Santa Rosa Gold Project
The 100% owned 10,000 hectare Santa Rosa Gold Project is an intrusive hosted structurally-controlled quartz stockwork system located within the prolific Antioquia Batholith near the town of Santa Rosa de Osos and lies 70 kilometres to the north of Medellin. Gold mining within the Santa Rosa Gold Project area pre-dates the 17th century when an estimated 30 million tonnes were mined.
San Ramon Gold Mine
The San Ramon Gold Mine (a single shear zone within the Santa Rosa Gold Project) trends east-west, dips 70o to the north, extends over 2 kilometres, is up to 50 metres in width and is mineralized from surface.
- Production of 1000 tonnes per day (tpd) and 2017 estimated production of 70,000oz
- Cash Cost US$596. All-In Sustaining Cost US$647
- Post-tax project economics IRR 53% and payback within 1.3 years (at $1,300 Au)
- Process - SAG mill (P80 125 micron), floatation and CIL circuit
- Straightforward metallurgy with 96% recoveries – Au/Ag dore
- Mining method - Shrinkage stoping with delayed fill
- Dry stacked tailings - 60% used as backfill
- Opportunity to ramp up 2000 tpd with near mine, drill ready regional exploration targets (~2km)
- Excellent infrastructure (water, roads, grid power, local staffing)
The San Ramon Gold Mine deposit is open at strike to the east and also at depth, as reserves have only been delineated to 250m in depth. Deep drill holes (~600m) confirm mineralization, but currently Red Eagle Mining lack the drill density at depth for resource estimation. The San Ramon Gold Mine deposit appears to plunge eastward onto ground recently acquired from AngloGold Ashanti. Exploration success on strike and at depth will increase the mine life at the San Ramon Gold Mine. Should regional exploration targets (i.e. Guacamayas & Canada Rica) prove economic, they will provide the additional tonnage to ramp up the process plant from 1000 tpd to 2000 tpd.
Partnering for Success
Stracon GyM, part of the Graña y Montero Group, provides open cut & underground contract mining, construction and mass earthworks services. Stracon GyM is Red Eagle Mining’s mining services contractor. The underground mining operations are led by a collaborative committee composed of Stracon GyM and Red Eagle Mining senior management. Stracon GyM is also a 15% shareholder of Red Eagle Mining’s equity insuring all parties’ interests are aligned.
Lycopodium is an engineering and project management consultancy which provides a complete range of services for the evaluation, development, implementation and optimization of projects. Lycopodium led process and plant design, feasibility study, detailed engineering, plant construction and EPCM for the San Ramon Gold Mine.
Mine Development Associates (MDA) delivers high quality Geologic and Engineering consulting services to the mining industry for exploration, development and operating projects. MDA has been responsible for Mine Design and Resource & Reserve Estimation for the San Ramon Gold Mine.
Golder Associates Geotechnical, Tailings management and hydrology studies.