Submitted by: Golden Eagle International Inc.
Categories: Community Development
Posted: May 28, 2002 – 12:00 AM EST
May 28 /CSRwire/ - SALT LAKE CITY, Utah - GoldenEagle International, Inc. (MYNG, OTCBB) announced today that it is the subject of a feature article in English and Spanish in the most recent edition of Bolivia's premiere resource and mining magazine, Energy, Mining and Construction. Due to substantial interest in the article shown by the Company's shareholders, and the Company's desire to ensure that the article does not reach just a select few, the article is reprinted here with the permission of Energy, Mining and Construction:
Golden Eagle International, Inc. (Golden Eagle) has proven to be resilient and progressive over the last 6 years in Bolivia. While dozens of foreign mining companies have abandoned Bolivia in the midst of the worst economic and mining crisis in decades, Golden Eagle has refused to join those leaving. In fact, the company has continued its exploration, confirmation and project planning on its gold concessions in the Tipuani Gold Mining District in western Bolivia. In addition, however, Golden Eagle also went forward in 2001with a large exploration play and land acquisition in the Precambrian Shield in eastern Bolivia. Energy, Mining & Construction focuses its analysis on this progressive survivor and its plans for the immediate future.
I. The Company & Its Executives.
Golden Eagle is a gold exploration and mining company with its head offices in Salt Lake City, Utah. The company's shares are publicly traded on the NASD Bulletin Board under the symbol "MYNG". Golden Eagle has an experienced group of executives and advisors who were formerly with some of the largest mining companies in the world.
·Terry C. Turner, the company's President, is an attorney who has practiced law in Bolivia in the areas of mining, business and international transactions for 18 years. Turner is the first and only American attorney licensed to practice law in Bolivia.
·Ronald L Atwood, Ph.D, Vice President for Development, is the former Chief Metallurgist for Newmont Gold, and former Director of Research for all of Newmont Mining's operations. Newmont is one of the largest mining companies in the world, and has recently become the second largest gold producer in the world.
·Max Staheli, MBA, Director, is the former Controller for South American operations of Barrick Gold Corporation. Barrick is the largest gold mining company in the world.
·Donald Hausen, Ph.D, Technical Director, is a former Chief Mineralogist for Newmont Mining.
·Rick Sandri, Ph.D, Technical Director, is a former Senior Associate of Behre, Dolbear & Co., a large international mining consulting firm. Dr. Sandri oversaw the study that Behre Dolbear carried out in the Tipuani Gold Mining District for Golden Eagle.
·Mac Delozier, Vice President for Administration, has resided in Bolivia for more than 35 years. Mr. Delozier has held various administrative positions in Bolivia for national and international companies.
·Victor Hugo Bretel, General Manager of Golden Eagle's Bolivian subsidiary, is an architect with 30 years of experience in earth moving and construction.
·Giovani Viscarra, Ph.D, Mine Superintendent, wrote his doctoral dissertation on the Tipuani Gold Mining District in 1986, and has been intimately involved with studying, consulting and writing about the District and the Cangalli conglomerate formation for 16 years.
II. Golden Eagle's Properties in the Tipuani Gold Mining District.
Originally, Golden Eagle had 2,004 hectares (5,000 acres) in Cangalli, Bolivia,
in the heart of the Tipuani Gold District, under a 25-year contract with the United Cangalli Gold Mining Cooperative, Ltd. During the past 6 years, because of its confidence in the area, the company has claimed an additional 28,000 hectares (69,000 acres) covering the main body of the ancient Tipuani River basin, or paleochannel, which was refilled with gold bearing conglomerates, or consolidated sand, gravels and cobbles, deposited during the late Tertiary Age. Golden Eagle reviewed hundreds of reports written about portions of its Tipuani properties by FONEM, Bolivia's former mining exploration fund; GEOBOL, Bolivia's former geological survey; the former Bolivian Ministry of Mines; UMSA, the national university in La Paz; and many private geological consultants. However, several studies and reports within the last several years concentrated specifically on Golden Eagle's area of interest. (Viscarra, 1986; Herail, et al, 1991; Trites, 1996; Paravicini, 1997; Paravicini, 1998; Behre, Dolbear, 1999; Atwood, 1999; Atwood, 2001; Viscarra, 2001.)
