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MEI Online: Commodities: Metallic Ores: Gold: Latest News: June 6th 2008


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:: Golden Eagle Finalizes C Zone Gold Mill Construction

Golden Eagle International, Inc. has reported that it is in the final stage of construction of its C Zone gold mill in eastern Bolivia. The Company estimates that the C Zone gold mill will begin its preliminary shake-out operations within the first 10 days of June and will commence its initial production phase at 200 tpd of mineralized material before the end of June 2008. Golden Eagle intends to incrementally expand its C Zone gold mill over the first 6 months of operations to a final projected capacity of 2,000 tpd.

The Company estimates that the most sampled core area of its eluvial gold deposit in the C Zone contains 630,000 m3 (approximately 1.26 million tonnes) of mineralized material averaging gold grades in the range of 1 g/m3, but with a range as high as 1,400 mg/m3 and a cutoff grade of 100 mg/m3. (It is important to note that mineralized material is not the equivalent of proven or probable reserves, and does not assure that the Company will achieve a level of commercial production. Mineralized material may be reclassified as production progresses.) Golden Eagle's initial mine plan will focus on several high-grade areas well identified within the C Zone. The plan will be supported by data gathered from 265 existing auger drilling and shaft-style pit sampling sites, as well as 10 months of previous confirmation pilot operations.




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