t Au)
- SR-172 – 0.60m at 157.70 g/t Au from 398.40m down hole
- SR-175 – 4.10m at 12.75 g/t Au from 117.70m down hole (incl. 1.70m at 25.47 g/t Au)
- SR-177 – 37.50m at 1.27 g/t Au from 69.50m down hole (incl. 0.50m at 43.90 g/t Au)
- SR-181 – 7.30m at 6.08 g/t Au from 148.30m down hole (incl. 0.80m at 35.90 g/t Au)
- SR-184 – 28.80m at 1.54 g/t Au from 178.00m down hole
- SR-186 – 63.40m at 1.36 g/t Au from 107.80m down hole (incl. 1.00m at 37.00 g/t Au)
- SR-189 – 8.70m at 7.11 g/t Au from 154.80m down hole (incl. 1.00m at 36.10 g/t Au)
- SR-202 – 2.30m at 35.72 g/t Au from 129.40m down hole (incl. 0.70m at 77.60 g/t Au)
- SR-211 – 23.30m at 3.50 g/t Au from 91.10m down hole (incl. 4.45m at 15.25 g/t Au)
- SR-215 – 24.00m at 9.03 g/t Au from 112.50m down hole (incl. 3.10m at 39.30 g/t Au)
- SR-219 – 6.00m at 9.83 g/t Au from 156.00m down hole (incl. 1.40m at 36.00 g/t Au)
“Our Phase Four drilling programme has successfully delineated the resource to 250 metres depth and extended the resource to more than 500m at depth”, comments Jeff Toohey, Vice President Exploration. “Over 90% of drill holes encountered economic mineralisation including high grades over significant intervals.”
An updated Resource Estimate planned for release in July, 2013 will incorporate all of the Phase Four results including infill drilling to 50m centres to a depth of 250m which is expected to upgrade a majority of the existing Inferred Resources below 100m to the Measured and Indicated classifications. In addition, the San Ramon Gold Deposit remains open at depth and has the potential to be mined from underground (at a 2 g/t Au cut-off the current Inferred Resource averages 5.44 g/t Au). Therefore, the July 2013 Resource Estimate will also incorporate the broad spaced drilling completed to date, from approximately 250m to 500m depth, to establish an Inferred Resource suitable for potential development by underground mining methods. The July Resource Estimate will be incorporated into a Preliminary Economic Assessment and Environmental Impact Assessment planned for release early in the autumn of 2013.
The San Ramon deposit trends east-west, dips 70° to the north, extends over 1,900m, is up to 50m wide and is mineralised from surface. A total of 45,000m of core in 233 holes have been drilled to a vertical depth of more than 500m with mineralisation remaining open at depth. The initial, January 2013, Resource Estimate based on 23,000m of drilling to a depth of 300m included an Indicated Resource of 7.34 million tonnes at 1.37 g/t Au containing 322,000 ounces gold and an Inferred Resource of 9.45 million tonnes at 1.50 g/t Au containing 456,000 ounces gold. All of these Resources occur at the San Ramon Deposit, one of numerous gold prospects undergoing exploration at Santa Rosa. Metallurgical test work to date has returned an average CIL gold recovery of 94%.
For complete drill results, please see Table 1 – Drill Hole Intercepts, Table 2 – Drill Hole Specifications and Figure 1 – Drill Hole Plan. Drill holes up to SR-225 have been previously released. True widths are estimated to be 70-90% of the intercepts and vertical depths are estimated to be 70-90% of the drilled depths reported below. Drill assays were composited by length-weighted averaging into intersections using a 0.30 g/t Au cut-off grade. Due to the mining method and mining selectivity contemplated for the deposit, internal dilution was included in some intersections where considered appropriate for mining continuity. For photographs of the drill core see Red Eagle’s photostream on flickr.
Quality Assurance and Quality Control
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All drill samples were collected with a diamond core drill rig using approximately one metre sample intervals of whole core 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 50g charge at 250 mesh pulp with an AAS finish, or if over 10 g/t Au, were re-assayed and completed with a gravimetric finish. The coarse crush split reject (<16mm) was retained for metallurgical test work. 10% of a range of selected assays over 0.2 g/t Au, with an average of approximately 1.0 g/t Au were taken from the middling split reject and submitted for metallic screening analysis at 150 mesh pulp followed by fire assay and both AAS and gravimetric finish. Any discrepancies were reanalysed from the remaining middling reject by gravity concentration and acid digest. QA/QC 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 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 Corporation is a well-financed gold exploration and development company with an experienced mine development team. Red Eagle Mining is developing the 390 km² Santa Rosa Gold Project located in Antioquia, Colombia. Santa Rosa is an intrusive hosted structurally-controlled quartz stockwork system within the prolific Antioquia Batholith. Gold mining within the Santa Rosa Gold Project pre-dates the 16thcentury 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 holds an extensive package of exploration ground throughout Colombia, including the Pavo Real Gold 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.
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.
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