The town of Cangalli, in the Tipuani Gold District, where Golden Eagle has its mine and field offices, is located 100 km (62 miles) northeast of La Paz, Bolivia in a straight line, and 270 km (168 miles) by good paved and gravel roads. The Tipuani Gold District is found in the middle of the Apollo-Caranavi Trench in a valley formed by the Tipuani River and its tributaries. The underlying bedrock is made up of Paleozoic shales, sandstones and quartzites, which are covered in the section of the paleochannel of the ancient Tipuani River by a formation of conglomerates from the late Tertiary which have been given the name "Cangalli conglomerates" because the formation outcrops pronouncedly at the town of Cangalli. Since the beginning of the Quaternary, the Tipuani River has been creating its present course, mainly cutting through the Cangalli conglomerate. In the Tipuani basin, the Cangalli conglomerate has a length of 29 km (18 miles), and an average width of 2.5 km (1.6 miles), with a depth of 500 to 2,500 meters (1,600 to 8,200 ft). Mining in the area during the last several decades was concentrated in the recent gold-rich Quaternary gravels of the current Tipuani River, but is now shifting back to the Cangalli conglomerate since the small miners and cooperatives erroneously concluded that the recent gravels have been depleted. Golden Eagle's exploration focus has been on the enormous Cangalli conglomerate deposit. The company completed a shaft for sampling purposes begun by the United Cangalli Cooperative that is 300 meters (1,000 ft) deep, running from the level of the current river to the underlying Paleozoic bedrock. The information learned in the process was invaluable and contributed substantially to Golden Eagle's current mine plan.
Gold mining in the Tipuani Gold District has taken place for at least 1,000 years, with 1,000 metric tons (32,150,000 troy ounces) of estimated gold production based on historical data accumulated since colonial times. Other unconfirmed estimates reach many times this figure. (Stoll, 1961.)
Ore grades mined in the Cangalli conglomerate have been historically very interesting, with most miners pursuing one of some thirty-five distinct pay streaks or horizons. As much as 125 kgs (4,019 troy ounces) of coarse gold were recovered from as little as 8 m3 (10.5 y3) of conglomerate material in a "glory hole" just upriver from the town of Tipuani in the paleochannel. (Aramayo Company production records.) Aramayo also reported that in 1944, at the Tujojahuira mine, a single sample in the conglomerate yielded 112 kgs (3,600 troy ounces) of gold in 12 m3 (15.7 y3) of material. (United Nations, 1968.)
a. Golden Eagle Studies.
The first report that Golden Eagle received in 1996 from an independent geologist, Albert Trites (M.A. Colorado School of Mines), showed similarly high anomalous values in the pay streaks. Trites bulk sampled the pay streak being mined at the time at level 235 of the Cangalli shaft, and reported 27.06 grams (0.87 troy ounces) to 62.33 grams (2 troy ounces) per y3, with an average grade of 36.27 grams (1.17 troy ounces) per y3. In smaller two-kilo samples in the same pay streak, Trites reported 218.36 grams (7 troy ounces) per y3 and 345.45 grams (11 troy ounces) per y3. Commenting on the danger of the "nugget effect" present in sampling in the Cangalli conglomerate and the non-homogeneous deposition of the gold, Trites said, "Ordinarily, [these high values] would not be used in determining averages, but this is not an 'average' gold placer deposit." However, in production these averages did not hold up because of small volumes and the same "nugget effect."
Golden Eagle's greatest interest came from general sampling in the Cangalli conglomerate without reference to the pay streaks carried out in early 1996 by Trites and Viscarra in the Chaco area of its concessions. Trites reported an average grade of 2.4 grams (0.07 troy ounces) per y3 from bulk samples, while Viscarra reported 1.12 grams (0.037 troy ounces) per y3 from smaller 10 kg samples. In his report of January 1996, Trites estimated a "reserve block" in the Chaco and Cangalli areas of the concession, less than 5% of the total then held, of 5.1 million ounces of gold. Trites and Viscarra's work lead Golden Eagle to conclude that a much more detailed general sampling was needed crossing the entire vertical and horizontal section of the deposit without any preferential sampling in the pay streaks, to ensure that a bulk mining approach would be feasible. At the beginning of 1997, the company acquired a diamond drill to begin extensive drilling since typical placer drilling techniques using churn drills were not going to reach a sufficient depth. However, the company's technical board advised against any sampling technique that would not take into account the "nugget effect", or non-homogeneous deposition of the gold in the deposit. An experienced exploration geologist, Guido Paravicini (M.A., Washington University) was contracted to conduct an extensive bulk-sampling program. Paravicini, together with three additional field geologists in charge of sampling teams, carried out a 13-month bulk sampling and geological mapping effort that resulted in a report to Golden Eagle in May of 1998. The sampling teams, benefiting from the steep terrain of the deposit, designed a strategy that allowed them to get on three sides of each area sampled with channels, trenches and pits. The data from a total of over 800 sites resulted in over 3,000 bulk samples and lab assays. The report estimated a proven reserve of 6.4 million ounces in the Chaco and Cangalli areas, with an average grade of 5.4 grams (0.17 troy ounces) per m3 in the Chaco area that the company had targeted for intensive exploration and eventual mining. The report defended the use of high anomalous sampling values on the basis that all alluvial deposits are non-homogeneous in their gold deposition, but in this case sampling could not afford to ignore those high values at the risk of also misrepresenting the average grade as too low. (Indicator Kriging as Applied to an Alluvial Gold Deposit, Geostatistics for Natural Resources Characterization, Part I, pp 337-348; 1984.) However, the question still remained of how to best mine the site.
