Captain Black Bob Blanco
6 years ago
BCSC-OSC Cease Trade Order
Announcement | 11/20/2018
Citation: 2018 BCSECCOM 363
Cease Trade Order
Red Eagle Mining Corporation
(the Issuer)
Under the securities legislation of British Columbia and Ontario (Legislation)
Background
¶ 1 This is the order of the regulator of the British Columbia Securities Commission (the Principal Regulator) and evidences the decision of the regulator or securities regulatory authority in Ontario (each a Decision Maker).
¶ 2 The Issuer has not filed the following periodic disclosure required by the Legislation:
1. interim financial report for the period ended September 30, 2018,
2. interim management's discussion and analysis for the period ended September 30, 2018,
3. certification of interim filings for the period ended September 30, 2018.
¶ 3 As a result of this order, if the Issuer is a reporting issuer in a jurisdiction in which Multilateral Instrument 11-103 Failure-to-File Cease Trade Orders in Multiple Jurisdictions applies, a person or company must not trade in or purchase a security of the Issuer in that jurisdiction, except in accordance with the conditions that are contained in this order, if any, for so long as this order remains in effect.
¶ 4 Further, this order takes automatic effect in each jurisdiction of Canada that has a statutory reciprocal order provision, subject to the terms of the local securities legislation.
Interpretation
¶ 5 Terms defined in the Legislation, National Instrument 14-101 Definitions and National Policy 11-207 Failure-to-File Cease Trade Orders and Revocations in Multiple Jurisdictions have the same meaning if used in this order, unless otherwise defined.
Order
¶ 6 Each of the Decision Makers is satisfied that the decision concerning the cease trade meets the test set out in the Legislation to make this decision.
¶ 7 It is ordered under the Legislation that trading cease in respect of each security of the Issuer.
¶ 8 Despite this order, a beneficial securityholder of the Issuer who is not, and was not at the date of this order, an insider or control person of the Issuer, may sell securities of the Issuer acquired before the date of this order if both of the following apply:
1. the sale is made through a "foreign organized regulated market", as defined in section 1.1 of the Universal Market Integrity Rules of the Investment Industry Regulatory Organization of Canada; and
2. the sale is made through an investment dealer registered in a jurisdiction of Canada in accordance with applicable securities legislation.
¶ 9 November 20, 2018
Jody-Ann Edman, CPA, CA
Assistant Manager, Financial Reporting
Corporate Finance
Original
4Godnwv
6 years ago
RED EAGLE MINING ANNOUNCES RESTRUCTURING
August 24, 2018 – Red Eagle Mining Corporation (TSX: R, BVL: R, OTCQX: RDEMF) announces a comprehensive restructuring. As of June 30, 2018, Red Eagle Mining had a negative working capital of approximately US $100 million, had been accruing interest on its US $60 million credit facility with Orion Mine Finance (“Orion”) and Liberty Metals & Mining Holdings, LLC (“LMM”) at the default rate of LIBOR + 14% and been operating under a forbearance agreement since April 2018. The situation was unsustainable, so a comprehensive restructuring is being implemented including a private placement, retirement of the credit facility, writing off all accrued interest, writing off supplier account payables, appointing a new independent Chairman and a share consolidation. Write offs of the credit facility, accrued interest and supplier account payables total US $44 million and capitalization of the credit facility and supplier account payables total US $18 million.
Upon closing there will be approximately 81 million common shares outstanding, no debt or accrued interest, positive working capital and near term cash flow positive operations. Going forward, Red Eagle Mining will be on sound financial footing with a solid balance sheet, all stakeholders aligned and sufficient working capital to support the mining operations to succeed.
Private Placement
Red Eagle Mining announces a private placement (“Private Placement”) for gross proceeds of approximately C $50 million (US $38 million), consisting of approximately 250 million common shares (“Share”) at a price of C $0.20 per Share. Annibale SAC (“Annibale”) currently owns approximately 9.5% of Red Eagle Mining and has agreed to backstop the Private Placement (“Backstop”). Shareholders of Red Eagle Mining that meet available exemptions will be able to participate in the Private Placement. Proceeds will be used for repayment of long term debt and working capital at the Santa Rosa Gold Project. The Shares are subject to a four month hold period from the date of issuance.
Credit Agreement
Red Eagle Mining has agreed to retire its US $60 million credit facility with Orion and LMM. Red Eagle Mining will settle the credit facility, including all accrued interest, for US $28 million cash and approximately US $15 million in equity (99 million Shares) on the same terms as the Private Placement (“Debt Retirement Transaction”).
Mining Contractor
Stracon, mining contractor for the San Ramon Gold Mine, has agreed to convert approximately US $3 million in accounts receivable into equity (20 million Shares) on the same terms as the Private Placement.
Board of Directors
Fernando Palazuelo, Founder and Chief Executive Officer of Annibale, will replace Jeffrey Mason on Red Eagle Mining’s Board of Directors upon closing of the Private Placement. Mr. Palazuelo will also assume the role of independent Chairman.
The Board of Directors thanks Mr. Mason for his service over the last eight years, since inception, and wishes him all the best in his future endeavours.
Share Consolidation
After closing of the above-mentioned transactions, Red Eagle Mining’s Shares will be consolidated (the “Consolidation”) on the basis of one post-consolidation Share for every ten pre-consolidation Shares. The approximately 812 million Shares outstanding upon closing will be reduced to approximately 81 million Shares. No fractional Shares will be issued. Any fractions of a share will be rounded down to the nearest number of Shares that is a multiple of ten. The exercise or conversion price and the number of Shares issuable under any of Red Eagle Mining’s outstanding stock options, restricted share units and warrants will be proportionately adjusted upon Consolidation. A letter of transmittal will be sent to registered shareholders providing instructions to surrender the certificates evidencing their Shares for replacement certificates. Until surrendered, each certificate representing Shares prior to the Consolidation will be deemed for all purposes to represent the number of Shares to which the holder thereof is entitled as a result of the Consolidation. The Shares and warrants will continue to be traded on the TSX under the symbols “R” and “R.WT” on a post-consolidation basis.
Financial Hardship Exemption
The Debt Retirement Transaction requires disinterested shareholder approval pursuant to the requirements of the Toronto Stock Exchange (“TSX”), unless an exemption is obtained, as the Debt Retirement Transaction will involve the issuance of more than 10 percent of the outstanding shares of the Company to insiders of Red Eagle Mining, namely Orion and LMM, each of whom currently hold over 10% of the outstanding shares of Red Eagle Mining. Further, in the event that Annibale acquires in excess of 20% of the Company’s issued and outstanding shares pursuant to the Backstop, TSX policies would deem that to be a change of control requiring shareholder approval, absent an exemption. The Debt Retirement Transaction is also a related party transaction within the meaning of Multilateral Instrument 61-101 – Protection of minority Security Holders in Special Transactions (MI 61-101), such that minority shareholder approval would also be required pursuant to MI 61-101, unless an exemption is available.
