Friday May 22, 7:01 am Eastern Time
Company Press Release
Golden Eagle Announces Bolivian Gold Reserve Results of
Geological Report
DENVER--(BUSINESS WIRE)--May 22, 1998--Golden Eagle International, Inc.
(NASDBB:MINE - news) today announced the results of an extensive geological study on the gold
mining concessions on which the company has mining rights in Cangalli, Bolivia.
The study was carried out by, and the corresponding report was prepared by, Guido Paravicini,
M.A., Eng., an independent geophysicist and mining engineer retained by the company in La Paz,
Bolivia. The assays which resulted from the sampling procedures were performed by
Inspectorate-D.C. Griffith Laboratories, an international firm based in London.
The study, the second geological report prepared for Golden Eagle by Paravicini, is based on
channel, trench and pit samples taken from 718 points within the Cangalli concessions. A total of
2,900 assays were completed by Inspectorate-D.C. Griffith Laboratories. In Paravicini's report he
calculates a proven reserve of 6,430,000 troy ounces of gold; indicated resources of 78,714,000
troy ounces; and inferred resources of 157,428,000 troy ounces.
Because of the volume of technical data required for transcription, the company will provide a
synopsis of the full report for review on Golden Eagle's Web site, www.goldeneagle-mine.com, as
soon as management is able. Interested parties are welcome to review Paravicini's first report, (G.
Paravicini, Technical Geological Report, April 1997), also available on Golden Eagle's Web site.
''The results of Mr. Paravicini's report confirm the company's belief that the concessions within the
Cangalli region of Bolivia contain world class gold reserves,'' Terry C. Turner, Golden Eagle's
president and CEO stated.
''We will now focus on developing our strategic plan for the future based on a careful reading of Mr.
Paravicini's new information. Given the magnitude of Mr. Paravicini's findings, Golden Eagle's
management must proceed carefully and reasonably,'' Turner continued.
When informed of Paravicini's findings by a company representative in Bolivia, Adan Zamora,
Bolivia's Vice-Minister of Mining, commented: ''Dr. Turner, Golden Eagle's president, and I have
met and discussed Golden Eagle's progress in Bolivia. The reserve calculation from Mr. Paravicini's
report is fantastic. A million troy ounces would have been considered a huge find for Bolivia, so 6
million ounces is overwhelming.
''We welcome and fully support Golden Eagle's investment in Bolivia. As the Vice-Minister of
Mining I will review Mr. Paravicini's findings and have them reviewed by Mr. Giovanni Viscarra, a
geologist on whom I rely regarding the Tipuani area.'' Giovanni Viscarra was the mine superintendent
for Golden Eagle's subsidiary operating in Cangalli through most of 1996 until he left for health
reasons.
Alvaro Riveros, Bolivia's Vice-Minister for Natural Resources, when reached in Africa at a
conference, stated: ''Bolivian miners have known for centuries that the Tipuani Mining District
generally, and the Cangalli area specifically, contain incredible gold resources. This most recent study
of the concessions under Golden Eagle's control now confirms exactly how incredible.
''Bolivia is very proud to have such a substantial gold reserve within its territory.'' (Mr. Riveros is a
shareholder in Golden Eagle.)
Paravicini's geological report states that 15 target areas, representing approximately 80% of the
concession's surface area, were studied over the course of 10 months during the later part of 1997
and the early part of 1998.
While the company had acquired a Diamec 252 diamond drill to assist Paravicini in his sampling
program on the Cangalli concessions, Paravicini and Dr. Donald Hausen, a member of the
company's Technical Advisory Board, recommended against its use due to the deposit's
characteristics. Instead, a program of channeling, trenching and pitting was chosen because of
increased representative sample size.
Since deep drilling was not going to be used, Paravicini created 3-dimensional modeling of the ore
blocks based on deep sampling made possible by the steep, naturally-trenched terrain, and by shaft
and pit sampling possible at depth. Sampling was conducted in sufficient detail to be able to compute
grade and quality.
