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The first new mine into production [in Colombia] is likely to be a more modest affair [than Continental Gold], and that could be Red Eagle Mining’s (TSXV: RD) San Ramon deposit at its Santa Rosa project, also in Antioquia … A Preliminary Economic Assessment (PEA) will follow [a maiden resource estimate] in 1Q13 and then RD plans to start permitting to build a mine … it is already speaking with groups about project financing. RD could go straight into a production decision from the PEA to extract the near surface mineralization contained within numerous veins and veinlets that commonly contain an average of 1.2 g/t Au within the oxide cap layer.
It has very good drill results and good intersects, with disseminated mineralization over good intervals and high-grade kickers, and, perhaps best of all, it is near surface. If Santa Rosa has enough tonnage to become a mine, it presents an opportunity for a low-cost mining solution.
Red Eagle also has a big drill program going on its own property in San Ramón, a potentially interesting project that I’m also watching. It has just completed two drill holes into the San Ramon vein. They are encouraging, but it’s drilling along the whole strike length, so until we see a long section that provides an idea of what continuity looks like, we’ll just keep watching.