Red Eagle Mining is applying to the TSX for an exemption from the requirement to obtain shareholder approval for the Debt Retirement Transaction and potential change of control to Annibale, based on the financial hardship exemption in Section 604(e) of the TSX Company Manual, and Red Eagle Mining plans to rely on a similar exemption from the requirements of MI 61-101. Red Eagle Mining is applying for the exemption from the shareholder approval requirement on the basis of financial hardship given that the immediacy of Red Eagle Mining’s need to address its financial difficulties through the Debt Retirement Transaction does not afford it sufficient time to hold a meeting of shareholders and on the basis that the Debt Retirement Transaction is designed to address Red Eagle Mining’s financial difficulties by retiring all of the outstanding indebtedness under its existing credit facility. Management and the Board of Directors believe that the terms of the Debt Retirement Transaction are reasonable in the circumstances.
As a consequence of the Red Eagle Mining’s reliance on the financial hardship exemption under Section 604(e) of the TSX Company Manual, Red Eagle Mining expects that the TSX will commence a remedial delisting review, which is normal practice when a listed issuer seeks to rely on this exemption. Although Red Eagle Mining believes that it will be in compliance with all of the TSX listing requirements following completion of the Debt Retirement Transaction, no assurance can be provided as to the outcome of such review and, therefore, Red Eagle Mining’s continued qualification for listing on the TSX.
Closing is expected to occur during October 2018, subject to TSX approval.
About Red Eagle Mining
Red Eagle Mining is a gold producer focused on building shareholder value through acquiring, developing and operating gold and silver projects in Colombia, a jurisdiction with prolific historic production but until recently limited modern exploration. Red Eagle Mining owns 100% of the Santa Rosa Gold, Vetas Gold, California Gold and Santa Ana Silver Projects. The Santa Rosa Gold Project commenced production in January 2018.
Additional Information
Patrick Balit
Vice President Corporate Development
+1 778 372 2558
balit@redeaglemining.com
www.redeaglemining.com
4Godnwv
7 years ago
Letter to shareholders from CEO:
Dear Fellow Shareholder,
Red Eagle Mining is well on the way to overcoming the challenges faced during the first half of 2017. The primary issue was that the mine was significantly behind in development due to initial difficult ground conditions pushing the primary ramp through the saprolite during 2016. Since raising additional capital and recruiting new experienced operating personnel in August 2017 we have made immense progress. We successfully completed 6,429 metres of underground development, 21,688 metres of underground infill drilling on ten metre centres and commenced stope mining in October 2017 with the plant commencing production on January 2, 2018 and operating continually to date.
This development has given access to up to 44 active ore production faces at any time, depending on backfill and breasting cycles, allowing much more operational flexibility. Six new attack ramps are expected to be completed during Q2 which will significantly increase the number of production faces available enabling another large jump in production. Stope mining operations continued to ramp up and have increased each month since October 2017 with an average of 680 tonnes per day mined in April 2018. These additional production faces will allow mining rates to continue to increase to an estimated 900 tonnes per day in June and 1,000 tonnes per day in July, which is full designed production from the San Ramon mine.
The life of mine, mill processed grade was estimated in the feasibility study at 4.5 grams of gold per tonne. During March the ore processed had an average grade of 3.9 grams of gold per tonne. With increased experience mining the San Ramon deposit and operational improvements being implemented we expect the grade to improve to 4.5 grams of gold per tonne on average, though it will be variable day to day and month to month.
A majority of our production is currently from the wider veins near the footwall of the shear zone. Occasionally, the higher grade veins near the hanging wall are too thin to economically mine with our current equipment. Hence, two smaller loaders will be put into operation during Q3 which will permit mining of these high grade stopes with much less dilution increasing both tonnage and grade with no additional development
As tonnage and grade continue to improve, gold production is forecast to grow steadily to 4,000 to 5,000 ounces per month over the remainder of 2018.
During 2017 we studied and tested backfill alternatives. As a result of the updated ground support, drilling and blasting procedures implemented during the second half of 2017, quicker backfill cycle times and mining narrower stopes, full paste fill is not required. Rather than 100% paste fill, a layer of cemented paste fill is being injected on top of the backfill, where appropriate, to tighten fill and minimize ore loss. Instead of a fixed distribution system, the paste is piped to an underground bay where it is delivered to the stopes by truck. This alternative will result in lower capital and operating costs and more operational flexibility with a similar production profile.
Underground exploration drilling at the mine during Q1 2018 intersected high grade mineralization including 4.75 metres at 20.3 grams per tonne gold. The drilling was below the mine workings along 300 metres of strike extending the vertical extent of known gold mineralization. Mineralization is open to depth in an area with no previous drilling and outside of the mineral resource and mineral reserve.
We are very encouraged with the grassroots exploration discoveries in 2017 to the west of the Santa Rosa Mill. This area is covered in historical open pits and thousands of adits and is critical to Red Eagle Mining’s plan to develop additional mines to feed the Santa Rosa Mill Complex and fulfill our vision of increasing capacity to 2,000 tonnes per day.
Red Eagle Mining also now owns 100% of Red Eagle Exploration (formerly CB Gold) which, in addition to controlling the Vetas district in Santander, Colombia, in 2017 acquired four concessions in the neighboring California district. These properties have substantial historical drilling with very high-grade results and are adjacent to the world class La Mascota and La Bodega deposits previously owned by Ventana Gold. These two districts combined are key to the next stage of growth. The plan is to develop them concurrently with a common processing facility.
Red Eagle Mining currently has only an US $85 million market capitalization, yet it owns (i) a new US $75 million processing facility, (ii) the developed San Ramon gold mine with an eight-year mine life (open to expansion to the east and at depth) which will be in full production in July 2018, (iv) satellite discoveries on the 100% owned 100 square kilometer Santa Rosa Gold Project and (iv) 100% of the Vetas and California Gold Projects which until recently were separately listed as Red Eagle Exploration with a market capitalization of US $35 million. As production continues to increase over the coming months and the market capitalization reverts to more normal multiples, we expect this to be reflected in significant upside potential to the share price.
Over the last year the focus has been on operations and delivering on production. Over the coming months I look forward to seeing many of you at conferences and on road shows as we improve the market awareness of the huge strides we have taken at Santa Rosa. On behalf of the entire board and executive team, we are thankful for the continued support of all stakeholders in Red Eagle Mining, but especially our fellow shareholders as we have transitioned into production.
Ian Slater
Chief Executive Officer
4Godnwv
7 years ago
RED EAGLE MINING AND RED EAGLE EXPLORATION RECEIVE SHAREHOLDER APPROVAL FOR AMALGAMATION
April 10, 2018 – Red Eagle Mining Corporation (TSX: R, BVL: R, OTCQX: RDEMF) and Red Eagle Exploration Limited (TSXV:XR) announce that Red Eagle Exploration has received the required approval from its shareholders for the Amalgamation Agreement dated March 2, 2018 pursuant to which Red Eagle Mining will acquire all of the issued and outstanding common shares of Red Eagle Exploration Limited (“XR”) not already owned by it by way of a three-cornered amalgamation (“Amalgamation”). Under the terms of the Amalgamation, XR shareholders will receive one (1) common share of Red Eagle Mining for every two (2) XR common shares (“XR Shares”) held.
