slater

RD CEO Ian Slater (Company)

Read Eagle's PEA is out, implying a NPV of $153 million. Here are some highlights:

-- Assuming a long-term forecast gold price of $1,300/ounce gold ("Base Case") pre-tax Net Present Value (5%) is $153 million, Internal Rate of Return is 47% and payback is estimated at 1.4 years;

-- Underground resources outlined in the PEA contain a portion of the resources estimated on September 10, 2013 (see below) and include Measured and Indicated Mineral Resources of 446,000 ounces of gold (2.7 million tonnes grading 5.10 grams gold per tonne) and Inferred Mineral Resources of 111,000 ounces of gold (0.8 million tonnes grading 4.16 grams gold per tonne);

-- Average annual production of 51,000 ounces of gold over 10 years;

-- Project capital costs, incl. contingencies, of $84 million plus $7 million of recoverable VAT; and

-- Average cash costs of $540/ounce.

Two institutional investors, Appian Capital and Liberty Metals and Mining, are believers in the project.

Questions on the market's mind include:

1) Does San Ramon need to get built now?

2) Can RD's people pull it off?

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News release: Red Eagle Mining Completes Preliminary Economic Assessment for the San Ramon Gold Deposit