MYNG Golden Eagle Takes Possession of Historic Gold Deposit
Efforts Re-Doubled to Bring Production Plant On-Line
SALT LAKE CITY--(BUSINESS WIRE)--July 9, 2002--Golden Eagle International, Inc. (OTCBB:MYNG - News) has further consolidated its land position in the historic Tipuani Gold Mining District following the Company's acquisition of a 100% interest in the original Cangalli gold concessions, and the elimination of an 18% royalty, announced in Golden Eagle's press release dated July 3, 2002.
Golden Eagle announced today that its Mine Superintendent, Giovani Viscarra, a geologist who has spent the past 18 years studying the Tipuani Gold District, and his operations team, in a milestone ceremony in Cangalli, Bolivia, have formally taken possession of the historic Cangalli gold deposit purchased by the Company on Tuesday, July 2, 2002. Viscarra indicated: "It feels good to be walking on Golden Eagle's own ground. I can look up from the Cangalli Township and see hillsides where our teams of geologists have spent countless hours over the past several years sampling the conglomerate material in the Paleo-Tipuani River channel for its gold content. From those same hillsides, Spanish and Portuguese expeditionary forces fired muskets at each other in battles in the 1500s to determine who would own this property and have the right to mine it. Now, Golden Eagle does."
The Tipuani Gold Mining District has produced 32 million ounces of gold in its known history since the Sixteenth Century, and Golden Eagle's acquisition of 5,125 acres on July 2, 2002, brought its total landholding in this District to over 74,000 acres. All 74,000 acres are now free of any royalty, even though the Company must pay $0.40 per acre per year to the Bolivian government to maintain the mining concession rights in perpetuity. Although the Bolivian Mining Code provides for an absolute priority for mining rights on any concession granted by the Bolivian government, Golden Eagle's property acquired from the United Cangalli Cooperative is completely free of any disputed surface uses.
The President of the United Cangalli Gold Mining Cooperative, Ltd., Benjamin Duran, observed: "We are happy to become partners with our fellow shareholders in Golden Eagle. The sale of our property for a partial cash payment gives us a current, needed economic boost in difficult times in Bolivia. But it is the partial payment in Golden Eagle shares that creates a new social model here in Bolivia and gives us a future hope for real growth as Golden Eagle grows."
The Company's Vice President for Development, Ronald Atwood, Ph.D., commented on Golden Eagle's plant construction progress: "We are re-doubling our efforts to ensure that we can bring our first-phase 1,000-tons-per-day production plant on-line in September 2002 with our available capital resources. Now that the Coop property acquisition is completed, we have received assurances that our environmental permits will be granted well prior to our projected start-up. We have previously purchased and sent to Bolivia a number of components of our plant, such as a Knelson Concentrator from Vancouver, British Columbia, for fine gold recovery; and a Lynatex Separator from Tennessee, to help address the problem of sticky clays found in our deposit. Certain specialized pumps and other equipment, such as a needed high-volume compressor, that we could not find in Bolivia have been purchased in the United States and are en route to Bolivia at this moment. We project that this first-phase plant at Cueva Playa will demonstrate the economic viability of the Cangalli conglomerate ore, and will allow the firm confirmation of previous estimates of gold resources on our property. Our current plan is that once these resources have been confirmed, we will expand up to our full-scale plant of 11,000 tons per day as our funding permits. The Company's long-term projected goal is to construct a number of these plants on potentially viable sites that we believe can be identified on our property. This first operation will add to our knowledge about our ore and will allow for more efficient development, mining and processing. Such long-term goals are, of course, contingent on significant funding and the demonstrated economic viability of Golden Eagle's initial Cueva Playa operation."
Golden Eagle International, Inc. is a gold exploration and mining company located in Salt Lake City, Utah, and La Paz, Bolivia. 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 125,000 acres in Eastern Bolivia's Precambrian Shield. While the Company has received geological reports that estimate significant gold resources on its properties in the Tipuani Gold Mining District, it does not claim estimated gold reserves on any of its properties in accordance with SEC Industry Guide 7. In addition, the Company highly recommends that all shareholders and prospective shareholders should review its disclosures, risk statements, previous press releases, Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on Form 8-K, found at its website: www.geii.com.
For more information about the Company, call Sabrina Martinez in Investor Relations at 801/619-9320. Media inquires should be directed to Jack McNamara at 801/619-9320.
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," "estimates," "plans," and other terms denoting future possibilities, 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; 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 (Investor Relations)
Jack McNamara (Media)
801/619-9320 |