The Amalgamation Agreement was approved by 100% of the votes cast by XR shareholders at the meeting, including 100% of disinterested shareholders who voted as required by Multilateral Instrument 61-101. Closing of the Amalgamation is subject to receipt of the approval of the TSX Venture Exchange on the part of XR. The companies expect that closing will occur shortly, at which time XR will be delisted from the TSX Venture Exchange.
Beneficial Shareholders (shareholders who hold XR Shares through a bank, broker, investment dealer or other intermediary) do not need to undertake any further actions. Registered Shareholders (shareholders who hold XR Shares directly and are represented by a certificate) should tender their shares by delivering to Computershare (a) certificates representing the Shares to be tendered and (b) a properly completed and executed letter of transmittal (the “Letter of Transmittal”). The Letter of Transmittal was included in the management information circular of XR dated March 2, 2018 prepared in connection with the special meeting and filed on SEDAR by XR and mailed to XR shareholders.
The combination of Red Eagle Mining and XR will create a strong exploration, development and operating company with four 100% owned high grade gold and silver projects in Colombia. The combined company will continue operating the producing Santa Rosa Gold Project and will be able to develop the Vetas Gold, California Gold and Santa Ana Silver Properties currently held by XR. The Amalgamation will complete the acquisition of XR (formerly known as CB Gold Inc.) by Red Eagle Mining and will simplify the holding structure and reduce costs of the two companies.
About Red Eagle Mining
Red Eagle Mining is a gold producer focused on building shareholder value through acquiring, developing and operating gold and silver projects in Colombia, a jurisdiction with prolific historic production but until recently limited modern exploration. Red Eagle Mining owns 100% of the Santa Rosa Gold, Vetas Gold, California Gold and Santa Ana Silver Projects. The Santa Rosa Gold Project commenced production in January 2018.
Additional Information
Patrick Balit
Vice President Corporate Development
+1 778 372 2558
balit@redeaglemining.com
www.redeaglemining.com
4Godnwv
7 years ago
Full Year 2017 Financial Results Reported
March 28, 2018 – Red Eagle Mining Corporation (TSX: R, BVL: R, OTCQX: RDEMF) is pleased to announce financial and operating results for the year ending December 31, 2017. The focus for the second half of 2017 was to complete enough underground development to support sustainable production and give access to underground drill pads. This was successfully accomplished with over five kilometres of underground development and 16,000 metres of underground infill drilling being completed during 2017. This development and infill drilling facilitated stope mining to recommence in Q4 2017 and the mill to restart on January 2, 2018.
During February, the mine produced over 600 tonnes per day and the mill processed over 750 tonnes per day utilizing stockpiles (see table below). With most of the new equipment having arrived at site through February and March and the final scoops due for delivery in April the mine is planned to ramp up to 750 tonnes per day in Q2 2018. The additional underground development and infill drilling will allow consistent production resulting in an estimated 45,000 ounces of gold produced during 2018.
Exploration drilling at the San Ramon mine from underground commenced, intersecting high grade mineralization including 4.75 metres at 20.3 grams per tonne gold. The drilling was below the mine workings along 300 metres of strike between sections 856,970 E and 857,200 E extending the vertical extent of known gold mineralization. Mineralization is open to depth in an area with no previous drilling and outside of the mineral resource and mineral reserve (news release dated March 19, 2018).
Regional targets at the Santa Rosa Gold Project within five kilometres from the completed mill were drill tested for the first time resulting in multiple discoveries of parallel high-grade veins (news release dated July 10, 2017).
(Data proved at link)
http://www.redeaglemining.com/news/details/index.php?content_id=395
4Godnwv
7 years ago
RED EAGLE MINING SANTA ROSA OPERATIONS UPDATE
February 8, 2018 – Red Eagle Mining Corporation (TSX: R, BVL: R, OTCQX: RDEMF) is pleased to provide an update on operations at the Santa Rosa Gold Project, Antioquia, Colombia. The mill successfully started-up on January 2, 2018 as planned and has been operating continuously ramping up to 750 tonnes per day currently. A test gold pour was successfully completed at the end of January with the first commercial pour scheduled for the end of February. 1,500 – 2,000 ounces of gold are estimated to be poured in February during ramp up with 2018 production estimated to be 45,000 – 50,000 ounces of gold.
Underground development at the San Ramon Gold Mine continues to advance according to plan with 436 metres in January. Development during January was primarily focused on secondary access ramps and attack ramps on levels -100, -125 and -150 metres, measured from surface.
San Ramon currently has 23 attack ramps with 19 in production (which provided 35 active production faces in January) and the remaining attack ramps in breasting, backfill or development. The attack ramps in breasting, backfill and development in January are expected to provide 15 additional production faces in February. Stope mining operations continued to ramp up in January with 7,560 tonnes at 4.3 grams per tonne gold mined during the month but were below plan due to scoop availability. New equipment arrived at site and was put into operation at the end of January supporting increased production in February. The final two new scoops are due for delivery at the end of February. 9,382 tonnes at 5.6 grams per tonne gold remain stockpiled at January 31.
About Red Eagle Mining
Red Eagle Mining is a gold producer focused on building shareholder value through acquiring, developing and operating gold and silver projects in Colombia, a jurisdiction with prolific historic production but until recently limited modern exploration. Red Eagle Mining owns 100% of the Santa Rosa Gold Project and controls Red Eagle Exploration which owns 100% of the Vetas Gold, California Gold and Santa Ana Silver Projects.
For further information on Red Eagle Mining please contact:
Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
+1 604 360 5722 mobile
balit@redeaglemining.com
redeaglemining.com
4Godnwv
7 years ago
RED EAGLE MINING SANTA ROSA OPERATIONS UPDATE
October 10, 2017 – Red Eagle Mining Corporation (TSX: R, BVL: R, OTCQX: RDEMF) is pleased to provide an update on operations at the Santa Rosa Gold Project, Antioquia, Colombia.
Mine Development
Underground development at the San Ramon Gold Mine continues to advance according to plan with 592 metres in September for a total of 1,756 metres completed in the third quarter and 4,055 metres completed year-to-date. Development has been primarily focused on secondary access ramps and advancing eight attack ramps with the potential for up to 32 ore headings on levels -125, -150 and -175 metres, measured from surface. During September four of these attack ramps crossed the mineralized shear zone defining economic ore headings with channel sampling averaging 7.35 grams per tonne gold over an average stope width of 3 metres. Prior to mill startup in January 2018, Red Eagle Mining expects to have stockpiled 21,000 tonnes of development ore through December 2017.
Add-on Paste Backfill Plant
Conceptual design of the planned paste plant was finalized in September with review of the proposed conventional flow sheet, material and water balance. Construction is planned to commence during November 2017 and be completed during January 2018. Design of the underground reticulation system was completed with materials expected and underground installation to commence by the end of the month.
Geotechnical Review
A detailed geotechnical review by a third party geotechnical consultant was completed during September with very favorable results that should lead to lower drilling, blasting and ground support costs and reduced dilution.
About Red Eagle Mining
Red Eagle Mining is a gold producer focused on building shareholder value through acquiring, developing and operating gold projects in Colombia, a jurisdiction with prolific historic production but until recently limited modern exploration. Red Eagle Mining owns 100% of the Santa Rosa Gold Project and controls Red Eagle Exploration Limited which owns 100% of the Vetas Gold, California Gold and Santa Ana Silver Projects and is actively consolidating additional high grade precious metal deposits in Colombia.
