12401 South 450 East
Building D1
Salt Lake City, Utah 84020
(801) 619-9320 Office
(801) 619-1747 Fax
goldeneagleinc@earthlink.net
Avenida 16 de Julio No. 1525
Edif. Mutual La Paz Penthouse
Casilla 14888 La Paz, Bolivia
(591-2) 233-0033 Oficina
(591-2) 233-2552 Fax
oficinas.ejecutivas@acslp.org
FOR IMMEDIATE RELEASE
CONTACT: Sabrina Martinez in Investor Relations: (801) 619-9320
Golden Eagle’s “Buen Futuro” Acquisition Key to Unlocking Gold and
Copper Potential in Bolivia’s Ascension Trend
SALT LAKE CITY, UTAH—(BUSINESS WIRE)---May 30, 2003---Golden
Eagle International, Inc. (MYNG, OTCBB) announced today that it signed a Letter of
Intent to acquire 100% of the Buen Futuro mining claim located squarely in the heart of
Golden Eagle’s 125,000-acre landholding in the Precambrian Shield 162 miles north of
Santa Cruz, Bolivia, and 11 miles east of the town of Ascension de Guarayos. The Buen
Futuro claim consists of 2,500 acres and contains three well-identified gold/copper ore
bodies. These ore bodies are found in an oxide zone 130 to 200 feet thick, as well as a
supergene copper-enriched zone extending from the oxide zone to a depth of 320 feet,
sitting on top of strata-bound volcanogenic massive sulphide (VMS) mineralization.
The Company, which also announced that it is concluding the expansion to 3,500
tons per day of processed ore in its operating mine and plant in Cangalli, Bolivia, hailed
the Buen Futuro acquisition as the “key to our strategy of unlocking the gold/copper
potential of the Ascension Trend in Bolivia’s Precambrian.”
“We are very excited by the fact that the Buen Futuro gold/copper deposits,
surrounded by Golden Eagle’s claims, are just part of a much larger trend of VMS
clusters than runs both north and south onto Golden Eagle’s 125,000 acres,” stated
Ronald Atwood, Ph.D., Golden Eagle’s VP for Development, who is the former Chief
Metallurgist for Newmont Gold and did substantial work in Nevada’s Carlin Trend. “Dr.
Biste’s exploration work has identified two sizeable additional VMS exploration targets
on Buen Futuro and three more similar targets on the Company’s claims. However, the
Ascension Trend is identifiable on Golden Eagle’s property for at least 10 miles. We are
just beginning to recognize the possibilities.”
Subject to the satisfactory completion of its final due diligence by June 16, 2003,
Golden Eagle has purchased the Buen Futuro claim from Cecilia Calla de Arraya, a
Bolivian, in exchange for a 3% net smelter return, $250,000 in cash payable over the next
27 months, and restricted common shares of Golden Eagle with a value of $175,000 also
payable over the next 27 months. In addition, Golden Eagle is obtaining all geological
reports, drilling data, and other pertinent information, regarding the ore deposits on the
Buen Futuro claim.
Michael H. Biste, Ph.D., a geologist recognized as an expert in the Bolivian
Precambrian Shield, has studied the Buen Futuro gold/copper deposits over the past 10
years. He has identified an important mineralized trend of VMS clusters, the Ascension
Trend, situated in the Guarayos Greenstone Belt that runs across the Buen Futuro and
neighboring Golden Eagle claims. Based on Dr. Biste’s work on the Buen Futuro claim
and economic and metallurgical analysis by Golden Eagle, the Company expects to
confirm a significant amount of gold (found in oxide ore) and copper (found in oxide and
supergene ore) deposits on the property which it believes it will be able to mine
profitably.
Based on Dr. Biste’s studies, and Golden Eagle’s analysis to date, the Company
believes that all of the oxide and supergene ore on the Buen Futuro claim is suitable for
open pit mining, which is the most cost-effective mining method available for this ore.
The oxide ore can also be mined by free-dig, or dozer ripping, without the use of
explosives, further cutting mining costs. The deeper supergene ore may require some
explosives to mine.
