Resource World Magazine

D E C E M B E R / J A N U A R Y 2 0 1 7 www.resourceworld.com 43 Red Eagle Mining pours first gold at San Ramon gold Mine by Kathrine Moore RED EAGLE MINING CORP. [R-TSX; RDEMF-OTCQX; R-BVL] has poured first gold at the San Ramon gold mine, part of the 100%-owned Santa Rosa gold project in Antioquia, Colombia. The company has moved the project rapidly towards com- mercial production since receiving the Environmental License in March of 2015, the final permit required to begin con- struction of the San Ramon Gold Mine. Construction began in August 2015 of the San Ramon underground gold mine, pro- cessing facility and infrastructure. The 10,000-hectare Santa Rosa Project is an intrusive-hosted, structurally-con- trolled, quartz stockwork system, located within the prolific Antioquia Batholith near the town of Santa Rosa de Osos and lies 70 km north of Medellin. Gold min- ing within the Santa Rosa Gold Project area, the company states, "pre-dates the 17th century when an estimated 30 million tonnes were mined." Red Eagle Mining says Colombia has experienced limited modern exploration and that the potential for world class dis- coveries remains intact. There is strong support of foreign individuals and corpo- rations investing in Colombia as they have same rights as Colombian individuals and corporations under mining law. "We are extremely proud to commence production, which is a historic milestone for both Red Eagle Mining and Colombia," commented Bob Bell, Red Eagle Mining, Chief Operating Officer. "As Red Eagle Mining completes this important step, we would like to thank our shareholders, stakeholders in the community, employ- ees and contractors involved in delivering the Santa Rosa gold project from breaking ground to first gold pour in 14 months." The company reports that the Santa Rosa gold project was built on budget "while maintaining a healthy cash balance of C$16 million." Commercial production is expected to begin in the first quarter of 2017 as production ramps up. An estimated 70,000 ounces of gold will be produced in 2017 from 1,000 tpd pro- duction at a cash cost of US $596/oz and an all-in sustaining cost of US $647/oz. Near mine, (~2 km) drill ready exploration tar- gets provide opportunity to ramp up 2,000 tpd. Metallurgy is straightforward, says the company, with 96% recovery (Au/Ag doré). Tailings will be dry stacked with 60% used as backfill. The mining method starts off as cut and fill, but will move towards shrinkage stoping with delayed fill, as the company gets more comfortable with mining the deposit. The bankable feasibility study post-tax project economics estimate an IRR of 53% and payback within 1.3 years (at $1,300/oz gold) and contemplates a mine life of eight years. On September 14, 2016, Red Eagle Mining reported results from ongoing ore production stope delineation drilling at the San Ramon gold mine. The results from the initial 44 holes (SRD-0001 to SRD-0044) were previously announced. An additional six holes have been completed (SRD-0045 to SRD-0050) with highlights including intersections: • SRD-0046 – 12.56 m at 7.66 g/t Au from 67.64 m down hole (incl. 1.05 m at 48.70 g/t Au) • SRD-0046 – 9.68 m at 7.89 g/t Au from 94.70 m down hole (incl. 0.70 m at 48.88 g/t Au) • SRD-0046 – 2.07 m at 42.62 g/t Au from 130.70 m down hole • SRD-0047 – 5.21 m at 7.47 g/t Au from 93.15 m down hole (incl. 1.41 m at 19.18 g/t Au) • SRD-0049 – 7.16 m at 29.03 g/t Au from 131.82 m down hole (incl. 2.31 m at 73.96 g/t Au) The company sates that "results from the delineation drilling continue to exceed expectations with intercepts significantly longer that the average mining width of 3 m and grades significantly higher than the reserve grade of 5.2 g/t gold." The project has excellent infrastructure including an upgraded seven-km road from the highway to the site; an abundant water supply, the town of Santa Rosa de Osos (30 minutes up the road) provides most unspecialized labor, and a 44 KV overhead power line connecting a supply to a substation 12 km from the mine site. Red Eagle Mining also controls CB Gold, holding 92% of the issued and outstanding CB Gold shares. CB Gold owns 100% of the Vetas Gold and Santa Ana Silver Projects. On November 3, 2016, Red Eagle Mining announced that it had received final approval to graduate to the Toronto Stock Exchange (TSX) and is now trading under the new symbol R. n miNiN g

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