Red Eagle Mining announces drill results at Santa Rosa including 1.00 g/t gold over 58.9 metres

VANCOUVER, Jan. 17, 2012 /CNW/ - Red Eagle Mining Corporation (TSXV: RD) (OTCQX: RDEMF), is pleased to announce drill results from its brownfield Santa Rosa gold project in Colombia. In the first of four major targets, 23 core drill holes totaling 6,811m have now been completed in the South East Sector (see Figure 1 - Drill Hole Plan).  Included in the latest drilling results are some of the most significant intercepts to date from the San Ramon shear zone:

  • SR-003 - 39.7m at 1.59 g/t Au incl. 5.2m at 4.93 g/t Au (previously reported)
  • SR-011 - 58.9m at 1.00 g/t Au incl. 5.1m at 5.37 g/t Au
  • SR-015 - 15.1m at 2.51 g/t Au incl. 3.7m at 6.62 g/t Au
  • SR-016 - 54.0m at 1.01 g/t Au incl. 7.8m at 5.25 g/t Au

The San Ramon shear zone trends east-west, dips 65-70° to the north, is up to 60m in width (averaging 19m) and is exposed at surface (see Figure 2 - Cross Section A-A'). Wide-spaced drilling intercepts to date in the shear zone average approximately 1 g/t Au.  The shear zone has been interpreted to extend over 5km on Red Eagle Mining's concessions and has been drill tested to a vertical depth of over 250m.  To date only 1.8km of the shear zone has been drill tested with all holes intersecting gold mineralization (see Figure 3 - Schematic Long Section). The identified shear zone extends to surface where channel sampling has also averaged approximately 1 g/t Au.  In addition to the disseminated mineralisation there are en echelon high grade veins within the shear zone, as indicated in the following intercepts:

  • SR-003 - 1.0m at 29.40 g/t Au
  • SR-017 - 0.9m at 20.30 g/t Au
  • SR-018 - 1.0m at 57.30 g/t Au

"Our initial fifteen successful drill holes into the San Ramon shear zone have identified a major mineralised horizon that is exposed at surface, extends over a strike length of almost 2km and continues at depth to encompass a potential open pit extending to a depth of at least 200m.  Metallurgically we are encouraged as the gold appears to be associated with quartz and pyrite and historically fine gold has been recovered by gravity techniques", comments Ian Slater, Chief Executive Officer. "In December we completed access roads and moved our rigs to drill test our next targets - the prospective Central and Northwest Sectors."

The San Ramon shear zone is open to the east and extends onto the newly granted concession contract LDM-08061.  Red Eagle Mining completed airborne magnetic, radiometric and geochemistry surveys over the new area in December, extending the current strike length of the San Ramon shear zone from 1.8km to potentially over 5km and identifying prospective drill targets over the additional 3km. The 2012 work program for the San Ramon shear zone includes extending the core drill program to the east along strike, an extensive rotary air blast drill program in the near surface oxide zones along the entire strike of the shear zone and a preliminary metallurgical test work program.

The following table summarizes all significant (+0.20 g/t) gold intercepts in the first phase of the San Ramon shear zone drilling program. For pictures of the drill core see our photostream on flickr.  True widths are estimated to be 90% of the intercepts and vertical depths are estimated to be 70% of the drilled depths reported below. All results are uncut.  Holes SR-001 to SR-005 were previously reported in a news release dated November 30, 2011.  Holes SR-006-008, SR-014 and SR-020-023 targeted anomalies outside of the shear zone and did not return significant results.

Table 1 - San Ramon Shear Zone Gold Intercepts (*previously reported)

Hole ID From (m) To (m) Length (m) Au (g/t)
SR-001* 343.8 363.3 19.5 1.11
incl. 343.8 346.5 2.6 3.78
SR-002* 166.0 182.0 16.0 0.87
incl. 166.0 168.0 2.0 4.49
SR-003* 297.3 337.0 39.7 1.59
incl. 317.0 322.2 5.2 4.93
incl. 332.0 333.0 1.0 29.40
SR-004* 87.9 96.0 8.1 1.17
incl. 87.9 90.3 2.3 2.75
SR-005* 213.0 219.1 6.1 1.33
incl. 218.3 219.1 0.8 7.64
and 238.0 252.5 14.5 1.07
incl. 238.0 242.3 4.3 2.48
SR-009 109.0 121.5 12.5 1.09
incl. 115.4 115.8 0.4 13.10
SR-010 141.0 161.3 20.3 0.40
and 172.5 176.1 3.6 0.66
SR-011 80.2 139.1 58.9 1.00
incl. 112.0 117.1 5.1 5.37
incl. 138.0 139.1 1.1 8.75
SR-012 191.0 207.0 16.0 0.25
SR-013 119.8 155.0 35.2 0.79
incl. 139.0 139.5 0.5 18.90
SR-015 179.0 194.1 15.1 2.51
incl. 181.9 185.0 3.2 3.69
incl. 190.5 194.1 3.7 6.62
SR-016 56.0 110.0 54.0 1.01
incl. 83.1 90.8 7.8 5.25
SR-017 85.0 96.4 11.4 2.19
incl. 94.0 94.9 0.9 20.30
SR-018 104.5 109.5 5.0 0.79
and 120.0 124.5 4.5 0.65
and 228.0 231.0 3.0 19.11
incl. 229.2 230.2 1.0 57.30
SR-019 78.9 83.0 4.1 2.62
incl. 80.8 81.3 0.5 17.40

