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MEI Online: Commodities: Metallic Ores: Gold: Latest News: Aug.23, 2007


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:: Golden Eagle Reports on Status of C Zone Gold Mill Expansion

Golden Eagle International, Inc. has announced that it is entering the final phase of the expansion of its C Zone pilot mill to full-scale commercial gold production.

Most of the essential pieces of equipment for the mill have arrived on-site and are being installed. In addition, infrastructure improvements are continuing, including water resource development and a substantial mine camp expansion to accommodate the larger workforce necessary to man expanded operations. The Company is also moving to clear a 20-hectare (50-acre) site in preparation for expanded open-pit mining. During its exploration and pilot operation phases on its C Zone eluvial gold placer deposit, Golden Eagle identified gold-bearing mineralized material commencing at the surface down to a depth in places of 7 meters (23 feet). The Company plans to incrementally expand its C Zone pilot mill, which has operated for the past 9 months, from an initial 50 cubic meters (approximately 100+ tonnes) per day up to a production capacity of 500 cubic meters (approximately 1,000+ tonnes) per day.

The Company also reported that tests are currently being run in two laboratories in Canada on C Zone samples of mineralized material provided to Knelson Concentrators and Falcon Concentrators for final determinations regarding the best treatment methods to resolve fine gold recovery issues. Once the final results are reached within the next week, Golden Eagle's technical team in Bolivia will analyze the results and the appropriate concentrator will be air-freighted to Santa Cruz, Bolivia for installation in the expanded mill.

In the meantime, Golden Eagle is continuing to process mineralized material that had been stockpiled during the pilot phase of operations using a Neff centrifugal concentrator that the Company had in stock. The data generated from these current shake-out operations will be added to the data from the two Canadian concentrator manufacturers to maximize fine gold recovery. The Company anticipates the arrival of the final pieces of required equipment for the expanded mill within the next 30-day period and the generation of revenue from gold production during the fourth quarter of 2007.

The C Zone is located on the Company's Precambrian properties 300 kilometers (180 miles) north of Santa Cruz, Bolivia and approximately 5 kilometers (3.2 miles) southwest of Golden Eagle's larger A Zone VMS gold and copper project. The C Zone gold deposit is open to the south and at depth in several places. Golden Eagle intends to continue its exploration on the C Zone after full-scale commercial production has commenced.




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