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 70 kilometres north of Medellin. AngloGold Ashanti's Gramalote project is located to the east and Continental's Buritica project to the west. The project is easily accessible by road and infrastructure is readily available. The topography is gently undulating hills. 

Gold mining within the Santa Rosa project pre-dates the 17th century when an estimated 30 million tonnes were mined.  The San Ramon gold deposit (a single shear zone within the Santa Rosa project) trends east-west, dips 70o to the north, extends over 2 kilometres, is up to 50 metres in width and is mineralised from surface.  45,000 metres have been drilled to date to a vertical depth of over 600 metres with mineralisation remaining open at depth. Meanwhile reserves have been delineated to a depth of only 250 metres.

The high potassic alteration, anomalous geochemistry and drill results all confirm and are coincident with the historic workings.  Other than the San Ramon deposit, numerous additional drill targets have been identified within the Santa Rosa gold project.


Geology within the Santa Rosa gold project is dominated by hornblende-biotite diorite and quartz diorite of the Antioquia batholith. The batholith is a calc-alkaline, plutonic intrusive complex belonging to an early- to mid-Cretaceous magmatic arc. Basement geology is a complex elongated mosaic of Palaeozoic and younger autochthonous and allochthonous terranes that were accreted to the South American continent and subjected to transpressional tectonics and episodic subduction-related magmatism. Mineralisation is contained within numerous mesothermal veins and stockworks structurally related to east-west and north-north-west corridors.

Recent Exploration

Exploration to date has entailed:

  • Detailed structural and geological mapping of over 1,700 near surface underground adits within the oxidised saprolite and over a hundred historic open cut hydraulic workings.
  • Surface geological mapping.
  • Bulldozer and hand trenching.
  • Collection and analysis of thousands of adit and trench channel samples.
  • Helicopter-borne magnetic and radiometric surveys.
  • Detailed Mobile Metal Ion (MMI) geochemical sampling programme.
  • 45,000 metres of core drilling to a vertical depth of over 600 metres.
  • Bulk metallurgical testwork.
  • Resource Estimate.
  • Environmental baseline studies.
  • Environmental Impact Assessment.
  • Preliminary Economic Assessment.

Feasibility Study

The October 2014 Feasibility Study outlines a 1,000 tonne per day operation producing an average annual production of 50,000 ounces over an eight year mine life.  Initial capital costs are $74 million.  Cash costs are $596/ounce or $84/tonne.

Reserves are 2,424,000 tonnes at a grade of 5.2 g/t gold for 405,000 ounces.

San Ramon is an underground mine using conventional shrinkage stoping mining methods with delayed backfill.  Processing incorporates single-stage crushing, SAG milling and floatation with concentrate re-grinding followed by conventional carbon-in-leach processing the combined float tails and reground concentrate to produce gold dore with 96% recoveries.

Assuming a long-term forecast gold price of $1,300/ounce gold: post-tax Net Present Value (5%) is $104 million, Internal Rate of Return is 53% and payback is 1.3 years.

Major equipment and layout has been designed with built-in capacity to accommodate an expansion to double the throughput rates without disrupting production.

Current Work Program

Construction has commenced at the fully financed and fully permitted San Ramon Gold Mine with production projected for H2 2016.  Once constructed San Ramon will be the largest gold mine in Colombia and the first gold mine operating under modern environmental permitting legislation.

All technical information has been reviewed and approved by Red Eagle Mining's Vice President of Exploration, Jeff Toohey P. Eng., who is a Qualified Person as defined under NI 43-101.