March 2017 Operating Results and Outlook The operation continues to improve...
Mill
The processing facility commissioning is complete and exceeding design throughput with the capability to process up to 1,200 tonnes per day. The high voltage transmission line construction is complete and energized, connecting the project to the national electrical grid. The dry waste management facility is complete with filtered tailings being dry stacked. Gold recoveries have reached 93% and are on track to the design rate of 96%.
March 2017 Operating Results and Outlook
23,666 tonnes of ore were processed during March (760 tonnes per day). Higher grade ore was blended with lower grade stockpiles to ensure operating efficiency throughout the month. 1,758 ounces of gold were produced during March.
Underground production crews continue to build on their expertise and efficiency. Production rates and grade continue to increase as the underground team adjusts to more controlled stoping methods and additional production faces open up. The blending of lower grade stockpiles will cease as production rates increase.
Red Eagle Mining declared commercial production at the end of Q1 2017 and expects to advance to positive cash flows from operations in Q2. Production guidance is 35,000 to 40,000 ounces of gold for 2017 and 60,000 to 70,000 ounces of gold for 2018.
Exploration drilling is currently underway testing the eastern extent of the San Ramon Gold Deposit and multiple targets approximately 3 kilometres to the west of the processing facility.