To: MilesM who wrote (18891 ) 5/19/1999 1:19:00 AM From: john Respond to of 34075
chew on this, BUN LETTUCE BUN, NO MEAT On October 7, 1998, Golden Eagle entered into a consulting agreement with Behre Dolbear & Co., Inc. ("BD&C") of Denver, Colorado, an internationally-known consultant to the minerals industry. BD&C agreed to make a site visit to Golden Eagle's Cangalli, Bolivia prospects and attempt to confirm the presence of gold at a limited number of sites to determine the suitability of areas of the prospect for further exploration and, based on the results of the foregoing efforts, generate a work plan which, if successful, would enable Golden Eagle to identify sufficient resources on the Cangalli property for mining. Golden Eagle previously reported the results of work by other consultants, but concluded that the techniques used by those other consultants may have been insufficient to justify the calculations made. BD&C completed its first-phase field evaluation on certain designated target areas within Golden Eagle's Cangalli gold deposit in October 1998. BD&C advised Golden Eagle that its field geologist confirmed the existence of gold mineralization on Golden Eagle's properties. The work BD&C has performed to date confirms Golden Eagle's management's initial conclusion that earlier studies had focused on too broad an area within the property and that a greater likelihood of success could be realized by Golden Eagle focusing on smaller target areas for more extensive sampling and analysis. In mid-February, 1999, BD&C carried out a further site review and additional analysis on Golden Eagle's Cangalli properties. As a result of BD&C's investigation, BD&C worked with Golden Eagle's management to identify target areas for more extensive sampling with the intent of identifying sufficient resources to be considered for future possible mines. BD&C has emphasized to Golden Eagle that it is not in a position, at this time, to confirm third party estimates or to make its own estimates of existing or potential reserves or resources which the property may contain. BD&C's report on its fieldwork done in October 1998 and February 1999 had just been received by Golden Eagle as of the date of this Report on Form 10-QSB, and is currently being analyzed by the Company.