For further information on Red Eagle Mining please contact:
Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
+1 604 360 5722 mobile
balit@redeaglemining.com
redeaglemining.com
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 Red Eagle Mining 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, cost overruns and mining delays, 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.
4Godnwv
8 years ago
RED EAGLE MINING REPORTS Q1 2017 FINANCIAL RESULTS
May 16, 2017 – Red Eagle Mining Corporation (TSX: R, BVL: R, OTCQX: RDEMF) is pleased to announce financial results for the three months ending March 31, 2017 and business highlights to date including:
Declared Commercial Production at the San Ramon Gold Mine on March 31, 2017 (news release dated April 10, 2017);
Acquired the high grade California Gold Project through Red Eagle Mining’s controlled public subsidiary Red Eagle Exploration Limited (news releases dated February 15, 2017 and March 15, 2017);
Closed bought deal equity financing of common shares with BMO Capital Markets for gross proceeds of C $17,250,000 including the entire over-allotment option (news release dated February 21, 2017);
Brian Peer was appointed General Manager of the Santa Rosa Gold Project on February 18, 2017. Mr. Peer has 31 years of mining experience including 19 years in senior management. Most recently, he was Country Manager of Mexico for Alamos Gold, responsible for the safe and efficient operations of two mines and the development of an additional two mines. Previously, Mr. Peer worked for Coeur Mining and for 10 years at Barrick Gold; and
Completed 2016 detailed ore production stope delineation drilling at the San Ramon Gold Mine. Results from the delineation drilling exceeded expectations with many intercept grades significantly higher than the reserve grade of 5.2 g/t Au. (news release dated January 17, 2017).
Operations Update
Mine Development
Underground development continues to advance well in competent granodiorite without support at an average of 16 metres per day. The main and secondary ramps have advanced 2.8 kilometres from the portal. A 57 metre vertical ventilation shaft has been completed and connected to the underground workings.
Initial poor ground conditions were encountered in the stopes, particularly close to the saprolite contact and historic workings, resulting in slower mining rates and greater dilution than planned in start-up. Accordingly, the mining method has been adjusted to include conventional along with mechanized cut and fill stoping optimizing mining the narrower high grade veins and reducing dilution. Stope lengths have been reduced to 40 metres, a paste back fill program has been tested and is being implemented and ground controls have improved to minimize dilution.
Mill
The processing facility commissioning is complete and exceeding design throughput with the capability to process up to 1,200 tonnes per day. The processing facility was batch processing lower grade stockpiles through February 2017. During March the Mill processed 763 tonnes per day. Higher grade ore was blended with lower grade stockpiles to ensure operating efficiency throughout March, moderately reducing recoveries from 93% to 90% during the month.
Safety
Operations have continued to adopt and promote best practices in safety with many awareness programs in place and monitoring occurring on a continuous basis. The results have been demonstrated in the safety statistics to date.
Social and Environmental
Red Eagle Mining continues to maintain positive relationships with and be involved with the local communities. Continuous information flow has been maintained with all stakeholders regarding the advances of the operations. Red Eagle Mining is committed to maximizing local employment and is proud to have already employed 56% of its workforce from the local municipality of Santa Rosa de Osos. Red Eagle Mining continues to strictly adhere to the terms of its Environmental License and the associated Environmental Management Plan. The Environmental Agency, along with local committees, has maintained a strict monitoring program as the project has progressed with visits at least monthly. Red Eagle Mining has received positive inspection reports from all inspections.
Outlook
Underground production crews continue to build on their expertise and efficiency. Production rates and grade continue to increase as the underground team adjusts to more controlled mining methods and additional production faces open up. The -100 and -125 metre levels, measured from surface, are currently being mined with seven ore development headings. The -150 metre level will be accessed during June with the additional faces allowing much more production flexibility.
The Mill is currently processing approximately 750 tonnes per day with planned shutdowns for routine maintenance when stockpiles are depleted. The current processing run commenced April 20 and is expected to continue through late May. With higher grade ore being processed recoveries are expected to return to 93%.
A mining stope delineation drill program is planned to commence in June and continue for the life of the mine. The 2016 drill program and underground face samples positively reconciled grade against the resource model. Exploration drilling is currently underway testing the eastern extent of the San Ramon Gold Deposit and multiple targets approximately 3 kilometres to the west of the processing facility.
Production guidance for 2017 is 30,000 to 40,000 ounces of gold.
Key Pre-Commercial Production Metrics
Total Q1 2017
Decline Development (metres) 808
Ore Development (metres) 589
Ore Mined (tonnes) 34,210
Ore Processed* (tonnes) 23,666
Au Produced* (ounces) 1,758
Recovery* 90%
Average Per Day
Development (metres) 16
Ore Mined (tonnes) 380
Ore Processed* (tonnes) 763
*March only as processing commenced March 1, 2017
Selected Financial Data
The following selected financial data is derived from our unaudited interim condensed consolidated financial statements for the three months ended March 31, 2017, as prepared in accordance with International Financial Reporting Standards (all amounts in thousands of US dollars, except per share amounts).
For the three months ended March 31, 2017 March 31, 2016
Net Loss $2,591 $145
Comprehensive Loss (Income) 2,181 (1,293)
Basic & Diluted Loss per Share 0.01 0.00
As at March 31, 2017 December 31, 2016
Cash & Cash Equivalents $5,917 $4,202
Total Assets 136,800 122,020
Total Liabilities 87,506 84,591
Shareholders’ Equity 49,254 37,429
For the three months ended March 31, 2017, Red Eagle Mining reported a net loss of $2.6 million (2016: $0.1 million). The net loss increased compared to the 2016 period primarily due to an unrealized foreign exchange gain on the construction credit facility during the 2016 period and increased expenses associated with the ramp up of the San Ramon Gold Mine and Mill during the 2017 period, which also resulted in the increased values of Total Assets and Shareholders’ Equity. The increase in Total Liabilities primarily relates to amounts outstanding on the construction credit facility.
This press release should be read in conjunction with the unaudited interim condensed consolidated financial statements and Management’s Discussion and Analysis for the three months ended March 31, 2017. These documents can be found on Red Eagle Mining’s website or profile at www.sedar.com.
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 gold producer focused on building shareholder value through discovering, developing and operating 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 owns 100% of the Santa Rosa Gold Project where the San Ramon Gold Mine has commenced commercial production. Red Eagle Mining also operates and controls Red Eagle Exploration which owns 100% of the California Gold, Vetas Gold, and Santa Ana Silver Projects and is actively consolidating high grade precious metal deposits in Colombia.
For further information on Red Eagle Mining Corporation please contact:
Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
+1 604 360 5722 mobile
balit@redeaglemining.com
www.redeaglemining.com
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 Red Eagle Mining 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.
