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Gold/Mining/Energy : Golden Eagle Int. (MYNG) -- Ignore unavailable to you. Want to Upgrade?

To: Brian N L who wrote (804)	2/12/1998 3:07:00 PM
From: Brian N L	Respond to of 34075

NEWS IS OUT!! Just caught it on the wire at 3:00 pm. est... It was not GE that had the mudslide. Also, a calculation of production of cost per ounce was mentioned. Not too shabby. PMA!!! Brian

To: Brian N L who wrote (804)	2/12/1998 3:08:00 PM
From: --	Read Replies (1) \| Respond to of 34075

GOLDEN EAGLE UPDATES ITS ACTIVITIES AT CANGALLI, BOLIVIA GOLD MINE DENVER, CO, Feb. 12 /CNW/ - Golden Eagle International, Inc. (OTC Bulletin Board: MINE) updated today its activities at its gold mine at Cangalli, Bolivia. The Company's president, Terry C. Turner, noted activities in the following areas: - ''El Nino'': The Company is experiencing the negative impact of the weather phenomenon known as ''El Nino'' which is situated off the coast of Peru in the Pacific Ocean. This cyclical warming of the ocean temperature causes changes in the water and air currents of the region, and in the case of this particular cycle, the world. The Company's mining and exploration efforts have been forced to maintenance levels by torrential rains. Current production from the Cangalli Shaft is running at minimal levels and is providing only operating costs at this time. The township of Tipuani, which is approximately 3 km upriver from the township of Cangalli has experienced devastating flooding which has washed a number of houses downriver. The Company has provided important civic support to the township of Cangalli by using two of its D85 Komatsu Bulldozers to revamp the retaining dyke between the Tipuani River and the Cangalli township. In addition, the small hillside gold mining community of Mocotoro, located 15 km upriver from the Company's mine, experienced a mudslide of catastrophic proportions which killed 40 people and left an unknown number missing. The Mocotoro mudslide has not directly impacted the Company's operations, but is indicative of the intensity of the torrential rains in the region. The Company's management has instructed its local personnel to use the Company's equipment and personnel in assisting rescue efforts at Mocotoro. Mr. Terry C. Turner, the Company's President and CEO, said, ''the Cangalli shaft is not in any danger from mudslides, and other equipment has been secured on-site to assure that neither flooding nor mudslides can adversely impact the Company's equipment. Local mine administration has advised the Company's management that the Cueva Playa area should not be adversely impacted in the long term once the El Nino phenomenon subsides.'' - Fine Gold Recovery Study and Equipment Revamp. Due to the foregoing impacts resulting from ''El Nino'', the Company's fine gold recovery study and equipment revamp has been delayed, but is still underway to the extent weather permits. - Reserve Calculations and Study. Mr. Guido Paravicini, M.A., Eng., the independent geophysicist and mining engineer under contract to the Company for its Reserve Calculation Report, has indicated to Company management that his report should be finished by mid-March. Mr. Paravicini has also been somewhat hampered by the torrential rains experienced in Cangalli. - Audit and Annual Report Preparation Underway. The Company's auditor, Mr. Gaylen Hansen, CPA, visited Bolivia January 26-29, 1998 to review the Company's subsidiaries' accounting and auditing procedures in preparation for the Company's annual consolidated financial report and Form 10-KSB Annual Report. Mr. Hansen was accompanied by Terry C. Turner, the Company's president. - Cost-per-ounce Production Projection Made. Mr. Guido Paravicini, M.A., Eng., recently presented the Company's management with a cost-per-ounce production projection based on the open pit program scheduled for the reopening of the Cueva Playa area once fine gold recovery issues are resolved. Mr. Paravicini projects per-ounce costs of US$170, which is substantially below industry averages. While the Company cannot guarantee Mr. Paravicini's projections will be accurate, and may be influenced by unforeseen factors not calculated by Mr. Paravicini, the Company's management was pleased to see that all calculable factors indicate very high probability of feasibility in the Cueva Playa open pit. Commenting on the Company's activities, Turner added, ''Everyone is currently attributing every world problem to ''El Nino''; however, in our case we happen to fall right in the middle of its impact on the South American continent. Even so, Company management is continuing with the goals set for the first quarter of 1998; in particular, to publish the results of our Reserve Study, and next to solve our fine gold recovery issues and get back into significant production.'' Golden Eagle International, Inc. is a Denver-based gold mining and exploration company. The company is currently focusing its efforts on developing the mining rights it owns in Cangalli, Bolivia. For investor relations information, please call Sabrina Martinez at (303) 694-6101 or visit our website: www.goldeneagle-mine.com. Media inquiries should be directed to Richard Pinto at (212) 688-8599, or Guy Murrel at (303) 581-7760.