Red Eagle Moves to Production
I wrote about Red Eagle back in November of 2014. The stock was $.26 then. Even with the carnage in gold shares, the shares of the company have held up well.
The safest time to buy any mining stock is as they ease into production. Yesterday Red Eagle announced they have commenced construction. The company is fully permitted for production and fully financed. Production is expected to begin in the 2nd half of 2016.
Typically the share price increases as the start of production gets closer. Red Eagle provides some nice numbers for investors. Their 43-101 filed in September of 2014 calls for a 32% after tax IRR at $1100 gold increasing to 52% at $1300 gold and 74% at $1500 gold.
The company suggests that production will be 68,000 ounces the first year and increase to 75,000 the 2nd year. All in sustaining costs are estimated at a tiny $758 per ounce.
The San Ramon gold mine will be the first fully permitted into production mine in Colombia since the country opened up mining 10 years ago. It will also be the biggest gold mine in the country.
Red Eagle is an advertiser and I am biased. I have bought shares in the open market. Please do your own due diligence.
Red Eagle Mining