2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
4Godnwv
8 years ago
RED EAGLE EXPLORATION ANNOUNCES $20 MILLION FINANCING
April 19, 2017 – Red Eagle Exploration Limited (TSX-V: XR) (“Red Eagle Exploration”) is pleased to announce that a preliminary prospectus has been filed in connection with a marketed offering of units (the “Units”), at a price of $0.15 per Unit (the “Issue Price”), for aggregate gross proceeds of a minimum of $10 million and a maximum of $20 million (the “Offering”). The Offering will be co-led by Haywood Securities Inc. and National Bank Financial Inc. on behalf of a syndicate of agents including PI Financial Corp. (collectively, the “Agents”). Kallpa Securities Sociedad Agente de Bolsa S.A. will act as special selling agent solely in connection with the Offering in South America. Each Unit will consist of one common share in the capital of Red Eagle Exploration (a “Common Share”) and one common share purchase warrant in the capital of Red Eagle Exploration (a “Warrant”). Each Warrant will entitle the holder thereof to purchase one common share (a “Warrant Share”) at a price of $0.25 per Warrant Share for a period of 18 months following the closing date of the Offering.
In addition, Red Eagle Exploration has granted the Agents an option to purchase up to an additional 15% of the Units sold under the Offering at the Issue Price at any time until 30 days following the closing date. In the event that the maximum offering size is sold and the over-allotment option is exercised in its entirety, the aggregate gross proceeds of the offering will be up to $23 million.
The Units will be offered by way of a short form prospectus which has been filed in all of the provinces of Canada (other than Quebec) pursuant to National Instrument 44-101 Short Form Prospectus Distributions and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended. Closing of the Offering is anticipated to occur on or about May 12, 2017 and is subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange.
The net proceeds of the Offering will be used to fund property option and acquisition costs, exploration and development programs at the Vetas Gold, California Gold and Santa Ana Silver Projects, and for general corporate and working capital purposes.
The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Red Eagle Exploration
Red Eagle Exploration is a precious metals exploration and development corporation majority owned by gold producer Red Eagle Mining Corporation. Red Eagle Exploration has an experienced exploration and mine development team focused on building shareholder value through acquiring and developing high grade gold and silver projects with low costs and low technical risks in Colombia, a jurisdiction with prolific historic production but until recently limited modern exploration. Red Eagle Exploration owns 100% of the Vetas Gold, California Gold and Santa Ana Silver Projects, which consist of numerous historic and existing mines and where exploration is currently underway to delineate high-grade vein resources exploitable by modern underground mining.
For further information, please contact Ian Slater, Chief Executive Officer or:
Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
balit@redeaglemining.com
4Godnwv
8 years ago
RED EAGLE EXPLORATION APPOINTS LEO HATHAWAY AND BEN PULLINGER DIRECTORS
April 18, 2017 – Red Eagle Exploration Limited (TSX-V: XR) is pleased to announce that Leo Hathaway and Ben Pullinger have been appointed to the board of directors. Red Eagle Mining nominees Tim Petterson and Jay Sujir have resigned from the board of Red Eagle Exploration, though they remain directors of Red Eagle Mining. The board of directors of Red Eagle Exploration now consists of Red Eagle Mining nominees Ian Slater and Bob Bell and independent directors Leo Hathaway and Ben Pullinger.
Leo Hathaway is a geologist with extensive experience in the exploration and mining sector from grassroots to feasibility and development stage projects. He currently serves as Senior Vice President Exploration for Lumina Gold, Chief Geological Officer for Anfield Gold and Executive Vice President Exploration for Libero Mining. Since 2004, Mr. Hathaway was formerly Chief Geological Officer for Lumina Copper, Vice President Exploration for Northern Peru Copper, Regalito Copper, Global Copper and Lumina Resources, as well as a partner in Lumina Capital LP. Prior to 2004, he worked for Inmet Mining in Europe, Australia, Central and South America. Mr. Hathaway holds a B.Sc. (Hons) degree in Applied Geology from the University of Plymouth, a M.Sc. in Mineral Exploration from the University of London and a P.Geo from the Association of Professional Geoscientists of Ontario.
Leo Hathaway was a senior consultant to Ventana Gold's technical team guiding exploration, geological modelling, resource estimation and representatively of metallurgical sampling. Ventana Gold held La Bodega gold deposit which is adjacent and along strike from Red Eagle Exploration’s California Gold Project.
Ben Pullinger has over 12 years of experience in advancing projects from early stage exploration through to production including marketing, financing, planning and execution. Currently Mr. Pullinger serves as Vice President Geology for Excellon Resources. Most recently, he was Vice President Exploration for Roxgold where he made a significant contribution towards growing the 55 Zone at the Yaramoko Project in Burkina Faso from a small inferred gold resource into a producing mine, and additionally discovered the high grade QV1 and QV' gold resources. Mr. Pullinger also made significant contributions to the purchase of and subsequent discoveries on the Manfo Project for Pelangio Exploration and worked as an analyst at Toll Cross. Mr. Pullinger has extensive international experience in Asia, South America, North America and Africa. He holds a B.Sc. (Hons) degree in Geology from the University of Johannesburg and a P.Geo from the Association of Professional Geoscientists of Ontario.
“Both Leo and Ben have extensive experience with underground high grade precious metal deposits and will be instrumental as we de-risk Red Eagle Exploration’s extensive portfolio of high grade gold and silver projects in Colombia,” comments Ian Slater, Chief Executive Officer.
For further information, please contact Ian Slater, Chief Executive Officer or:
Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
balit@redeaglemining.com
4Godnwv
8 years ago
CB GOLD CHANGES NAME TO RED EAGLE EXPLORATION
March 2, 2017 – Red Eagle Exploration Limited (TSX-V: XR) is pleased to announce the TSX Venture Exchange has approved its name change from CB Gold Inc. to Red Eagle Exploration Limited. On Monday March 6, 2017, Red Eagle Exploration common shares will begin trading on the TSX Venture Exchange under the new symbol “XR”.
Red Eagle Exploration further wishes to clarify that 4,666,700 common shares will be issued in connection with the amended acquisition agreement for the San Bartolo property and not 3,450,000 common shares, which was referred to in error in the news release dated February 15, 2017.
About Red Eagle Exploration
Red Eagle Exploration is a well-financed precious metals exploration and development corporation majority owned by gold producer Red Eagle Mining Corporation. Red Eagle Exploration has an experienced exploration and mine development team focused on building shareholder value through acquiring and developing high grade gold and silver projects with low costs and low technical risks in Colombia, a jurisdiction with prolific historic production but until recently limited modern exploration. Red Eagle Exploration owns 100% of the California Gold, Vetas Gold and Santa Ana Silver Projects, which consist of numerous historic and existing mines and where exploration is currently underway to delineate high-grade vein resources exploitable by modern underground mining methods.
For further information, please contact Ian Slater, Chief Executive Officer or:
Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
balit@redeaglemining.com
4Godnwv
8 years ago
RED EAGLE MINING CLOSES BOUGHT DEAL FINANCING
February 21, 2017 – Red Eagle Mining Corporation (TSX: R, BVL: R, OTCQX: RDEMF) is pleased to announce today that it has closed its previously announced bought deal financing of 20,000,000 Common Shares (the “Common Shares”) at a price of $0.75 per Common Share for aggregate gross proceeds of $15,000,000. The underwriters also exercised the over-allotment option in full and purchased an additional 3,000,000 Common Shares for additional gross proceeds of $2,250,000.
