• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Eastern Goldfields, Inc. Announces Extension of Open Pit Operations, Phase IV Diamond Drilling and Receipt of Underground Mining Licence

Posted on: Wednesday, 1 August 2007, 15:06 CDT

SAN DIEGO, Aug. 1 /PRNewswire-FirstCall/ -- Eastern Goldfields, Inc. ("EGI") is pleased to announce the following:

1. The Company has extended Open Pit operations The Company has extended Open Pit Operations. After the Company completed its Reverse Circulation drilling programme in the vicinity of the old Rosie's Fortune workings (situated at the eastern extremity of the Lily Fault within the Company's mining title), the Company extended Open Pit Operations. The drilling results suggest that, based on current estimates, open pitable Mineral Reserves may approximate 100,000 tonnes with an average grade of approximately 3.5 g/t. If these estimates are accurate, this would represent a gold content of 10,000 oz. The Company commenced production in July 2007 and it currently anticipates that it will continue with production through March 2008. 2. The Company has commenced Phase 4 Diamond Drilling On June 6, 2007, the Company commenced Phase 4 of the diamond drilling programme. This program is designed to continue to probe the underground extension of the Lily Mine mineralization over a strike distance of some 2,000 m to a depth of approximately 500 m below surface. To date, 1,934 m of the 11,200 m planned to be drilled in Phase 4 have been completed. Included in this programme are boreholes which will test the mineral resource potential below the planned limits of the new Rosie's open pit. The Company currently anticipate that if current projections are accurate, we may complete Phase 4 in October 2007. The Company plans to include the results from Phase 4 in the recently commissioned Bankable Feasibility Study for the planned new underground mine. 3. The Company received a Mining Licence The Company's Mining Licence for underground mining at the Lily Main section has been granted by the Department of Minerals and Energy on June 27, 2007. Receipt of this authorisation now enables development of the main adit on 2 Level to proceed. As currently planned, the Company anticipates that it will accelerate the development programme for the remainder of 2007. The Company has already placed orders for major items of mining equipment and it anticipates that if current projections hold, the new equipment will be delivered over the next three months. About EGI:

EGI is a growing company engaged in the mining, exploration and acquisition of gold properties in some of Southern Africa's most prospective regions. The Company holds mineral rights over 34,600 acres (14,000 ha). Based on current estimates and projections, the Company currently has Mineral Resources in excess of about 1.3 million ounces and Mineral Reserves in excess of about 366,000 oz.

This press release contains 'forward-looking statements'. These are statements concerning plans, objectives, goals, strategies, expectations, estimates, intentions, projections, developments, future events, or performance, underlying (expressed or implied) assumptions and other statements that are other than historical facts. In some cases forward-looking statements can be identified by the use of forward-looking words such as 'believes,' 'expects,' 'may,' 'will,' 'should,' or 'anticipates,' or the negative of these words or other variations of these words or comparable words, or by discussions of plans or strategy that involve risks and uncertainties. Management wishes to caution the reader that these forward-looking statements, including, but not limited to, statements regarding the Company's plans, projected growth in our sales volume, goals and, the business strategy of the Company and other matters that are not historical facts are only predictions. No assurances can be given that such predictions and the estimates regarding mineral reserves, success of mining plans, or other projections will prove correct or that the anticipated future results will be achieved. Actual events or results may differ materially either because one or more predictions prove to be erroneous or as a result of other risks facing the company. Forward-looking statements should be read in light of the cautionary statements and risks that include, but are not limited to, the risks associated with a small company, the intense competition the company faces from others, and technological changes. Any one or more of these or other risks could cause actual results to differ materially from the future results indicated, expressed, or implied in such forward-looking statements. We undertake no obligation to update or revise any forward-looking statement to reflect events, circumstances, or new information after the date of this press release or to reflect the occurrence of unanticipated or other subsequent events.

Eastern Goldfields, Inc.

CONTACT: William M. Aul, +1-619-497-2555, waul@juno.com, for EasternGoldfields, Inc.

Source: PRNewswire-FirstCall

More News in this Category