Both the gold oxide ore, and the copper oxide and supergene ores, are amenable
to extremely economical heap leaching that would be entirely consistent with existing
environmental regulations in Bolivia, and do not require any grinding, which further cuts
Golden Eagle’s expected production costs for such an operation.
Pursuant to the Letter of Intent, Golden Eagle will be obligated to spend $1
million in exploration over the next three years, and $2 million in development
expenditures over the next 18 months. Golden Eagle estimates that it will require an
initial investment of $3.5 million and a construction period of 12 months to initiate
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production at an open pit mine and a heap leaching operation. Currently, Golden Eagle
does not have such funds available, and it will attempt to seek the necessary funding from
third parties. Based on the information from Dr. Biste’s reports, Golden Eagle believes
that such an operation has the potential to generate significant revenues for Golden Eagle.
“The Ascension Trend running over 10 miles of our property underscores the
potential that this acquisition represents to our shareholders,” stated Terry C. Turner,
Golden Eagle’s CEO. “With the current market recognition for gold and copper stocks,
we hope that our shareholders will finally begin to realize a very interesting price-toearnings ratio and a much improved share price that takes into account the dynamic
direction our Company is taking.”
Golden Eagle’s management is currently seeking debt financing that will allow
for an accelerated production schedule. Golden Eagle cannot assure that such financing
will become available, however, the Company believes that substantial amount of drilling
and sampling on its gold/copper ore bodies on its Buen Futuro claim, as well as its
ongoing exploration strategy on its additional 125,000 acres held in the highly
mineralized Ascension Trend in the Guarayos Greenstone Belt, increase the possibility
for debt financing.
The Buen Futuro VMS mineralization was initially identified ten years ago by Dr.
Biste through geochemical surveys, and subsequently confirmed using Induced
Polarization (IP), and Horizontal Loop Electromagnetic (HLEM) surveys. Eventually,
between 1993 and 1997, 800 miles of exploration trails were cut through the jungle to
take a total of 21,000 samples on the Buen Futuro and surrounding areas. A total of 8,400
feet of auger drilling was performed initially, with 11,000 feet of additional reverse
circulation drilling and 27,000 feet of diamond core drilling. A total of 8 miles of
trenches were dug and 5,500 trench samples were taken and analyzed.
“We believe that the Buen Futuro project is the ideal compliment to our
producing Cangalli gold mine in the Tipuani Gold District,” added Golden Eagle’s Mr.
Turner. “Our expansion to 3,500 tons per day in that operation was slightly delayed by
the arrival of the larger Knelson Concentrator, which was shipped last week from
Vancouver, B.C., and will be installed in the plant circuit within the next two weeks.
While we project that this expansion will make our Cangalli operation profitable, we are
also hopeful that the Buen Futuro property will make us more attractive to potential joint
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venture and industry partners, or institutional lenders, to provide the funding necessary to
further expand our Cangalli operation to the desired 11,000 tons per day. Our U.S. and
Bolivian management teams are ready and able to deal with the challenges and
opportunities presented by operating in two mining zones in Bolivia with enormous
potential.”
Eagle E-mail Alerts: Over 1,800 investors have recently signed up to receive
Eagle E-mail Alerts. If you are interested in receiving these alerts, please e-mail the
Company at: eaglealert@earthlink.net.
Golden Eagle International, Inc. is a gold and copper exploration and mining
company located in Salt Lake City, Utah, and La Paz and Santa Cruz, Bolivia. The
Company is currently focusing its efforts on developing its mining rights on 74,000 acres
in the Tipuani Gold Mining District, an area estimated to have produced 32 million
ounces of gold in its known history, located in western Bolivia; and initiating operations
mining gold and copper on its 127,500 acres in eastern Bolivia’s Precambrian Shield.
Golden Eagle is a mining company with a social conscience, having supported many
humanitarian programs at its mine site in the Tipuani Gold District. For the past six years,
the Company has provided the only hospital, doctor and nurse in Cangalli, Bolivia.
Golden Eagle also has provided for the educational needs of the students in that area, and
many welfare needs in the community. The Company highly recommends that you
review its disclosures, risk statements, previous press releases, and reports filed with the
SEC found at its website: www.geii.com.
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 forwardlooking statements in accordance with the Private Securities Litigation Reform Act of 1995. 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.
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