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Red Eagle Mining Completes Feasibility Study With 52% IRR
Red Eagle Mining Completes Feasibility Study With 52% IRR.
About this update from Red Eagle Mining Corp
[{"type":"text","content":"\n \n \n Red Eagle Mining Completes Feasibility Study With 52% IRR\n \n \nRed Eagle Mining Completes Feasibility Study With 52% IRR\n \n VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 9, 2014) - Red Eagle Mining Corporation (TSX VENTURE:RD)(OTCQX:RDEMF) is pleased to announce the results from the positive Feasibility Study for the San Ramon deposit on its 100% owned Santa Rosa Gold Project located in Antioquia, Colombia. Highlights include (all amounts in US$):\n \n \n Based on a long-term forecast price of $1,300/ounce gold (\"Base Case\") post-tax Internal Rate of Return is 52% with a payback period of just 1.5 years; \n \n \n \n \n Initial capital costs for the project are $63 million plus $7 million contingency and $4 million of recoverable VAT; \n \n \n \n \n Average cash costs of $600/ounce and all-in sustaining costs of $758/ounce; and \n \n \n \n \n Production in the first two years will average 71,000 ounces of gold per year at an average grade of 6.48 grams gold per tonne. \n \n \n Table 1 - Summary of San Ramon Pre-Tax Economic Results by Gold Price\n \n \n \n Pre-Tax\n Alternative\n Case\n \n Base Case\n \n Alternative\n Case\n \n \n \n Gold Price (ounce)\n $\n 1,100\n \n $\n 1,300\n \n $\n 1,500\n \n \n \n Net Cash Flow\n $\n 98 million\n \n $\n 171 million\n \n $\n 243 million\n \n \n \n Net Present Value (5%)\n $\n 74 million\n \n $\n 135 million\n \n $\n 195 million\n \n \n \n Internal Rate of Return\n \n 39\n %\n \n 62\n %\n \n 82\n %\n \n \n Payback\n \n 1.7 years\n \n \n 1.3 years\n \n \n 1.1 years\n \n \n \n \n Table 2 - Summary of San Ramon Post-Tax Economic Results by Gold Price\n \n \n \n Post-Tax\n Alternative\n Case\n \n Base Case\n \n Alternative\n Case\n \n \n \n Gold Price (ounce)\n $\n 1,100\n \n $\n 1,300\n \n $\n 1,500\n \n \n \n Net Cash Flow\n $\n 77 million\n \n $\n 138 million\n \n $\n 211 million\n \n \n \n Net Present Value (5%)\n $\n 56 million\n \n $\n 108 million\n \n $\n 168 million\n \n \n \n Internal Rate of Return\n \n 32\n %\n \n 52\n %\n \n 74\n %\n \n \n Payback\n \n 1.9 years\n \n \n 1.5 years\n \n \n 1.1 years\n \n \n \n \n The Feasibility Study (\"FS\") was prepared by Lycopodium Minerals Canada Ltd. (\"Lycopodium\") in accordance with the definitions in Canadian National Instrument 43-101 (\"NI 43-101\"). Lycopodium is an international engineering and project management consult...