Red Eagle Mining Announces Feasibility Study Commencement

Red Eagle Mining Corporation (TSX VENTURE:RD)(OTCQX:RDEMF) is pleased to
announce that Lycopodium have commenced a Definitive Feasibility Study for the
San Ramon Gold Deposit within its 100% owned Santa Rosa Gold Project located in
Antioquia, Colombia. Lycopodium is a leading international project management
and engineering firm. The Feasibility Study will be completed with the
participation of globally recognized engineering consultants, including Mine
Development Associates (resource and reserve estimation and mine design), Golder
Associates (tailings management and geotechnical) and McClelland Laboratories
(metallurgy).


The Feasibility Study entails the development of an engineered construction and
operating plan with considerations for social, environmental and water
management, permitting, geotechnical engineering, hydro-geology, metallurgical
testing, process design and mine planning. An Environmental Impact Assessment
has already been completed by Tetra Tech. The Feasibility Study is expected to
be completed during 2014.


The Preliminary Economic Assessment ("PEA") for the San Ramon Gold Deposit
(please see news release dated September 19, 2013) recommended proceeding to
feasibility. Highlights include pre-tax estimated Net Present Value (5%) of $152
million, Internal Rate of Return of 47%, payback in 1.4 years and average cash
costs of $540/ounce (all amounts in US$).




               Table 1 - Summary of San Ramon Economic Results              
----------------------------------------------------------------------------
$1,300/Ounce Gold                           Pre-Tax                 Post-Tax
----------------------------------------------------------------------------
Net Cash Flow                          $211 million             $159 million
----------------------------------------------------------------------------
Net Present Value (5%)                 $152 million             $113 million
----------------------------------------------------------------------------
Internal Rate of Return                         47%                      37%
----------------------------------------------------------------------------
Payback                                   1.4 years                1.7 years
----------------------------------------------------------------------------
                                                                            
                 Table 2 - Summary of San Ramon Key PEA Data                
----------------------------------------------------------------------------
Average Annual Production                                     51,000 oz/year
----------------------------------------------------------------------------
Processing Rate                                             1,000 tonnes/day
----------------------------------------------------------------------------
Life of Mine ("LOM")                                                10 years
----------------------------------------------------------------------------
Initial Capex (incl. $11M contingency)                           $84 million
----------------------------------------------------------------------------
Cash Costs                                           $540/ounce or $76/tonne
----------------------------------------------------------------------------
Years 1-5 Fully Diluted Processed Grade            5.38 grams gold per tonne
----------------------------------------------------------------------------
LOM Fully Diluted Processed Grade                  4.76 grams gold per tonne
----------------------------------------------------------------------------
CIL Gold Recovery                                                        93%
----------------------------------------------------------------------------



The PEA was prepared by Mine Development Associates in accordance with the
definitions in Canadian National Instrument 43-101 ("NI 43-101"). The PEA is
considered preliminary in nature. It includes Inferred mineral resources that
are considered too speculative to have the economic considerations applied that
would enable classification as mineral reserves. There is no certainty that the
conclusions within the PEA will be realised. Mineral resources that are not
mineral reserves do not have demonstrated economic viability.


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. 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 is developing the 320 km2 historic Santa Rosa Gold Project located in the
Antioquia Batholith. Development will initially commence with the San Ramon Gold
Deposit where a positive Preliminary Economic Assessment supports project
advancement. Feasibility and permitting are currently underway.


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. 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Red Eagle Mining Corporation
Ian Slater
Chief Executive Officer
+1 604 638 2545
info@redeaglemining.com
www.redeaglemining.com


James Beesley
Investor Relations
+1 604 682 4600 or Toll free: +1 855 682 4600
Mobile: +1 778 389 7715
james@sequoiapartners.ca
(TSXV:LOM)
過去株価チャート
から 5 2024 まで 6 2024