Red Eagle Declares Commercial Production at San Ramon

Source: The Gold Report   04/20/2017

Commercial production was declared at Red Eagle Resources’ San Ramon mine in Colombia, nearly five months after announcing the first gold pour.

On April 10, Red Eagle Mining Corp. (R:TSX; RDEMF:OTCQX; R:BVL) announced that it declared commercial production at its San Ramon mine in Antioquia, Colombia, on March 31. The company reported that “the processing facility has reached a steady operating throughput capability and underground mining is progressing at an increasing rate with the opening up of additional ore development headings.”

The company is advancing the decline at the rate of up to 27 meters a day, an increase from an earlier rate of 3 meters a day when the decline was going through less-stable oxidized rock. The decline is now 2.4 kilometers long.

Gwen Preston of Resource Maven noted on April 12 that “the mine and mill are regularly achieving design rates, something that takes a lot more engineering, ingenuity, and dedication that most might realize.”

Preston observed that a “few ground conditions concerns have arisen, enough to slow mining and prompt a switch to mechanized cut and fill instead of long hole stoping. That’s not ideal from a speed and cost perspective, which is why Red Eagle is forecasting 35,000 to 40,000 oz. gold this year, down from earlier expectations. . .the company expects to ramp up the pace and produce the targeted 70,000 oz. in 2018.”

“At this point Red Eagle thinks San Ramon will be cash flow positive in the second quarter. One of the main reasons I invested in this mine is because of its cost structure: San Ramon is supposed to be able to produce an ounce of gold at an all-in sustaining cost of just US$671. That is the other key metric to watch,” wrote Preston.

Preston concluded that she remains “very interested in San Ramon’s potential to produce cash and Red Eagle’s ability to find more gold right around the mine.”

Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.

Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsors of Streetwise Reports: Red Eagle Mining Corp. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Additional disclosures about the sources cited in this article

( Companies Mentioned: R:TSX; RDEMF:OTCQX; R:BVL,
)