Red Eagle Mining Corp.

Red Eagle Mining is a well-financed gold exploration and development corporation 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 100 square kilometre historic Santa Rosa Gold Project located in the Antioquia Batholith. Construction is underway at the fully permitted and fully financed San Ramon Gold Mine with production expected to commence during the second half of 2016.

Expert Comments:

Thibaut Lepouttre, Caesars Report (1/21/16)
"Red Eagle Mining Corp. announced it has received 17.55M new shares of CB Gold. . .everything remains pretty much on schedule to allow Red Eagle to make the transition from a developer to a gold producer by Q3/15. If the Colombian Peso remains this weak, the company might have some positive surprises for the market."

Bob Moriarty, 321 Gold (12/23/15)
"Red Eagle Mining Corp.'s Santa Rosa mine will open in the second half of 2016 with cash costs of under $700/oz and an IRR of 53%. . .the Santa Rosa district is going to be a lot bigger than [management] are suggesting. There is a lot of gold there. They will build the mine and mill first and then expand like crazy. With a market cap of about $45M, the company has a lot of potential and will be one of the leaders in the new bull phase. . .you are getting an excellent story with brilliant management."

Red Eagle Mining Corp. is one of my top five picks for 2016. There will probably be an amicable solution to the CB Gold takeover in the next 12–24 months. Red Eagle will likely have to acquire the remaining shares of CB Gold in a private transaction with Batero. . .the impact of the weak Colombian peso on Red Eagle will be huge. The U.S. dollar versus the Colombian peso exchange rate is about 3,150:1. Red Eagle based its feasibility study on an exchange rate of 1,900:1, so it gets about 60–65% more pesos for each dollar. Some 30 or 40% of the company's operating expenses will be paid for in Colombian pesos and this means Red Eagle could shave off about 50% of those expenses, which could reduce the all-in sustaining costs by at least $100/oz. That would be an impact of $4–5M per year based on the 40–45 Koz per year production rate. My hope is that the company will try to lock in at least a part of its currency exposure because it's prudent to hedge against the Colombian peso while it can get value." read more >

"At Red Eagle Mining Corp.'s San Ramon gold project, the air is full of sounds of the fleet of yellow machinery shifting earth, and very soon contractor STRACON GyM will start to excavate the portal for a 4.5m by 5m decline to access the ore body. The decline will hit mineral after 300m and the main mineralized body after 1 kilometer, with exploitation due to commence in the third quarter of 2016. The beneficiation plant will comprise six column-in-leach tanks, a small flotation circuit and a concentrate regrind circuit. From the fourth quarter of 2016, Red Eagle will start producing 5,000 ounces a month of gold in dore comprising 57% silver and 43% gold. "The equipment purchases and contracts are completed, the earthworks are progressing and very soon we will start pouring concrete. The steel for the concrete has arrived from Brazil and the most important concrete pours will occur before Christmas to put in the foundations for the mill, the leach tank, the filtration plant and the crusher," COO Bob Bell told Mining Journal." read more >

"Red Eagle Mining Corp. got its San Ramon gold project permitted and the company has since broken ground on construction. . .Red Eagle should have its San Ramon mine in production within the next 12–18 months. That will be a key step to show that it is possible to explore, permit, develop and bring a gold mine into production in Colombia. . .for permitting, Red Eagle had the advantage that the regional environmental authority, Corantioquia, had an office in the town where its project is based. . .for Red Eagle, it meant that it could have a much closer working relationship with the environmental authority; it's much easier for officials to see things progress. . .Red Eagle has a good group of people locally and good management, which is essential. Management did a great job engaging with the community and the different stakeholders. It has gone out of its way to make stakeholders understand the implications of San Ramon and its essential benefits. At the end of the day, it should be a relatively low-impact underground mine. It's pretty much the first company to go through Colombia's permitting process in modern times. . .while there has been a lot of exploration activity in Colombia, not many projects have advanced to the resource definition stage. Red Eagle's San Ramon is one." read more >

"Red Eagle Mining Corp. owns the Santa Rosa deposit near Medellin; it is the first mine that's been permitted in Colombia in over 20 years, a significant announcement. The country is in construction of an extremely high-grade, underground and robust economic mine that is coming into production over the next 12–18 months. That is an exciting project that should be on the radar of investors. . .Red Eagle has outperformed the juniors. It's still holding up there near its 52-week highs, but it hasn't broken out. Nothing in the entire sector on the development side has been breaking out yet. But this is one to watch." read more >

More Expert Comments

Experts Following This Company

Ash Guglani, Analyst – Salman Partners
Jeb Handwerger, Author Gold Stock Trades
Paul Harris – Colombia Gold Letter, Trident Gold Corp
Tommy Humphreys, Author – CEO.CA
Thibaut Lepouttre, Editor Caesars Report
Bob Moriarty, Author 321 Energy , 321 Gold
Björn Paffrath, Director – Stabilitas-Fonds

The information provided above is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.
Investing Highlights
Gold production in Colombia in 2016
Three years from discovery hole to Feasbility Study
53% IRR
catalyst Calendar
Production to Commence