Red Eagle Mining Continues to Advance the San Ramon Gold Deposit During 2013

Red Eagle Mining Continues to Advance the San Ramon Gold Deposit During 2013 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 04/23/14 --  Red
Eagle Mining Corporation (TSX VENTURE: RD)(OTCQX: RDEMF) is pleased
to announce financial results for the year ending December 31, 2013
and business highlights to date, including advancements at Red Eagle
Mining's San Ramon Gold Deposit in Antioquia, Colombia.  
2014 work programme: 


 
 
--  Completion of the permitting process with the Secretary of Mines of
    Antioquia and Corantioquia; 
    
--  Completion of a Definitive Feasibility Study; and 
    
--  Exploration of the remainder of the 320 km2 Santa Rosa Gold Project. 

2013 highlights and significant subsequent events: 


 
 
--  Completed $5,000,000 equity financing including a $4,000,000 bought deal
    financing underwritten by a syndicate of underwriters led by Haywood
    Securities Inc. and a $1,000,000 private placement with Liberty Metals &
    Mining Holdings LLC who exercised their participation rights to maintain
    a pro rata 19.9% interest in Red Eagle Mining (news release dated April
    9, 2014); 
    
--  Completion and filing of the Environment Impact Assessment (prepared by
    Tetra Tech, Inc.) with Corantioquia (Environmental Agency of Antioquia).
    This is the final stage in the permitting process (news release dated
    February 24, 2014); 
    
--  Completed $4,166,666 financing with Liberty Metals & Mining Holdings LLC
    for a 1% royalty (news release dated December 20, 2013); 
    
--  Completion and filing of the NI 43-101 Technical Report pertaining to
    the positive Preliminary Economic Assessment ("PEA") for the San Ramon
    Gold Deposit (news release dated September 19, 2013, all amounts in
    US$). Highlights include year one production of 87,000 ounces of gold at
    a fully diluted grade of 8.1 grams gold per tonne and post-tax cash flow
    of $61 million. 

Table 1 - Summary of San Ramon Economic Results 


 
 
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$1,300/Ounce Gold                                    Pre-Tax       Post-Tax 
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Net Cash Flow                                  $ 211 million  $ 159 million 
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Net Present Value (5%)                         $ 152 million  $ 113 million 
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Internal Rate of Return                                   47%            37%
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Payback                                            1.4 years      1.7 years 
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Table 2 - Summary of San Ramon Key PEA Data 


 
 
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Average Annual Production                                    51,000 oz/year 
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Processing Rate                                            1,000 tonnes/day 
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Life of Mine ("LOM")                                               10 years 
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Initial Capex (incl. $11M contingency)                          $84 million 
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Cash Costs                                          $540/ounce or $76/tonne 
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Years 1-5 Fully Diluted Processed                                           
 Grade                                            5.38 grams gold per tonne 
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LOM Fully Diluted Processed Grade                 4.76 grams gold per tonne 
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CIL Gold Recovery                                                        93%
----------------------------------------------------------------------------
 
--  Submission of the mining technical work plan ("PTO") for the San Ramon
    Gold Deposit to the Secretary of Mines of Antioquia during November,
    2013; 
    
--  Reported mapping, soil sampling and rock channel sampling at the Pavo
    Real Gold Project have identified a new area of mineralisation.
    Highlights include 9 grams gold per tonne and 72 grams silver per tonne
    over 6.1 metres and 33.7 grams gold per tonne, greater than 100 grams
    silver per tonne, 0.23% copper and 0.23% zinc over 0.5 metres. This most
    recent rock channel sampling programme was carried out in an area of
    high-level vein and hydrothermal breccia mineralisation associated with
    dykes of rhyodacite porphyry, where MMI soil sampling returned strong
    coincident Au, Ag and Cu anomalies (news releases dated October 8, 2013
    and January 14, 2014); 
    
--  Acceptance as a Tier 1 issuer on the TSX Venture Exchange (news release
    dated August 6, 2013); 
    
--  The successful conversion of an 8,590 hectare application adjacent to
    the north of the San Ramon Gold Deposit from an application to a
    concession contract; 
    
--  The successful application for an additional 1,809 hectares adjacent to
    the north of the existing holdings at the Santa Rosa Gold Project along
    the mineralised trend and an additional 8,800 hectares within the Pavo
    Real Gold Project; and 
    
--  Completion of 45,000 metres of drilling on the San Ramon Gold Deposit
    (news release dated May 28, 2013). 

Selected financial data: 
The following selected financial data is derived from our
consolidated financial statements for the year ended December 31,
2013, as prepared in accordance with International Financial
Reporting Standards (all amounts in CDN$). 


 
 
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For the year ended                       December 31, 2013 December 31, 2012
----------------------------------------------------------------------------
Net loss for the year                    $       9,783,583 $      12,198,024
Comprehensive loss for the year                  9,870,274        12,227,670
Basic and diluted loss per share                      0.17              0.29
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As at                                                                       
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Cash and cash equivalents              $        4,118,484 $       15,893,971
Total assets                                    5,578,368         20,385,464
Total liabilities                               2,137,930          7,035,647
Shareholders' equity                            3,248,339         13,110,970
Cumulative exploration expense                 26,771,965         17,526,147
----------------------------------------------------------------------------

For the year ended December 31, 2013 Red Eagle Mining reported a net
loss of $9.8 million (2012: $12.2 million) with most significant
contribution to the loss being the cost of ongoing exploration of
$9.2 million (2012: $9.8 million). 
This press release should be read in conjunction with the condensed
consolidated financial statements and Management's Discussion and
Analysis for the year ended December 31, 2013. These documents can be
found on Red Eagle Mining's website or profile at www.sedar.com. 
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 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. 
Contacts:
Red Eagle Mining Corporation
Ian Slater
Chief Executive Officer
+1 604 638 2545
info@redeaglemining.com
www.redeaglemining.com 
Investor Relations
James Beesley
+1 604 682 4600 or +1 855 682 4600 toll free
+1 778 389 7715 mobile
james@sequoiapartners.ca
 
 
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