Table 2 - Drill Hole Specifications

Hole Easting Northing Elevation (m) Azimuth Dip EOH (m)
SR-001 857600 1223488 2468 180 -50 636
SR-002 856520 1223365 2453 220 -50 409
SR-003 857792 1223457 2450 180 -45 472
SR-004 856514 1223311 2469 180 -45 302
SR-005 857405 1223383 2491 180 -45 310
SR-006 856629 1223214 2467 180 -45 250
SR-007 857416 1223112 2495 180 -45 209
SR-008 856767 1223165 2490 180 -45 315
SR-009 856960 1223267 2520 180 -45 241
SR-010 857227 1223330 2472 180 -45 242
SR-011 857692 1223252 2463 180 -45 353
SR-012 857227 1223330 2472 215 -45 246
SR-013 857602 1223300 2464 180 -45 280
SR-014 856237 1222866 2534 90 -55 401
SR-015 857909 1223295 2481 180 -45 210
SR-016 857434 1223251 2481 180 -45 202
SR-017 856721 1223291 2461 180 -45 167
SR-018 857498 1223281 2500 180 -45 329
SR-019 856285 1223336 2465 180 -45 184
SR-020 856004 1223542 2500 320 -70 443
SR-021 857313 1223269 2510 180 -45 122
SR-022 856004 1223542 2510 180 -45 296
SR-023 857313 1223269 2510 187 -45 194

The South East Sector which hosts the San Ramon shear zone, is only one of four initial targets on the Santa Rosa property (see drill target map). One drill rig has now been relocated to each of the Central and Northwest Sectors.  The Central Sector contains a strong northwest trending magnetic and radiometric anomaly, while the Northwest Sector contains the largest concentration of historic workings.  Five holes have been drilled to date with assays pending.

Quality Control and Assurance

All drill samples were collected with two diamond drill rigs using approximately one metre sample intervals and following standard industry practice.  Samples were prepped and screened by Acme Analytical Laboratories in Medellin,Colombia for metallic fire assay and multi-element IC-MS analysis in Santiago, Chile.  Gold values were determined by fire assay of a 30g charge with an AA finish, or if over 10 g/t Au, were re-assayed and completed with a gravimetric finish.  QC/QA included the insertion and continual monitoring of standards and blanks into 10% of the sample stream batches, along with check assays conducted at alternate accredited laboratories.

The scientific and technical information contained in this news release has been reviewed by Rob Pease P.Geo., who is a "Qualified Person" as defined under National Instrument 43-101. 

About Red Eagle Mining Corporation

Red Eagle Mining Corporation is a well-financed Colombian gold exploration and development company with an experienced exploration and management team. Red Eagle Mining is currently drilling two properties in Colombia, Santa Rosa (20,000m) and Pavo Real (5,000m).  Santa Rosa is an intrusive hosted structurally-controlled quartz stockwork system within the prolific Cretaceous Antioquia Batholith.  Gold mining within the brownfield Santa Rosa project pre-dates the 16th century when an estimated 30 million tonnes were mined.  Santa Rosa is located 70km north of Medellin near the town of Santa Rosa de Osos in a region characterized by gently rolling hills.  The project is well served by existing transportation and power infrastructure and a skilled workforce.  Santa Rosa is also located some 50km west of AngloGold Ashanti's Gramalote gold deposit (74.375 million tonnes grading 1 g/t Au for a total of 2.39 million ounces).  Pavo Real is a sedimentary hosted gold system located within the Mid-Cauca gold belt which is host to numerous porphyry and epithermal gold deposits.

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.

 

Image with caption: "Figure 1: Santa Rosa Phase 1 Drill Hole Plan (CNW Group/Red Eagle Mining Corporation)". Image available at: http://photos.newswire.ca/images/download/20120117_C4468_PHOTO_EN_8989.jpg

Image with caption: "Figure 2: Santa Rosa Property Cross Section A-A' including SR-001, SR-011 and SR-013 (CNW Group/Red Eagle Mining Corporation)". Image available at: http://photos.newswire.ca/images/download/20120117_C4468_PHOTO_EN_8987.jpg

Image with caption: "Figure 3: Santa Rosa Property San Ramon Shear Zone Schematic Long Section (CNW Group/Red Eagle Mining Corporation)". Image available at: http://photos.newswire.ca/images/download/20120117_C4468_PHOTO_EN_8988.jpg

SOURCE Red Eagle Mining Corporation

For further information:

on Red Eagle Mining please refer to our website www.redeaglemining.com, contact Ian Slater, Chief Executive Officer or contact:

Kevin Arias
Manager Corporate Communications
arias@redeaglemining.com
+1 778 372 2556

James Beesley
Sequoia Partners, Investor Relations
james@sequoiapartners.ca
+1 604 682 4600, +1 855 682 5888 toll free


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