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Summary

  • Red Eagle Mining has received the mine plan approval, which is the last but one permit needed to start mining at San Ramon.
  • This was expected, as a rejection of the mine plan would have been tough to swallow.
  • The investment thesis remains standing, Red Eagle’s San Ramon mine will be a very profitable operation with very low operating costs.

Red Eagle Mining (OTCQX:RDEMF) has announced it has received the approval of the mining technical plan from the province of Antioquia in Colombia. This approval from the local secretary of mines is very important as it's the final approval subject to receiving the environmental mining license. As Red Eagle submitted the documentation in November of last year, it's once again proven that the Colombian bureaucratic machine is going very slow, but in the end they get the work done and have (finally) approved the mine plan.

Red Eagle is now awaiting the environmental approval based on the plan it submitted in February of this year. As various government entities have previously signed off on all other matters, this is the only outstanding permit which hasn't been received yet. As soon as the environmental license will have been approved, Red Eagle can theoretically start the construction works at the San Ramon project and commence its mining activities.

This is a tremendous step forward, as not a lot of mines have been permitted in Colombia recently. The fact that this is an underground mine with minimal surface disturbance obviously puts this project in a better position to be permitted than large-scale heap leach operations. I'm anxiously awaiting the outcome of the definitive feasibility study and the environmental permit which will allow the company to go out and find financiers for this project.

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Source: Update: Red Eagle Mining Receives Mine Plan Approval