The Common Shares were issued by way of public offering in all of the provinces of Canada, other than Quebec, pursuant to a short form prospectus dated February 14, 2017, and were underwritten by a syndicate of underwriters led by BMO Capital Markets and including National Bank Financial Inc.
The net proceeds of the offering will be used to advance exploration of the Santa Rosa Gold Project and for working capital purposes.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Red Eagle Mining
Red Eagle Mining is a gold producer 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 owns 100% of the Santa Rosa Gold Project where the San Ramon Gold Mine has commenced production. Red Eagle Mining also controls CB Gold which owns 100% of the California Gold, Vetas Gold, and Santa Ana Silver Projects and is actively consolidating additional high grade precious metal deposits in Colombia.
For further information on Red Eagle Mining please contact:
Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
+1 604 360 5722 mobile
balit@redeaglemining.com
redeaglemining.com
4Godnwv
8 years ago
CB GOLD (majority owned by Red Eagle Mining) ACQUIRES CONCESSIONS IN THE CALIFORNIA GOLD DISTRICT
February 15, 2017 – CB Gold Inc. (TSX-V: CBJ) is pleased to announce the acquisition of a strategic block of six exploitation mining concessions totalling 126 hectares in the prolific California-Vetas Gold District located in Santander, Colombia. The six properties, which collectively comprise the California Gold Project, are adjacent to and along strike from concessions which contain La Bodega gold deposit currently being developed by Mubadala Development. The last public NI 43-101 Technical Report for La Bodega was issued by Ventana Gold dated effective November 8, 2010 and reported an Inferred resource of 3.47M ounces of gold.[1]
One of the acquired concessions were previously optioned by Calvista Gold which conducted a nine hole diamond drill program during 2011 and 2012. These results were incorporated in a NI 43-101 Technical Report on the California Gold Project dated effective October 11, 2012 and included intercepts: [2]
Table 1: California Gold Project Drill Intersections
Hole From (m) To (m) Width (m) Au (g/t)
DDH-31 144.78 146.30 1.52 12.29
DDH-31 182.88 184.40 1.52 10.36
DDH-34 377.95 381.00 3.05 12.08
DDH-35 28.95 36.57 7.61 9.85
DDH-36 35.05 48.76 13.71 5.93
DDH-37 425.19 426.72 1.53 10.58
CB Gold plans to advance the California Gold Project toward economic feasibility by the delineation of high-grade vein resources exploitable by modern underground mining methods. This work will initially involve compiling existing data, detailed underground mapping of existing mine workings, detailed underground channel sampling, and prioritizing targets for subsequent drifting along with surface and underground diamond drilling as soon as possible.
The California Gold Project is located approximately ten kilometres from CB Gold’s existing Vetas Gold Project, potentially resulting in operational synergies including processing at a central mill.
Transaction
CB Gold has an option to purchase 100% of six exploitation mining concessions from local miners for consideration of US $5,683,764 and US $7,561,746 which is payable in shares of CB Gold. Initial payments of US $345,127 and $501,626 payable in shares of CB Gold are due upon closing. The balance of the payments are due over a two year period subsequent to title transfer. An additional payment is due three years from the date of title transfer equivalent to 1.5% of the value of gold and silver Measured and Indicated resources included in a NI 43-101 Technical Report.
About the California Gold Project
The California Gold Project comprises 126 hectares within the prolific California-Vetas Gold District, which also contains the multi-million ounce La Bodega and Angostura gold deposits. The property is located approximately 55 kilometres northeast of Bucaramanga, which is the capital of the Department of Santander in Colombia. Elevation ranges from 2,400 to 2,700 metres above sea level, far below the Paramo boundaries.
California is situated in the Santander Massif of the eastern cordillera of the Andes Mountains. The massif is comprised of Precambrian gneisses, schists, quartzites and migmatites of the Guyana Shield. Intermediate to granitic instrusives of the Santander Plutonic Group were emplaced during a period of uplift in the Jurassic/Triassic era. Porphyry instrusive stocks and dikes in the immediate areas of mineralization may be as young as Tertiary in age. Regional faulting parallels the topographic fabric with the crustal-scale northwest trending Bucaramanga-Santa Marta wrench fault and the northeast trending Rio Cucutilla fault zone defining the principal structural trends.
The gold-silver-copper mineralization in the California Gold Project is part of the same, large mineralizing system localized along a regional northeast-trending fault zone that also hosts the adjacent La Bodega deposit. Mineralization occurs in northeast, northwest and east-west striking, generally steeply north-dipping faulted structures containing high grade veins up to two metres in width. Vein mineralogy includes pyrite, chalcopyrite, sphalerite, and copper sulphides, with traces of silver minerals and sometimes visible gold.
Vetas Gold Project
CB Gold has amended the acquisition agreement for the San Bartolo and San Antonio properties, which together with other properties collectively comprise the Vetas Gold Project. A portion of the properties were affected by the delineation of the Paramo boundaries and the outstanding amount payable has been adjusted accordingly. As final payment, CB Gold has agreed to issue 3,450,000 common shares and pay US $500,000 in cash with respect to the San Bartolo Property and issue 116,700 common shares with respect to the San Antonio property.
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.
The transactions are subject to the approval of the TSX Venture Exchange.
About CB Gold
CB Gold is a well-financed precious metals exploration and development corporation majority owned by gold producer Red Eagle Mining Corporation. CB Gold has an experienced exploration and mine development team focused on building shareholder value through acquiring and developing high grade gold and silver projects with low costs and low technical risks in Colombia, a jurisdiction with prolific historic production but until recently limited modern exploration. CB Gold owns 100% of the California Gold, Vetas Gold and Santa Ana Silver Projects, which consist of numerous historic and existing mines and where exploration is currently underway to delineate high-grade vein resources exploitable by modern underground mining methods.
For further information, please contact Ian Slater, Chief Executive Officer or:
Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
balit@redeaglemining.com
LGL8054
8 years ago
RED EAGLE MINING ANNOUNCES $10,000,000 BOUGHT DEAL FINANCING
January 31, 2017 – Red Eagle Mining Corporation (TSX: R, BVL: R, OTCQX: RDEMF) has announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, under which the underwriters have agreed to buy on bought deal basis 13,400,000 common shares (the “Common Shares”), at a price of $0.75 per Common Share for gross proceeds of approximately $10,000,000 (the “Offering”). Red Eagle Mining has granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Offering to cover overallotments, if any. The offering is expected to close on or about February 21, 2017 and is subject to Red Eagle Mining receiving all necessary regulatory approvals.
The net proceeds of the offering will be used to advance exploration of the Santa Rosa Gold Project and for working capital purposes.
The Common Shares will be offered by way of a short form prospectus in all of the provinces of Canada, except Quebec and may also be offered by way of private placement in the United States.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Red Eagle Mining
Red Eagle Mining is a gold producer 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 owns 100% of the Santa Rosa Gold Project where the San Ramon Gold Mine has commenced production. Red Eagle Mining also controls CB Gold which owns 100% of the Vetas Gold and Santa Ana Silver Projects and is actively consolidating additional high grade precious metal deposits in Colombia.
For further information on Red Eagle Mining please contact:
Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
+1 604 360 5722 mobile
balit@redeaglemining.com
redeaglemining.com
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 Red Eagle Mining 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, cost overruns and mining delays, 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.
