Red Eagle hits 7 metres grading 41.53 grams gold at Santa Rosa

VANCOUVER — Red Eagle Mining (RD-V) continues to report encouraging infill gold hits from its Santa Rosa project in Colombia.

In the latest round of infill results hole 53 returned a stand-out 7-metre intercept grading 41.53 grams gold per tonne from 204 metres downhole. Other results from the latest round included 11.1 metres grading 1.34 grams gold from 162 metres depth in hole 52 and 4 metres averaging 1.22 grams gold from 371 metres depth in hole 55. Red Eagle estimates true widths are about 70% of the intercepts.

The latest results follow ones the company released in late June, which included hole 45 that hit 35.5 metres grading 2.28 grams gold from 147 metres depth, hole 47 that hit 49 metres averaging 1.08 grams gold from 174 metres depth, and hole 48 that returned 11.1 metres carrying 1.77 grams gold from 180 metres depth.

The late June results also defined the western extent of the structure, with holes 43, 46 and 51 not hitting economic grades. Red Eagle did note, however, that hole 49, which was also drilled to test the western extent, hit 4.8 metres grading 6.14 grams gold from 127 metres. The company stated the hole may indicate that the structure could extend along strike to the west, possibly pinching to narrower widths in places but with higher grades.

Overall, Red Eagle has established that the San Ramon structure at Santa Rosa extends over 1,800 metres east-west, is up to 60 metres wide, and dips 60-70 degrees to the north. The latest results from Santa Rosa are part of a 24-hole, 5,400-metre phase-two drill program, with the company still waiting for assay results on 10 of the holes.

Red Eagle, meanwhile, has already started its 5,000-metre, phase-three program to test the oxide mineralization at the project. The company plans to drill roughly 36 holes to between 80 and 100 metres depth, which will encompass an average of 50 metres of mineralized saprolite from surface, to test the oxide potential. The drilling is targeted to confirm mineralization from surface and will be incorporated into a resource estimate on the San Ramon target by the end of the year.

Further south in Colombia, Red Eagle has reported initial drill results from its Pavo Real project with mixed results. The first-pass program returned 7.1 metres grading 1.54 grams gold from 196 metres depth in hole 3; 1.6 metres carrying 1.82 grams gold from 223 metres in hole 9; 0.5 metre averaging 9.37 grams gold from 100 metres depth, and a spattering of other short, moderately grading gold hits.

The company stated that it is encouraged by the first results from Pavo Real but will be concentrating on its more assured Santa Rosa project given market conditions.  

On news of the latest results Red Eagle’s share price climbed as much as 15¢ before closing up 7¢ or 14% at 57¢ with 248,000 shares traded. The company has 36.2 million shares outstanding.