Press Release Source: Golden Eagle International Inc.
Golden Eagle Announces Results of Highly Successful Fourth Quarter
Tuesday January 7, 9:41 am ET
Projects Profitability Through Major Production Expansion
SALT LAKE CITY--(BUSINESS WIRE)--Jan. 7, 2002--Golden Eagle International Inc. (OTCBB: MYNG - News) announced today that its Cangalli, Bolivia gold mine surpassed all of its production goals for the fourth quarter, ended Dec. 31, 2002. The company doubled its plant capacity from 1,000 tons per day to 2,000 tons per day. Golden Eagle's mine also processed 92,700 tons of ore and recovered 43,847 grams, or 1,410 troy ounces, of gold. The gold had a gross value of $468,120 based on prevailing prices during the quarter, and without the allocation of costs. Gold grades recovered to date have been .946 grams per cubic meter, or .473 grams per ton. These grades are 89% higher than target grades used for project modeling, and are consistent within a relatively tight range.
"We are extremely pleased with the performance of our operation in its start-up phase," stated Ronald Atwood, Ph.D., Golden Eagle's vice president for development, from the company's field offices in Cangalli. "Our operations team met all of the challenges, and even managed to double production capacity in the first quarter of operation," Atwood concluded.
Atwood is in Cangalli finalizing the installation of a highly cost-efficient conveyor system in the company's interior mine. Once block-caving operations commence in January, Golden Eagle will suspend more expensive open pit operations, and expects to process additional ore that will contain material from paystreaks in its deposit, which were confirmed during exploration to host significantly higher grades in gold.
Due to start-up and infrastructure costs, as well as other expenses associated with the commencement of mining operations, the company did not expect its initial phase operations to be profitable. However, first phase production has been very indicative of future profitability once operations can be sufficiently expanded. Golden Eagle projects that by March 2003, it will complete plant and mine expansion to be able to process 3,500 tons per day from its interior mine block caving operation. This expansion requires additional investment by the company of $600,000, which Golden Eagle currently has committed in reserve from accredited investors. Once the Cangalli mine reaches 3,500 tons per day, the company projects that its operations will be profitable.
"It will be a red letter day when our Cangalli operation is profitable and fully self-sustaining," stated Terry C. Turner, Golden Eagle's president and CEO. "We will then be on our way to our ultimate goal, pending final financing, of processing 11,000 tons per day, and producing gold at $75 or less per ounce."
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Golden Eagle International Inc. is a gold exploration and mining company located in Salt Lake City 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, an area estimated to have produced 32 million ounces of gold in its known history, located in Western Bolivia; and continuing exploration on 125,000 acres in Eastern Bolivia's Precambrian Shield. Golden Eagle is a mining company with a social conscience, having supported many humanitarian programs at its mine site. For the past six years, the company has provided the only hospital, doctor and nurse in Cangalli. Golden Eagle also has provided for the educational needs of the students in the area. The company highly recommends that you review its disclosures, risk statements, previous press releases, annual reports, quarterly reports and current reports found at its Web site: www.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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Contact:
Golden Eagle International Inc., Salt Lake City
Sabrina Martinez, 801/619-9320 (Investor Relations)
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Source: Golden Eagle International Inc.
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