The sites for inspection, sampling and measurement were spaced closely enough, and the geologic
character was so well defined, that size, shape, depth and mineral content was well established as to
either resource or reserve calculations. Paravicini emphasized other important factors relative to his
sampling program and report:
-- All sampling was performed by Paravicini, or experienced,
independent field geologists under his control and direction.
-- Either Paravicini, or his staff, maintained strict control of the
samples once taken, including the chain of custody until those
samples were placed in the control of Inspectorate-D.C. Griffith
Laboratories.
-- The samples were prepared within the control of Inspectorate-D.C.
Griffith Laboratories, fire assays were performed on those
prepared samples, and the resulting bead was subjected to an
Atomic Absorption finish. All samples were subjected to duplicate
analysis, with approximately 20% of the samples subjected to
triplicate analysis. The lowest of the assays obtained was always
used instead of the average.
-- On all ore block modeling Paravicini used between 30% and 40% of
the indicated cubic meterage as indicated by topographical
data to ensure conservative calculations.
-- To qualify as a reserve, all resources had to meet minimum
physical and chemical criteria related to the specified mining
and production practices, including those for grade, quality,
thickness, depth; and had to be reasonably assumed to be
economically and legally extractable or producible at the time of
the determination of the reserve. Mine modeling had to
demonstrate the feasibility of specified mining and production
practices, or practices which could be reasonably assumed, on the
basis of tests and measurements.
Paravicini was chief exploration geologist for 19 years for the National Bolivian Mining Corporation
(''Comibol'') specializing in gold and tin exploration. He holds a bachelor's degree in humanities
(mathematics) from the University of Santiago, Chile; a bachelor's degree in mining and engineering
from the Technical University of Oruro, Bolivia; and a master's degree in mining engineering from
Washington University in St. Louis.
In addition, he has also received certificates from Harvard University in geology and geophysics;
Michigan State University in communications; the United States Agency for International
Development in geophysics; the Japanese International Cooperation Agency in mining and
metallurgy; and a diploma of merit in geology from the United States Geological Survey.
Golden Eagle cannot assure that the findings of Paravicini's report are accurate in view of the fact
that the report was produced by an independent consulting firm which is responsible for its accuracy.
However, the company's management has concluded that it will rely on the report as accurate for
purposes of future planning and development of the site.
Guido Paravicini does not own stock or options in Golden Eagle, has not been promised any
compensation in the form of stock or options, and is paid a fee for his professional services.
Shareholders and prospective shareholders should carefully consider the preceding information, as
well as the company's 10K Annual Reports, 10Q Quarterly Reports and 8K Periodic Reports, all of
which are available through the company's Web site as indicated below. In addition, shareholders
and prospective shareholders should take notice of the fact that the company's filings of its 10K
Annual Report for 1997, and its 10Q Quarterly Report for the first quarter of 1998, are not current
due to an error on the part of the company's subsidiary's independent auditor in Bolivia regarding
U.S. Generally Accepted Accounting Principles (''GAAP''). That error resulted in an incorrect audit
which has been corrected and a re-audit has been conducted and is being submitted to the
company's independent U.S. auditor to allow for the preparation of the company's consolidated
audit. This press release includes statements which bear on the company's future, including potential
operating performance and earnings potential. There can be no assurance that actual results in
performance will not materially differ from the company's expectations. The preceding matters
constitute cautionary statements identifying important factors with respect to critical matters bearing
on the company's future, including certain risks and uncertainties commonly found within the gold
mining industry.
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 inquiries should be directed to Richard Pinto at (212) 688-8599. Golden Eagle
can also be found at its new website: www.goldeneagle-mine.com.
Contact:
Golden Eagle International, Inc.
Sabrina Martinez, 303/694-6101
Guy Murrel, 303/581-7760
Richard Pinto, 212/688-8599 (Media Inquiries)
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