In October of 1998, Golden Eagle contracted Behre, Dolbear & Company, Inc., a Denver-based consulting firm with substantial experience in Bolivia having consulted with COMIBOL extensively, to verify the size and nature of its conglomerate gold deposit. After a 9-month long effort using field sampling and a literature search, Behre, Dolbear reported finding physical gold in 93% of its samples throughout the entire horizontal and vertical section of the conglomerate deposit using channel sampling, and concluded that while the deposit was the result of alluvial deposition, it was a totally unique alluvial gold deposit. However, Behre Dolbear also reported that due to the severe terrain of the deposit itself, future sampling and open pit mining would be very difficult.
b. An Innovative Mine Plan.
Golden Eagle's Vice-President for Development, Ronald Atwood, Ph.D, set out to turn the difficulties cited by Behre Dolbear into advantages. His field studies reported in August of 1999 were ground breaking. He reported on the use of Knelson Concentrators to recover the fine gold in the deposit down to 4 microns, and the need for an efficient flow sheet that separated the gold from extremely sticky clay found in the deposit. He determined that the small miners and cooperatives in the Tipuani Gold District had never efficiently recovered more than the coarse gold present in the conglomerate due to these thick clays that were hard to dissolve with rudimentary recovery techniques. This alone was not a revelation and had been well known for decades in the zone. The solution in a high volume operation, however, was a critical discovery. Over the next two years, to that metallurgical work Dr. Atwood and Dr. Viscarra added studies and observations on the behavior of the conglomerate material and found that it would subside to one draw point opened at the end of a number of lateral workings for the purpose of mining using "conal subsidence", which has been characterized as a form of block caving without the need of expensive interior mine infrastructure to cut the ore block. By designing a mining method that pushes an adit under the ore and allows the ore to subside to various draw points built with reinforced concrete at the end of lateral drifts, Dr. Atwood created an ingenious, inexpensive mine plan that would take advantage of the mountainous terrain formed by the conglomerate. Effectively, each draw point would be extracting ore from a vertical column cutting across several highly mineralized pay streaks as well as the lower grade material between the pay streaks, for a higher average grade.
In a fortuitous turn of events, and after years of lobbying, the high power distribution network installed a 25-megawatt line directly over the entire length of Golden Eagle's property. Through the use of electrically powered conveyors for ore haulage and tailing impoundment, in addition to all ore processing, the company was able to project extremely low costs per ton of ore mined. Using an average target grade of 0.25 grams (0.008 troy ounces) of gold per ton of ore mined, which is well below the grades estimated in all of the combined sampling, Dr. Atwood estimated a very low cost per ounce of gold produced of less than $75. The key factors in the operation are high volume earth movement (11,000 tons per day); inexpensive electricity for ore haulage, tailings impoundment, and processing; an inexpensive, well qualified labor force; and recoveries of free gold in the range of 95% due to a flow sheet that effectively separates the clays and recovers fine gold into the -10 micron range.
c. First Phase Mining.
Due to the worldwide contraction in mine financing, Golden Eagle elected to begin
operations by building out its entire interior mine infrastructure and processing 1,000 tons per day at its Cueva Playa site 2 kilometers northeast of the Cangalli township. Golden Eagle has received $1.3 million in funding and has ordered several specialized pieces of equipment for its first phase plant. The company projects that this initial operation will provide invaluable data about the characteristics of the ore for the step up to the next phase of operations at 11,000 tons per day.
d. Social Contribution, Sustainable Development & the Environment.
Golden Eagle has proven to be a mining company with a conscience and social vision.
