Red Eagle Mining Corp. (TSX.V: RD) announced results Tuesday from its ongoing drill program at the company’s 100% owned Santa Rosa Gold Project in the Antioquia Department of Colombia.
The current drill campaign at Santa Rosa is focused on the San Ramon deposit and will span over 22,000 meters in length once completed later this month.
Highlighted intercepts from the 14 additional holes released yesterday included 24 meters of 9.03 g/t gold in SR-215, including 0.70 meters of 109.20 g/t gold, and 6 meters of 9.83 g/t gold in SR-219, which included 1.4 meters of 36 g/t gold.
“Our infill drilling programme to 250m depth is now complete and has confirmed continuity of strong gold mineralisation within the extent of a potential open pit at San Ramon," said Red Eagle Vice President of Exploration Jeff Toohey.
Current National Instrument (NI) 43-101 resource estimates at San Ramon include 322,000 ounces of gold in the indicated category and 456,000 ounces of gold in the inferred category.
Red Eagle expects to incorporate data from the current drill program and release an updated NI 43-101 mineral resource estimate in July. Because drilling is being done on 50-meter centers, it’s likely the inferred resource will be upgraded to the indicated category in the upcoming resource estimate.
Additional assay data from the 22,000 meters of drill core is also likely to increase the overall tonnage and grade of the deposit.
The Santa Rosa Project is 30 kilometers west of AngloGold Ashanti’s (NYSE: AU) 3.6 million ounce Gramalote gold deposit and 40 kilometers east of Continental Gold’s (TSX: CNL) 5.4 million ounce Buritica gold deposit.
Red Eagle has focused on fast tracking the deposit towards production. The company is pushing to announce results of both a preliminary economic assessment (PEA) and environmental impact assessment (EIA) by Q4 2013.
Shares of the company are traded on the TSX Venture under the ticker symbol RD. Red Eagle has 58 million shares outstanding and cash equivalents of $12 million. Shares of the company are down sharply year-to-date and market cap now stands at just under $18 million.