4Godnwv
8 years ago
RED EAGLE MINING OPERATIONS UPDATE AT SANTA ROSA
January 23, 2017 – Red Eagle Mining Corporation (TSX: R, BVL: R, OTCQX: RDEMF) is pleased to provide an update on operations at the Santa Rosa Gold Project, Antioquia, Colombia.
“We are very pleased to have completed commissioning of the plant and producing 1,850 ounces of gold since start-up,” comments Bob Bell, Chief Operating Officer. “Ramp up of the mine continues to progress and we look forward to announcing commercial production by the end of Q1 2017.”
Achievements to Date
Best safety practices adopted with no major incidents to date;
High voltage transmission line construction complete and energized, connecting the project to the national electrical grid;
Main and secondary underground ramps have progressed to over 1.4 kilometres in length;
60 metre vertical ventilation shaft completed and connected to the underground workings;
Over 19,000 tonnes of ore mined;
Crusher operating within design parameters;
Processing facility commissioning now complete, meeting design throughput, with the mill being run on a campaign basis while mine ore production rates are ramped up;
Dry waste management facility complete with filtered tailings being dry stacked;
Gold recoveries have reached 93% - on track to design rate of 96%; and
1,850 ounces of gold produced since pre-commercial start-up.
2016 Key Production Metrics
Jan-Sept October November December Total
Total
Decline Development (metres) 496 319 322 331 1,468
Ore Development (metres) 360 110 191 343 1,004
Ore Mined (tonnes) - 3,465 6,712 9,224 19,401
Average Per Day
Development (metres) 3 14 17 22
Ore Mined (tonnes) - 111 224 298
Mine Development
Underground development continues to advance well. Since Q3 2016 when the decline moved through oxidized material requiring support into competent granodiorite, daily advance rates have substantially increased from 3 metres per day to 22 metres per day. The main and secondary ramps have advanced a total of 1.4 kilometres from the portal. Four 100 metre strike length stoping blocks have been opened up on the 50, 75 and 100 metre levels, including 12 ore development headings with 6 main stopes.
The 10,000 metre stope delineation drill programme completed in December, 2016 (news release dated January 17, 2017) and underground face samples have positively reconciled grade against the resource model.
Some initial poor ground conditions were encountered, particularly close to the saprolite contact, resulting in slower mining rates and modestly greater dilution than planned in startup. Accordingly, the mining method has been adjusted to conventional flat back cut and fill stoping, stope lengths have been reduced to 50 metres and ground controls are improving to minimize dilution.
Outlook
Underground production crews continue to increase their expertise and efficiency. Production rates are expected to accelerate in February and March as the underground team adjusts to more controlled stoping methods and additional production faces open up. The mine plan has 10 stopes operating in March, subsequently ramping up to full operations with 14 stopes. At any given time half the stopes will be in production at an estimated rate of 150 tonnes per day and half will be in support and filling.
Exploration drilling is currently underway testing the eastern extent of the San Ramon Gold Deposit and the Rojo target 3 kilometres to the west of the processing facility.
Commercial production of 750 tonnes per day is anticipated to be achieved by the end of Q1 2017. As at December 31, 2016, Red Eagle Mining held $4 million in cash and is managing working capital while advancing to positive cash flow in the coming months.
The technical information contained in this news release has been reviewed and approved by Red Eagle Mining’s Vice President Exploration, Jeff Toohey P.Eng., who is a “Qualified Person” as defined under National Instrument 43-101.
About Red Eagle Mining
Red Eagle Mining is a gold producer 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 owns 100% of the Santa Rosa Gold Project where the San Ramon Gold Mine has commenced production. Red Eagle Mining also controls CB Gold which owns 100% of the Vetas Gold and Santa Ana Silver Projects and is actively consolidating additional high grade precious metal deposits in Colombia.
For further information on Red Eagle Mining please contact:
Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
+1 604 360 5722 mobile
balit@redeaglemining.com
redeaglemining.com
4Godnwv
8 years ago
RED EAGLE MINING INTERSECTS 5 METRES AT 33 GRAMS GOLD PER TONNE
January 17, 2017 – Red Eagle Mining Corporation (TSX: R, BVL: ROTCQX: RDEMF) is pleased to announce results from the 2016 ore production stope delineation drilling programme at the San Ramon Gold Mine, Santa Rosa Gold Project, Antioquia, Colombia. The 10,000m programme was drilled from eight pads spaced over 300m of strike length. 107 diamond drill holes (SRD-0001 to SRD-0107) were drilled on approximately 15m centres from near surface to a vertical depth of 160m from surface. The programme only in-fill drilled a portion of the reserves at the San Ramon Gold Mine which overall extend for 2km of strike length and to 250m depth. The deposit is also open both at depth and on strike to the east where exploration drilling is currently underway. Results from the initial 95 holes (SRD-0001 to SRD-0095) were previously announced. Highlights from the programme include intersections:
SRD-0027 – 10.73m at 8.91 g/t Au from 60.66m down hole (incl. 1.20m at 21.39 g/t Au and 1.10m at 35.37 g/t Au)
SRD-0029 – 6.70m at 12.69 g/t Au from 69.80m down hole (incl. 1.40m at 45.06 g/t Au)
SRD-0038 – 8.25m at 5.89 g/t Au from 37.25m down hole (incl. 0.65m at 36.17 g/t Au)
SRD-0038 – 5.45m at 11.53 g/t Au from 54.55m down hole (incl. 0.92m at 30.81 g/t Au)
SRD-0043 – 2.70m at 20.56 g/t Au from 81.20m down hole (incl. 0.93m at 49.26 g/t Au)
SRD-0044 – 4.25m at 20.60 g/t Au from 89.75m down hole (incl. 0.74m at 78.35 g/t Au and 0.45m at 40.21 g/t Au)
SRD-0046 – 12.56m at 7.66 g/t Au from 67.64m down hole (incl. 1.05m at 48.70 g/t Au)
SRD-0046 – 9.68m at 7.89 g/t Au from 94.70m down hole (incl. 0.70m at 48.88 g/t Au)
SRD-0046 – 2.07m at 42.62 g/t Au from 130.70m down hole
SRD-0047 – 5.21m at 7.47 g/t Au from 93.15m down hole (incl. 1.41m at 19.18 g/t Au)
SRD-0049 – 7.16m at 29.03 g/t Au from 131.82m down hole (incl. 2.31m at 73.96 g/t Au)
SRD-0054 – 3.92m at 12.83 g/t Au from 50.78m down hole (incl. 1.40m at 30.70 g/t Au)
SRD-0068 – 2.90m at 27.35 g/t Au from 69.90m down hole
SRD-0083 – 4.05m at 10.45 g/t Au from 68.30m down hole
SRD-0091 – 2.40m at 23.34 g/t Au from 72.60m down hole
SRD-0093 – 12.60m at 16.47 g/t Au from 89.90m down hole (incl. 0.50m at 83.60 g/t Au)
SRD-0101 – 5.15m at 33.39 g/t Au from 89.55m down hole (incl. 0.60m at 75.56 g/t Au)
SRD-0105 – 6.15m at 12.82 g/t Au from 90.15m down hole (incl. 0.95m at 41.40 g/t Au)
Results from the delineation drilling exceeded expectations with intercepts often significantly longer that the average mining width of 3m and grades significantly higher than the reserve grade of 5.2 g/t Au. For complete drilling results, please see Table 1 – Drill Hole Intersections and Table 2 – Drill Hole Specifications. Plans and cross sections can be found on Red Eagle Mining’s website. Drill assays were composited by length-weighted averaging into intersections using a 2 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 Mining’s flickr.
