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Red Eagle hits high grades as mine ramps up

Red Eagle Mining (CN:R) has intersected grades significantly higher than the reserve grade of 5.6g/t gold in underground stope delineation drilling at its San Ramon mine in Antioquia, Colombia.
Red Eagle hits high grades as mine ramps up Red Eagle hits high grades as mine ramps up Red Eagle hits high grades as mine ramps up Red Eagle hits high grades as mine ramps up Red Eagle hits high grades as mine ramps up

Recent San Ramon drill core

Staff reporter

Among the highlights of the latest 91 holes include 4.4m at 15.18g/t gold and 1.3m at 82.66g/t.

The company restarted the mill at its Santa Rosa project in January and expects to make its first commercial pour at the end of this month, ramping up to an estimated production of 45,000-50,000oz for 2018.

The company had declared commercial readiness in early 2017 but challenging ground conditions prompted a backfill programme.

The company had a working capital deficiency of US$13,400 at the end of September.

It raised C$30 million (US$23.6 million) in a rights offering in August, C$8 million in a November placement and a further C$5.6 million in equity financing in December at C35c per unit, comprising a share and a warrant.

Its shares were trading above C80c a year ago but have hovered around the 30c mark for the past six months and closed up 1.7% yesterday to 29.5c.

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