Red Eagle Mining Intercepts 35.5 Metres at 2.28 Grams Gold Per Tonne at Santa Rosa

Red Eagle Mining Intercepts 35.5 Metres at 2.28 Grams Gold Per Tonne at Santa Rosa

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2012) -Red Eagle Mining Corporation (TSX VENTURE:RD)(OTCQX:RDEMF) is pleased to announce additional assay results received from the recently completed 24 hole, 5,400m phase two core drill program at the San Ramon gold system located within the Santa Rosa gold project in Colombia. Assays have now been received for 10 holes with assays pending on 14 holes (SR-052 to SR-065). The additional results show strong gold mineralisation over significant intervals in core drill holes SR-044, SR-045A, SR-047 and SR-048, with the most significant intercept being in hole SR-045A of 35.5 metres at 2.28 grams gold per tonne. This follows an intercept of 66.9 metres at 3.06 grams gold per tonne in hole SR-042 reported in the news release dated June 13, 2012 (http://redeaglemining.com/news/?pg=1&nyy=2012&nid=35), covering assays on the first two holes of phase two.

Table 1 summarizes significant (+0.20 g/t) uncut gold intercepts from phase two core drill holes SR-041 to SR-051 [see Figure 1 (http://redeaglemining.com/siteFiles/89/files/maps-lg/Stage1_San_Ramon_Dr...) Drill Hole Plan and Figure 2 (http://redeaglemining.com/siteFiles/89/files/maps-lg/SR_SE_Sector_Long_S...) Long Section] of which the latest assays are for holes SR-043 to SR-051. Internal dilution within intercepts is limited to the inclusion of runs of no more than 6m below cut-off.

Table 1 - San Ramon Drill Intercepts (*previously reported)

Hole ID
From (m)
To (m)
Interval (m)
Au (g/t)

SR-041*
68.40
75.40
7.00
1.96

incl.
74.90
75.40
0.50
22.10

 
113.00
147.60
34.60
0.63

incl.
146.50
147.60
1.10
8.35

SR-042*
138.70
205.60
66.90
3.06

incl.
184.00
190.00
6.00
31.85

SR-044
213.90
247.90
34.00
0.71

SR-045A
115.60
117.60
2.00
6.87

 
147.00
182.50
35.50
2.28

incl.
149.90
151.40
1.50
28.26

incl.
173.90
175.80
1.90
14.36

SR-047
147.00
149.00
2.00
0.52

 
162.00
168.00
6.00
0.44

 
174.00
223.00
49.00
1.08

incl.
180.00
181.00
1.00
11.70

incl.
220.00
223.00
3.00
6.10

SR-048
114.80
125.90
11.10
1.77

incl.
116.80
117.80
1.00
14.40

SR-049
127.00
131.80
4.80
6.14

SR-050
88.20
89.20
1.00
1.31

 
95.20
98.60
3.40
1.21

Holes SR-043, SR-046, SR-049 and SR-051 were drilled to test the western extent of the structure and as expected did not return economically significant results. The exception was hole SR-049, which returned an intercept of 4.8m at 6.14 g/t Au, indicating that the structure may extend along strike to the west, possibly pinching to narrower widths in places but with higher grades, which is encouraging for underground mining evaluation below and outside the potential open pit.

"Our drilling at San Ramon continues to deliver confirmation of a robust mineralised system containing numerous high grade gold intercepts and long intervals," comments Ian Slater, Chief Executive Officer. "Assays are pending on another 14 holes from phase two and phase three drilling is continuing through the summer."

The San Ramon structure trends east-west, dips 60°-70° to the north, extends over 1,800m, is up to 60m in width and is exposed at surface. Wide-spaced drilling intercepts from phase one averaged approximately 1.2 g/t Au to a vertical depth of over 250m. The mineralisation extends to surface where channel sampling has also averaged approximately 1 g/t Au. The 2012 work program for San Ramon includes the phase two core drill program (24 holes totaling 5,400m), a phase three core drill program in the near surface oxides over the entire known gold mineralisation which has just commenced (36 holes totaling an estimated 5,000m), preparation of a NI 43-101 resource and a preliminary metallurgical test work programme.

Table 3 - Drill Hole Specifications

Hole
Easting
Northing
Elevation (m)
Azimuth
Dip
EOH (m)

SR-041
857796
1223267
2445
180
-45
178

SR-042
857796
1223267
2455
180
-70
239

SR-043
856191
1223330
2462
na
-90
194

SR-044
857907
1223294
2470
180
-65
290

SR-045A
857694
1223258
2454
180
-75
199

SR-046
856191
1223330
2462
180
-80
162

SR-047
857604
1223297
2450
180
-70
264

SR-048
857918
1223229
2467
180
-45
151

SR-049
856204
1223390
2478
180
-45
148

SR-050
857605
1223231
2464
175
-45
169

SR-051
856204
1223390
2478
180
-75
227

Quality Control and Assurance

All drill samples were collected with two diamond drill rigs using approximately one metre sample intervals and following standard industry practice. Acme Analytical Laboratories prepped and screened samples in Medellin, Colombia and assayed samples in Santiago, Chile. Gold values were determined by fire assay of a 30g charge with an AA finish, or if over 10 g/t Au, were re-assayed and completed with a gravimetric finish. QC/QA included the insertion and continual monitoring of standards and blanks into 10% of the sample stream batches, along with check assays conducted at alternate accredited laboratories.

The scientific and technical information contained in this news release has been reviewed and approved by Michael Johnson, P.Geo., who is a "Qualified Person" as defined under National Instrument 43-101.

About Red Eagle Mining

Red Eagle Mining Corporation is a well-financed Colombian gold exploration and development company with an experienced exploration and management team. Red Eagle Mining is currently exploring two properties in Colombia, Santa Rosa and Pavo Real. Santa Rosa is an intrusive hosted structurally-controlled quartz stockwork system within the prolific Cretaceous Antioquia Batholith. Gold mining within the Santa Rosa project pre-dates the 16th century when an estimated 30 million tonnes were mined. Santa Rosa is located 70km north of Medellin near the town of Santa Rosa de Osos in a region characterized by gently rolling hills and excellent infrastructure. Santa Rosa is also located 50km west of AngloGold Ashanti's Gramalote gold deposit (2.5 million ounce M&I resource grading 0.8 g/t Au) and 60km east of Continental Gold's Buritica gold deposit (630,000 ounce M&I resource grading 17.8 g/t Au). Pavo Real is an extensive project within the Mid-Cauca gold belt containing both a sedimentary hosted gold system and a 15km long copper/gold/silver skarn formation hosting significant high grade brownfield mines. For further information on Red Eagle Mining please refer to our website www.redeaglemining.com or contact Ian Slater, Chief Executive Officer.