Golden Eagle Reports First Production Results; Gold Grades Continue to Increase
SALT LAKE CITY, Nov. 7 /PRNewswire-FirstCall/ -- Golden Eagle
International, Inc. (OTC Bulletin Board: MYNG) announced today the results of
its first full month of production from its Cueva Playa gold operation in
Cangalli, Bolivia. The operation processed 10,640 tons of ore in this period,
with an average gold grade of 1.108 grams per cubic meter, or .554 grams per
ton.
"We are genuinely excited that our gold grades keep improving despite the
fact that we are currently mining surface conglomerate material and have not
processed any ore from the several richer pay streaks that run through our
deposit. We are also very pleased with our operating team's progress as we
approach sustained full capacity production in our processing plant during
this shake-out period," stated Terry C. Turner, Golden Eagle's President and
CEO. "What is significant to us is that these increasing grades are double the
grades that we used to build our models and projections. Twice the grade
obviously means twice the revenue from gross sales."
The Company's Cueva Playa operation averaged 34% of production capacity
during October 2002, its first month in its start-up phase. However, on the
last production day of the period, the operation reached 1,104 tons, or 110%
of projected capacity. The Company estimates that the operation will reach its
sustained full capacity of 1,000 tons per day during the month of November.
Gold sales in this first month from the Cueva Playa operation have been
averaging $320 per ounce ($10.29 per gram).
In addition, Golden Eagle is in the process of finishing the installation
of highly-efficient conveyors in its interior mine, the completion of which is
expected to double the capacity to 2,000 tons per day in the month of
December. The Company believes that this increased capacity, coupled with
averaging in ore from the higher grade pay streaks through its block caving
operation, will result in a substantial increase in revenue toward the end of
the fourth quarter of 2002.
In its final phase, Golden Eagle plans to expand its Cueva Playa operation
to 11,000 tons per day. Once this production level is reached, the Company
projects that its cost per ounce of gold produced will be less than $75.
Issues affecting production at Cueva Playa during October 2002 were:
* Early torrential rains that washed out 200 meters of road between the
mine and the township of Cangalli. That section of road has been
repaired and additional improvements have been made to avoid problems in
the future.
* Terraces in the Company's temporary open pit were washed out by the same
rains. Additional engineering and improved supporting earthworks, as
well as improved drainage, have been employed to solve the problem.
* A rented track excavator had various mechanical problems that slowed
production. The Company has purchased a Caterpillar 235 track excavator
to replace the rental. The replacement excavator has a 12 meter reach
and a 2 cubic meter capacity bucket, which should substantially
contribute to more efficient loading of ore in the mine.
"I am very pleased with our first month's production results," commented
Ronald Atwood, Ph.D., Golden Eagle Vice President for Development, and former
Chief Metallurgist for Newmont Gold. "Our operating team is going through the
learning curve more rapidly than any group that I have worked with in the
past. This crew, most of which has years of experience working in the Tipuani
Gold District, has responded to the weather and equipment challenges in such a
way that we are now prepared to maintain full capacity operation during the
rainy season. We're right on track."
"We are making great progress for being in our shake-out phase," said Max
Staheli, a Golden Eagle Board Member, and former Controller of Barrick Gold
Corporation for South America. "I have helped bring in large gold mines
before, and the standard time to reach sustained production capacity is
usually 3 to 4 months. Our team in Bolivia is well ahead of schedule on that
count."
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 historic Tipuani Gold Mining District in Western Bolivia that has
produced an estimated 32 million ounces in its known history, and continuing
exploration on 125,000 acres in Eastern Bolivia's Precambrian Shield. This
press release does not contain all of the information about Golden Eagle, and
the Company highly recommends that no investment decision should be made
without reviewing its disclosures, risk statements, previous press releases,
annual reports, quarterly reports, and current reports found at its website:
geii.com.
For more information about the Company, call Sabrina Martinez in Investor
Relations 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 in accordance
with the Private Securities Litigation Reform Act of 1995. 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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SOURCE Golden Eagle International, Inc.
-0- 11/07/2002
/CONTACT: Sabrina Martinez in Investor Relations, +1-801-619-9320, for
Golden Eagle International, Inc./
/Web site: geii.com
(MYNG)
CO: Golden Eagle International, Inc.
ST: Utah, Bolivia
IN: MNG OTC
SU:
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