The company has provided the only doctor in Cangalli for the past 5 years. Golden Eagle rehabilitated the local hospital in Cangalli and provides the only local pharmacy. The company has sponsored annual health fairs by bringing dozens of doctors, interns and medical students from La Paz to provide free physicals, vaccinations, pre-natal care and eye exams for over 300 of the local residents.
The company has provided the school in Cangalli with its only set of encyclopedias, maps, charts on physiology, and learning videos, as well as its only television. In the interest of hygiene, the company upgraded the school's restrooms. Golden Eagle has also sponsored the graduating class from the local high school in Guanay on its trip to explore Bolivia.
During its time in Cangalli, Golden Eagle has donated a fixed percentage of its gold production to the town of Cangalli, and provided power in the community for 3 years until the distribution network arrived. The company's heavy equipment has been used to build dikes and clear streambeds to prevent annual local flooding in the town.
For 6 years, Golden Eagle has had a policy of hiring and training local residents, and acquiring all possible supplies from local merchants to contribute to the ongoing development of the communities within its area of influence.
The company has also demonstrated a commitment to the environment. Golden Eagle's mine plan calls for the use of cleaner, quieter electricity in all phases. In addition, the company's planning calls for re-circulation and cleaning of all processing water, but any water returned to the Tipuani River will be 100 times cleaner than the water removed. This mine plan also implements an orderly tailings impoundment, instead of the age-old practice in the gold zone of dumping tailings into the river. Finally, Golden Eagle has an excellent plan in place for re-contouring and re-seeding any ground disturbed through mining.
III. Golden Eagle's Most Recent Acquisition in the Precambrian.
For the past several years, Golden Eagle had under study three concessions at the western
edge of Bolivia's Precambrian Shield, near Ascension de Guarayos, 230 kilometers (138 miles) north of Santa Cruz de la Sierra, that totaled 60,000 hectares (148,000 acres). In 2001, the company acquired the areas surveyed and the studies that had been produced. In 2002, those concessions were reduced to 50,600 hectares (125,000 acres). Besides its own work, and that of its predecessors, Golden Eagle has been guided by other significant studies of the area. (Arce Burgoa, et al, 2000; Biste, Gourlay, 1999; Paravicini 1996.) Golden Eagle's concessions overlay part of the Guarayos Greenstone Belt, which has proven to host volcanogenic massive sulphide (VMS) deposits that have assayed positive for gold, copper, silver and zinc. The company's properties surround the well-known Miguela and El Porvenir concessions. Golden Eagle is optimistic that the Guarayos Greenstone Belt has an excellent potential and has placed a high exploration priority on identifying and proving up further VMS deposits in the area.
Golden Eagle has stayed, has progressed, has proven to be a good citizen, and has shown that it is committed to the dynamic future of mining in Bolivia."
Golden Eagle International, Inc. is a gold exploration and mining company
located in Salt Lake City, Utah and La Paz, Bolivia. The foregoing article from Energy, Mining and Construction does not contain all of the relevant information about Golden Eagle. Pertinent information regarding the Company should be reviewed and can be found at its website: www.geii.com, where management recommends that all shareholders and prospective shareholders review its disclosures, risk statements, previous press releases, Annual Reports on Form 10-KSB, Quarterly Reports on Form 10-QSB and Current Reports on Form 8-K. The Company is currently focusing its efforts on developing its mining rights on 74,000 acres in the Tipuani Gold Mining District in Western Bolivia, and continuing exploration on 125,000 acres in Eastern Bolivia's Precambrian Shield. However, please note that Golden Eagle does not claim reserves on either of these mining properties within the definition of SEC Industry Guide 7. For more information about the Company, call Sabrina Martinez in Investor Relations at (801) 619-9320. Media inquires should be directed to Jack McNamara at (801) 619-9320.
Forward-Looking Statements and Disclosure of Risk The future conduct of Golden Eagle's business and its response to issues raised by third parties are dependent upon a number of factors, and there can be no assurance that Golden Eagle will be able to conduct its operations as contemplated. Certain statements contained in this release using the terms "may", "expects to," "projects", "estimates" "plans", and other terms denoting future possibilities, are forward-looking statements. The accuracy of these statements cannot be guaranteed as they are subject to a variety of risks that are beyond Golden Eagle's ability to predict or control and which may cause actual results to differ materially from the projections or estimates contained herein. These risks include, but are not limited to, the risks described in the above press release; those risks set out in Golden Eagle's disclosure documents and its annual, quarterly and current reports; and the other risks associated with start-up mineral exploration operations with insufficient liquidity, negative working capital, and no historical profitability. Golden Eagle disclaims any obligation to update any forward-looking statement made herein.
For more information, please contact: