Red Eagle Mining Corp. said April 10 that its San Ramon gold mine in Colombia achieved commercial production March 31.
The mine produced 1,758 ounces of gold from processing 23,666 tonnes of ore in March, and the company expects the operations to advance to positive cash flows in the second quarter, though exploration drilling is still underway to test the eastern extent of the San Ramon deposit and multiple targets about 3 kilometers west of the processing facility.
Underground development continues to advance well, and commissioning of the processing facility is complete, exceeding design throughput with the capability to process up to 1,200 tonnes per day.
Red Eagle expects to produce 35,000 to 40,000 ounces of gold in 2017 and 60,000 to 70,000 ounces of gold in 2018. The miner's 2016 net loss increased to C$9.2 million from C$6.7 million in 2015, primarily due to increased expenses associated with the ramp-up of the San Ramon mine and mill.
Meanwhile, Robert Bell retired as Red Eagle's COO but remains a member of the company board.