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Golden Eagle Announces Start-Up of More Cost-Effective Underground Block Caving at Cangalli Gold Mine
2/11/2003 9:11:00 AM
SALT LAKE CITY, Feb 11, 2003 (BUSINESS WIRE) -- Golden Eagle International Inc. (MYNG) announced today that its Cangalli gold mine has converted from open pit mining to more cost-effective conal subsidence block caving. The operation, which uses conveyors to transport ore from the mine to the processing plant, is designed to process 2,000 tons per day of gold bearing ore.
"We anticipate that this conversion to conal subsidence block caving will make our mine much more cost-effective and lower our cost per ounce," stated Giovani Viscarra, Golden Eagle's mine superintendent. "Others have proven this to be an efficient mining method, and our whole team is excited to be involved with such innovative techniques."
Although the region surrounding the Cangalli gold mine was not involved, nationwide labor and farmer protests during the month of January, as well as a landslide on the road between the towns of Guanay and Cangalli, affected the arrival of some essential components for the new operation, delaying the block caving start-up over the past 10 days. However, the Bolivian government has settled the protests, and the landslide has been cleared by the local federation of gold mining cooperatives. The company anticipates that these nationwide labor and farmer protests are resolved and will not significantly impact the company's operations in the future.
"Starting up block caving is another important milestone along the road to our ultimate goal of processing 11,000 tons per day at our Cangalli gold mine," commented Terry C. Turner, Golden Eagle's president and CEO. "Once processing at that level, we project that our cost per ounce of gold produced will drop significantly. We believe that we can make a niche for ourselves as one of the industry's low-cost producers."
The company also reported its production numbers for January 2003. Due to its operation being down for a period of 10 days during the conversion from open pit mining and processing to its conal subsidence block caving, the Cangalli plant processed 40,100 tons of ore, with an average grade of .804 grams per cubic meter, or .402 grams per ton, for a total gold production of 16,120 grams, or 518 troy ounces.
Golden Eagle expects its block caving operation to average in more ore from several of the 35 higher-grade paystreaks that were confirmed during its exploration phase.
The production results from the Cangalli gold mine for January 2003, as well as the company's projections and estimates for the future, were covered in an interview of Turner by CEOcast.com, a leading Internet financial portal. The streaming audio of that interview is available at www.CEOcast.com.
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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, Bolivia. Golden Eagle also has provided for the educational needs of the students in the area, and many welfare needs in the community. 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.
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, or in Turner's interview with CEOcast.com, 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.
Golden Eagle International Inc., Salt Lake City
Sabrina Martinez, 801/619-9320 (Investor Relations)
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