DENVER--(BUSINESS WIRE)--August 2, 1999--Golden Eagle
International, Inc. (Pink Sheets:MYNG) announced today that it has
received a new metallurgical report relating to its Cangalli, Bolivia
gold deposit from Ronald L. Atwood, Ph.D., a metallurgical consultant
and former chief metallurgist for Newmont Mining.
Dr. Atwood is also a member of Golden Eagle's technical advisory
board. Dr. Atwood expressed his opinion in the report that operating
costs at the Cangalli site (including general and administrative costs
and an allocable share of corporate overhead) will range from $31 to
$123 per ounce of gold produced, depending on the feed grade and
tonnage being mined. Dr. Atwood also expressed his opinion that the
difficulty other consultants have identified in recovering fine gold
in Cangalli can be overcome with certain specified technology and
equipment. Dr. Atwood's report, "Report of Investigation on the
Cangalli, Bolivia Gold Deposit -- Recovery of Fine Gold with a Mine
Plan and Economic Projections," is the result of his field work on
Golden Eagle's Cangalli site, as well as bench testing and laboratory
analysis. Dr. Atwood has visited and investigated the Cangalli gold
deposit several times since March 1997. His most recent work was
performed between April and June 1999.
Dr. Atwood's most significant findings reported to Golden Eagle
are in three categories:
-- Fine gold recoveries. Other consultants have raised concerns that
traditional mining and recovery methods used in the Cangalli area
will not result in the recovery of a significant amount of the
"fine gold" known to be present in the deposit. Dr. Atwood stated
in his report, "Based on the work performed, the gold recoveries
in the Chaco area (of the Cangalli gold deposit) can be expected
to be in excess of 95 percent." He further stated, "Through
enhanced acceleration in the centrifugal concentrator systems we
have demonstrated that the historical fine gold losses suffered
in the Cangalli area can be resolved."
-- Cost per ounce of gold produced. Dr. Atwood expressed his opinion
in the report that operating costs at the Cangalli site
(including general and administrative costs and an allocable
share of corporate overhead) will range from $31 to $123 per
ounce of gold produced, depending of the feed grade and tonnage
being mined. (It should be noted that Dr. Atwood's cost per ounce
projections were not based on estimates of resources or reserves.
Dr. Atwood based his projections on information from sampling
data collected on the Cangalli site by other consulting
geologists, geophysicists and mining engineers.)
-- Recommendation regarding operations. Dr. Atwood recommended in
his report that Golden Eagle consider installing a
400-ton-per-hour, 8,800-ton-per-day, mining operation and
recovery plant at the Chaco Playa site. He provided a mine plan
and economic projections for his recommended operation based on
various scenarios. His estimated cost for the plant construction,
mining equipment acquisition, and operating and administrative
costs during the start-up phase was $3 million, but ramping up
operations could begin with a smaller investment. Dr. Atwood
stated that he believes that his recommended mine plan would be
the best and most cost-effective method for creating positive
cash flow for the company, while also gathering a significant
amount of information regarding the Cangalli gold deposit.
Regarding Dr. Atwood's report and recommendations, Golden Eagle's
President, Terry C. Turner, commented, "On the heels of the Behre
Dolbear report confirming the nature of the Cangalli gold deposit, Dr.
Atwood's report provides Golden Eagle with a practical framework for
the future. It is very exciting to read Dr. Atwood's opinion that we
can solve our fine gold losses while creating positive cash flow, and
at the same time generate important, additional sampling data from
production."
Golden Eagle is attempting to raise the financing necessary to
implement certain of Dr. Atwood's recommendations. This will take a
significant amount of investment, however, and at this time Golden
Eagle does not have those sources readily available to it. In
addition, Golden Eagle recognizes the continuing risks inherent in its
operations in Bolivia, including risks that there are insufficient
gold resources for a profitable operation; significant, current
working capital deficits; and other risks inherent in carrying out
mining activities in Latin America.
Golden Eagle International, Inc. is a Denver-based gold mining
and exploration company. The Company is currently focusing its efforts
on developing its mining rights in Cangalli, Bolivia. For more
information about the Company, call Sabrina Martinez at 303/694-6101
or Guy Murrel at 303/581-7760. Media inquires should be directed to
Richard Pinto at 212/688-8599. 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 Periodic Reports on
Form 8-K.
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 press release and Golden Eagle's other reports using the terms
"may", "expects to," 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 periodic 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.
--30--kmw/se*
CONTACT: Golden Eagle International, Inc.
Guy Murrel, 303/581-7760
or
Richard Pinto, 212/688-8599
KEYWORD: COLORADO INTERNATIONAL LATIN AMERICA
INDUSTRY KEYWORD: MINING/METALS
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