Quality Assurance and Quality Control
All technical information for Red Eagle Mining’s Santa Rosa Project in Antioquia, Colombia is obtained and reported under formal quality assurance and quality control (QA/QC) procedures and guidelines. Red Eagle Mining’s procedures are designed to meet or exceed C.I.M. “Best Practices Guidelines” and National Instrument 43-101 standards of disclosure. QA/QC protocols for drill core sampling and assaying include the insertion and monitoring of appropriate reference materials (certified standards, blanks and duplicates) to validate the accuracy and precision of the assay results.
All drilling samples were collected with a diamond core drilling rig using approximately one metre sample intervals following industry standard practice. Activation Laboratories Ltd. prepared and assayed the samples at their laboratory in Medellin, Colombia. Fire Assay for Au (using a 50 gram sample) with an AAS finish was carried out routinely on all samples submitted. For all samples which returned initial Au fire assays of greater than 5 g/t, a second Fire Assay for Au was performed (also using a 50 gram sample) with a gravimetric finish.
The technical information contained in this news release has been reviewed and approved by Red Eagle Mining’s Vice President Exploration, Jeff Toohey P.Eng., who is a “Qualified Person” as defined under National Instrument 43-101.
About Red Eagle Mining
Red Eagle Mining is a gold producer 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 owns 100% of the Santa Rosa Gold Project where the San Ramon Gold Mine has commenced production. Red Eagle Mining also controls CB Gold which owns 100% of the Vetas Gold and Santa Ana Silver Projects and is actively consolidating additional high grade precious metal deposits in Colombia.
For further information on Red Eagle Mining please contact:
Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
+1 604 360 5722 mobile
balit@redeaglemining.com
redeaglemining.com
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 Red Eagle Mining 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, cost overruns and mining delays, 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.
4Godnwv
8 years ago
RED EAGLE MINING INTERSECTS 12.60 METRES AT 16.47 GRAMS GOLD PER TONNE
December 6, 2016 – Red Eagle Mining Corporation (TSX: R, BVL: R, OTCQX: RDEMF) is pleased to announce results from ongoing ore production stope delineation drilling at the San Ramon Gold Mine, Santa Rosa Gold Project, Antioquia, Colombia. The results from the initial 50 holes (SRD-0001 to SRD-0050) were previously announced. An additional 45 holes have been completed (SRD-0051 to SRD-0095) with highlights including intersections:
SRD-0054 – 3.92m at 12.83 g/t Au from 50.78m down hole (incl. 1.40m at 30.70 g/t Au)
SRD-0068 – 2.90m at 27.35 g/t Au from 69.90m down hole
SRD-0083 – 4.05m at 10.45 g/t Au from 68.30m down hole
SRD-0091 – 2.40m at 23.34 g/t Au from 72.60m down hole
SRD-0093 – 12.60m at 16.47 g/t Au from 89.90m down hole (incl. 0.50m at 83.60 g/t Au)
Results from the delineation drilling continue to exceed expectations with intercepts significantly longer that the average mining width of 3m and grades significantly higher than the reserve grade of 5.2 g/t Au. For complete drilling results, please see Table 1 – Drill Hole Intersections, Table 2 – Drill Hole Specifications. Drill hole plans and drill pad cross sections can be found on Red Eagle Mining’s website. Drill assays were composited by length-weighted averaging into intersections using a 2 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 Mining’s flickr.
Quality Assurance and Quality Control
All technical information for Red Eagle Mining’s Santa Rosa Project in Antioquia, Colombia is obtained and reported under formal quality assurance and quality control (QA/QC) procedures and guidelines. Red Eagle Mining’s procedures are designed to meet or exceed C.I.M. “Best Practices Guidelines” and National Instrument 43-101 standards of disclosure. QA/QC protocols for drill core sampling and assaying include the insertion and monitoring of appropriate reference materials (certified standards, blanks and duplicates) to validate the accuracy and precision of the assay results.
All drilling samples were collected with a diamond core drilling rig using approximately one metre sample intervals following industry standard practice. Activation Laboratories Ltd. prepared and assayed the samples at their laboratory in Medellin, Colombia. Fire Assay for Au (using a 50 gram sample) with an AAS finish was carried out routinely on all samples submitted. For all samples which returned initial Au fire assays of greater than 5 g/t, a second Fire Assay for Au was performed (also using a 50 gram sample) with a gravimetric finish.
The technical information contained in this news release has been reviewed and approved by Red Eagle Mining’s Vice President Exploration, Jeff Toohey P.Eng., who is a “Qualified Person” as defined under National Instrument 43-101.
About Red Eagle Mining
Red Eagle Mining is a gold producer with an experienced mine operations and development team. Management is focused on building shareholder value through acquiring 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 owns 100% of the Santa Rosa Gold Project, where the San Ramon Gold Mine has commenced production. Red Eagle Mining also controls CB Gold which owns 100% of the Vetas Gold and Santa Ana Silver Projects and is actively consolidating additional high grade precious metal deposits in Colombia.
For further information on Red Eagle Mining please contact:
Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
+1 604 360 5722 mobile
balit@redeaglemining.com
redeaglemining.com
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 Red Eagle Mining 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, cost overruns and mining delays, 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.
4Godnwv
8 years ago
RED EAGLE MINING POURS FIRST GOLD
November 7, 2016 – Red Eagle Mining Corporation (TSX: R, OTCQX: RDEMF, BVL: R) is pleased to announce that it has poured first gold at the Santa Rosa Gold Project in Antioquia, Colombia.
“We are extremely proud to commence production, which is a historic milestone for both Red Eagle Mining and Colombia” comments 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, employees and contractors involved in delivering the Santa Rosa Gold Project from breaking ground to first gold pour in 14 months.”
The Santa Rosa Gold Project was built on budget while maintaining a healthy cash balance of C$16 million. Commercial production is expected in the first quarter of 2017 as production ramps up.
About Red Eagle Mining
Red Eagle Mining is a well-financed gold producer and mine builder with an experienced operations and mine development team. Management is focused on building shareholder value through acquiring, developing and operating high grade 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 owns 100% of the Santa Rosa Gold Project, where production has commenced at the San Ramon Gold Mine. Red Eagle Mining also controls CB Gold which owns 100% of the Vetas Gold and Santa Ana Silver Projects and is actively consolidating additional high grade precious metal deposits in Colombia.
For further information on Red Eagle Mining please contact:
Patrick Balit
Vice President Corporate Development
Red Eagle Mining Corporation
Suite 2348 – 666 Burrard Street
Vancouver, BC, V6C 2X8
+1 778 372 2558
+1 604 360 5722 mobile
balit@redeaglemining.com
redeaglemining.com
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