Red Eagle Mining (R.TO) plans to start the San Ramon mill up again in January as it has spent the past few quarters focusing on aggressively developing its underground mine to ensure a sufficient amount of stopes will be opened before the mill will be restarted. Red Eagle now has 18 working attack ramps of which 10 are in production, another 4 are ready to go and a final 4 are in development. That’s positive news as Red Eagle was able to mine almost 10,500 tonnes of ore at an average grade of 6.8 g/t gold in November.
The company now anticipates to have a total stockpile of 21,000 tonnes of ore by the time the mill will be restarted and this stockpile, combined with the higher number of open production faces) should ensure the mill remains running at full capacity (1,000 tonnes per day).
To ensure the company’s working capital position is sufficient to ensure a smooth start-up process, Red Eagle has raised an additional C$5.6M by issuing new units at a price of C$0.35. Each unit consists of one common share and a full warrant, allowing the warrant holder to purchase an additional share of Red Eagle Mining at C$0.50.