MYNG Golden Eagle Finalizes Preparations for Gold Mining Operation: Cheap Power,
Large Volume Among Keys to "Low Cost" Gold
Business Editors/Mining Writers
SALT LAKE CITY--(BUSINESS WIRE)--Sept. 17, 2001--Golden Eagle
International Inc. (OTCBB:MYNG) Monday announced that its Vice
President for Development Ronald L Atwood, Ph.D., together with his
experienced mining team, has completed all primary engineering on
Golden Eagle's 11,000 ton per day gold processing plant and
block-caving mining operation for the company's gold deposit at
Cangalli, Bolivia, in the historic Tipuani Gold Mining District.
Atwood, former chief metallurgist for Newmont Gold, who has been
working on the Cangalli gold project for the past four years, stated:
"Based on our engineering estimates, we project a cost-per-ounce
of gold produced of less than $75, which, if achieved, would be one of
the lowest in the gold industry in my experience.
"Such extraordinary cost projections result from the favorable ore
characteristics of the gold-bearing conglomerate that allow for
extremely inexpensive, high-volume block caving mining techniques, and
the cost-effective use of conveyors for ore delivery and waste
impoundment.
"The engineering team also projects that due to: 1. cheap power,
2. inexpensive labor costs and 3. efficient recovery technologies,
Golden Eagle's project can become an industry leader in low-cost gold
production."
Atwood has also based his engineering and cost projections on five
geological studies on Golden Eagle's gold deposit performed during the
past four years. Two of those studies estimated reserves on Golden
Eagle's property, which management has used strictly for internal
planning purposes.
However, it is important to note that Golden Eagle intends to use
data gathered from its projected production to establish reserves
consistent with Industry Guide 7 of the SEC Regulations, which the
company does not currently claim. On this point, Atwood noted:
"Because the gold in the conglomerate material found in Golden
Eagle's deposit is not homogeneous, we have statistically projected
that a relatively large volume of potential ore must be processed to
demonstrate the deposit's economic viability. Our production plant is,
by far, the most cost-effective method of generating this high-quality
data and income at the same time.
"Our range of projections indicates annual production of between
30,000 and 100,000 ounces of gold, or between $8 million and $25
million in gross sales per annum at today's prices.
"Once these inexpensive volume earthmoving and processing
techniques have been evaluated and refined in the first plant, we
project conservatively that this same type of operation can be
repeated on many different sites within Golden Eagle's landholding of
74,000 acres in the Tipuani Gold Mining District."
Max Staheli, one of the members of Golden Eagle's board of
directors, and the former controller of Barrick Gold Corp. for South
America, is bullish on gold and Golden Eagle's future:
"This is an extremely important moment to bring a low-cost gold
mine online. The falling dollar and global economic meltdown will
compel more investors worldwide to put their money in gold and gold
mining stocks, and the appeal of being a low-cost producer will make
rising gold prices look even better."
On the same point, Douglas Casey, the well-known author of the
International Speculator newsletter, stated in an article in the CBS
MarketWatch of Sept. 12, 2001, that he expects, "a bull market in gold
and mining stocks that will dwarf anything we've seen for literally
decades, with the possible exception of the dot-com bubble."
Golden Eagle is currently seeking to complete the $6 million
financing required to fund its projected operation. "We are in
negotiations with several different parties that may result in debt or
equity financing, or a combination of the two, which together could
provide the necessary funds to complete our project," stated Terry C.
Turner, Golden Eagle's president.
Golden Eagle International Inc. is a gold exploration and mining
company located in Salt Lake City. The company is currently focusing
its efforts on developing its mining rights on 74,000 acres in the
Tipuani Gold Mining District in western Bolivia, and continuing
exploration on 148,000 acres in Bolivia's Precambrian Shield.
For more information about the company call Sabrina Martinez in
Investor Relations, or for media inquiries call Jack McNamara in
Corporate Communications, at 801/619-9320.
Golden Eagle can also be found at its website: www.geii.com, where
management recommends that all shareholders and prospective
shareholders review its Annual Reports on Form 10-KSB, Quarterly
Reports on Form 10-QSB and Current Reports on Form 8-K.
Forward-Looking Statements and Disclosure of Risk
The future conduct of Golden Eagle's business and its response to
issues raised by third parties are dependent upon a number of factors,
and there can be no assurance that Golden Eagle will be able to
conduct its operations as contemplated.
Certain statements contained in this release using the terms
"may," "expects to," "projects," "can become" and other terms denoting
future possibilities, as well as range projections on possible gross
sales and production figures, are forward-looking statements.
The accuracy of these statements cannot be guaranteed as they are
subject to a variety of risks that are beyond Golden Eagle's ability
to predict or control and which may cause actual results to differ
materially from the projections or estimates contained herein.
These risks include, but are not limited to, the risks described
in the above press release; those risks set out in Golden Eagle's
disclosure documents and its annual, quarterly and current reports
filed with the SEC; and the other risks associated with start-up
mineral exploration operations with insufficient liquidity, negative
working capital, and no historical profitability.
Golden Eagle disclaims any obligation to update any
forward-looking statement made herein.
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CONTACT: Golden Eagle International Inc., Salt Lake City
Sabrina Martinez, 801/619-9320 (Investor Relations)
Jack McNamara, 801/619-9320 (Media)
KEYWORD: UTAH INTERNATIONAL LATIN AMERICA
INDUSTRY KEYWORD: MINING/METALS
SOURCE: Golden Eagle International Inc.
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