Red Eagle Exploration Limited is pleased to announce the acquisition of an additional two exploitation mining concessions totalling 124 hectares in the prolific California-Vetas Gold District located in Santander, Colombia. These two concessions are adjacent to the strategic block of six concessions Red Eagle Exploration recently acquired (news release dated February 15, 2017). The now eight properties, which collectively comprise the California Gold Project, are adjacent to and along strike from concessions which contain La Bodega gold deposit currently being developed by Mubadala Development. The last public NI 43-101 Technical Report for La Bodega was issued by Ventana Gold dated effective November 8, 2010 and reported an Inferred resource of 3.47M ounces of gold.1
Red Eagle Exploration has an option to purchase 100% of two additional exploitation mining concessions for consideration of US $7,493,250 of which 50% is payable in cash and 50% is payable in shares of Red Eagle Exploration. Initial payments of US $62,444 and $62,444 payable in shares of Red Eagle Exploration are due upon closing. The balance of the payments are due over a two year period subsequent to title transfer. An additional payment is due three years from the date of title transfer equivalent to 1.5% of the value of gold and silver Measured and Indicated resources included in a NI 43-101 Technical Report. The transactions are subject to the approval of the TSX Venture Exchange.
About the California Gold Project
The California Gold Project comprises 250 hectares within the prolific California-Vetas Gold District, which also contains the multi-million ounce La Bodega and Angostura gold deposits. Elevation ranges from 2,400 to 2,700 metres above sea level, far below the Paramo boundaries.
California is situated in the Santander Massif of the eastern cordillera of the Andes Mountains. The massif is comprised of Precambrian gneisses, schists, quartzites and migmatites of the Guyana Shield. Intermediate to granitic intrusives of the Santander Plutonic Group were emplaced during a period of uplift in the Jurassic/Triassic era. Porphyry intrusive stocks and dikes in the immediate areas of mineralization may be as young as Tertiary in age. Regional faulting parallels the topographic fabric with the crustal-scale northwest trending Bucaramanga-Santa Marta wrench fault and the northeast trending Rio Cucutilla fault zone defining the principal structural trends.
The gold-silver-copper mineralization in the California Gold Project is part of the same, large mineralizing system localized along a regional northeast-trending fault zone that also hosts the adjacent La Bodega deposit. Mineralization occurs in northeast, northwest and east-west striking, generally steeply north-dipping faulted structures containing high grade veins up to two metres in width. Vein mineralogy includes pyrite, chalcopyrite and sphalerite.
Red Eagle Exploration plans to advance the California Gold Project toward economic feasibility by the delineation of high-grade vein resources exploitable by modern underground mining methods. This work will initially involve compiling existing data, detailed underground mapping of existing mine workings, detailed underground channel sampling, and prioritizing targets for subsequent drifting along with surface and underground diamond drilling as soon as possible.
The California Gold Project is located approximately ten kilometres from Red Eagle Exploration's existing Vetas Gold Project, potentially resulting in operational synergies including processing at a central mill.
The technical information contained in this news release has been reviewed and approved by Red Eagle Exploration's Vice President of Exploration, Jeff Toohey P.Eng., who is a "Qualified Person" as defined under NI 43-101.