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Red Eagle hits more high grades below mine

Gold producer Red Eagle Mining (CN:R) is continuing to find higher-grade potential below its San Ramon gold mine as it ramps up production again at its Santa Rosa project in Colombia.
Red Eagle hits more high grades below mine Red Eagle hits more high grades below mine Red Eagle hits more high grades below mine Red Eagle hits more high grades below mine Red Eagle hits more high grades below mine

Extends vertical extent of known mineralisation at San Ramon

Staff reporter

The company said the results from a further 35 underground delineation holes had extended the vertical extent of known mineralisation and continued to return grades higher than the reserve grade of 5.2g/t gold.

Highlights included 4.75m at 20.3g/t gold from 108.5m, including 1.3m at 67.84g/t gold.

Red Eagle said the mineralisation was open in an area with no previous drilling, and outside the current resource and reserve, of 405,000 ounces at 5.2g/t within 250m of surface.

The company has said the mill was continuing to ramp up "according to plan" and had processed 17,008 tonnes at 2.12g/t for 1,100oz in January, and 21,138t at 3.19g/t for 1,974oz in February.

The mill restarted in January, having been stopped since June 2017 to fix production-related issues.

Red Eagle is aiming to produce 45,000-50,000oz in 2018, increasing to 65,000 from 2019.

Shares in the company have ranged between C22.5c-79c over the past 12 months and closed up half a cent yesterday to 27c, capitalising it at $105.6 million.