"into a full-scale production plant."Golden Eagle Receives Loan Proceeds to Complete Gold Production Plant on C Zone Project
Company Raises Estimated Gold Grades at C Zone Based on Pilot Operations
Jun 19, 2007 9:31:00 AM
Copyright Business Wire 2007
SALT LAKE CITY--(BUSINESS WIRE)--
Golden Eagle International, Inc. (OTCBB:MYNG) announced today it has received a total of $853,000 on its loan agreement with Golden Eagle Mineral Holding, Inc. ("GEMH") for the funding necessary to expand the Company's C Zone pilot gold plant into a full-scale production plant. During the past week, Golden Eagle received $550,000 in addition to the $303,000 previously received from GEMH, bringing total loan proceeds to date to $853,000. Accordingly, Golden Eagle has begun ordering essential pieces of equipment for its C Zone gold plant expansion. The C Zone is located on the Company's Precambrian properties 180 miles north of Santa Cruz, Bolivia and approximately 2 miles southwest of Golden Eagle's A Zone VMS gold and copper project.
"This is a milestone for Golden Eagle because it allows us to get into gold production and demonstrate the potential of our C Zone project," stated the Company's CEO, Terry C. Turner. "With due diligence progressing on our proposed transaction with Platinum Diversified Mining Inc. ("PDM") (See, Golden Eagle press release and Form 8-K of June 4, 2007) and our C Zone gold project moving towards production, we believe that Golden Eagle is entering a dynamic phase in our Company's history."
Golden Eagle is entitled to 100% of the proceeds from its C Zone gold operation, as well as any gold placer deposits on its eastern Bolivia mining concessions, based on the Term Sheet that the Company signed with PDM on June 2, 2007 for the sale of it's a Zone gold and copper project, the joint venture of its Precambrian properties in eastern Bolivia, and the option sale of its Gold Bar mill.
The Company plans to use the loan proceeds received to date to incrementally expand from its pilot operations up to a production capacity of five hundred cubic meters (approximately 1,000+ tonnes) per day on the Company's C Zone gold project in eastern Bolivia.
Golden Eagle is increasing its estimate of the average gold grade per cubic meter of mineralized material in the C Zone to 1 g/m3 as a result of the Company's trenching and quartz crushing programs carried out during the past 3-month period. Golden Eagle estimates that the most sampled core area of its eluvial placer gold deposit in the C Zone contains 630,000 m3 (approximately 1.26 million tonnes) of mineralized material. (Note that mineralized material is not the equivalent of proven or probable reserves.) This new increase in the estimated gold grade per cubic meter raises the estimated gold contained in mineralized material in the portion of the C Zone explored to date to over 20,000 troy ounces.
The C Zone gold deposit is open to the north, south and at depth. Golden Eagle intends to continue its exploration on the C Zone after production has commenced. The Company's mine plan calls for the use of data gathered from 265 auger drilling and shaft-style pit sampling sites, as well as from 7 months of confirmation pilot operations, to focus its initial mining on several high-grade areas identified within the C Zone.
In the final phase of its pilot operations the Company implemented a comprehensive trenching program to evaluate gold grade continuity between drilling and pitting sites, as well as a crushing program to determine the gold content of the substantial quantity of quartz fragments found in the deposit. The trenching program demonstrated that the recovered gold is extremely fine-grained, although a small number of nuggets of up to 139 mg. were present. The information obtained from the crushing program underscored that in the average cubic meter of ore 25% to 60% of the material was made up of +1/4 inch quartz fragments. Batch processing of numerous 50 kg. samples crushed to a grain size of -2mm showed gold grades of as high as 1.3 g/t. The grain size of the gold liberated from the quartz fragments was also fine, although some small nuggets of up to 42 mg. were recovered.
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Golden Eagle International, Inc. is a gold and copper exploration and mining company headquartered in Salt Lake City, Utah and with offices also in Santa Cruz, Bolivia. The Company is currently focusing its efforts on the due diligence period over the course of the next 60 days for the successful completion of definitive agreements with PDM regarding the sale of some of Golden Eagle's assets and the joint venture with PDM on its Precambrian properties. The Company continues to concentrate its efforts as well on expanding its pilot operations into production operations on its placer gold project on the C Zone within its 136,500 acres (213 square miles) in eastern Bolivia's Precambrian Shield.