Quantcast

Golden Eagle Reports on Effects of Current Political Unrest in Bolivia on C Zone Gold Operation

September 23, 2008

Golden Eagle International, Inc. (OTCBB: MYNG) reported today that its C Zone gold operation has been affected by recent and ongoing political unrest in Bolivia. Road blockades and the lack of diesel fuel throughout the Santa Cruz Department (State), in which the C Zone mine and mill are located, over the past three-week period slowed mining and milling, and finally led to what the Company believes to be a temporary suspension of operations. The Company sought to operate at a substantially scaled-back pace conserving diesel and other maintenance items that are shipped in from the city of Santa Cruz de la Sierra during the first two weeks of the political instability. However, as the road blockades and fuel shortages continued, operations have now ceased pending the arrival of new fuel and supply shipments.

Within the past several days, representatives of the national government and its political opponents have agreed to meet and are currently negotiating potential solutions to the political challenges confronting Bolivia. Some road blockades have been lifted but diesel fuel is not being delivered to commercial distribution points within the Santa Cruz Department (State), and Golden Eagle’s operations continue to be affected. The Company believes, but cannot guarantee, that the current negotiations may soon lead to normalized commercial activity that will permit it to reinitiate operations at its C Zone gold mill.

During the past two months Golden Eagle has rigorously sought to progress its diversification objectives concerning its 4,000 tpd Gold Bar CIP gold mill in Eureka, Nevada, and other potential opportunities that the Company is pursuing in central Nevada.

Golden Eagle International, Inc. is a gold and copper exploration and mining company headquartered in Salt Lake City, Utah and with offices also in Santa Cruz, Bolivia. The Company’s most recent efforts have centered on establishing production operations on its gold project on the C Zone within its 136,500 acres (213 square miles) in eastern Bolivia’s Precambrian Shield. Golden Eagle is also continuing the development of its Buen Futuro A Zone gold and copper project in eastern Bolivia. In addition, Golden Eagle is working to maximize the potential of its Gold Bar 4,000 tpd CIP gold mill located in Eureka, Nevada through a joint venture, toll refining arrangement or potential merger.

The Company highly recommends that you review its disclosures, risk statements, previous press releases, annual reports, quarterly reports and current reports found at its website: www.geii.com.

Eagle E-mail Alerts: If you are interested in receiving Eagle E-mail Alerts, please e-mail the Golden Eagle at: eaglealert@geii.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS AND RISKS

Some of the statements in this press release are forward-looking statements and are based on current expectations, assumptions and estimates. Words and phrases such as “believe,”"intend,”"expect,”"expansion,”"anticipate,”"initiating,”"commencing,”"project,”"add value,”"bringing into production,”"maximizing,”"take advantage of,”"striving to” or similar expressions, are intended to identify “forward-looking statements.” Forward-looking statements carry certain risks regarding an assumed set of economic conditions and courses of action, including: (a) whether Golden Eagle will be able to obtain sufficient financing to continue to meet its operational goals; (b) estimates of mineralized material and future production levels; (c) uncertainties that result from actions that may be taken in Bolivia relative to increases in the Complementary Mining Tax, Corporate Income Tax or the amount paid for mining patents [claims fees] in the future; (d) uncertainties that result from social and political conditions in Bolivia; and (e) other risk factors and matters disclosed in Golden Eagle’s Securities and Exchange Commission (“SEC”) filings that may be accessed at www.sec.gov or through the Company’s web site SEC link: http://www.geii.com/investors/sec.php. There is a significant risk that actual material results will vary from projected results. No information provided in this press release should be construed as a representation, or indication in any manner, of the present or future value of the Company or its common stock. Readers of information contained in this press release should carefully review the Company’s filings with the SEC that contain important information regarding the Company’s financial results, its future plans and their limitations, and the risks involved with the Company’s operations. Golden Eagle disclaims any responsibility to update forward-looking statements made herein.

SOURCE: Golden Eagle International, Inc.




comments powered by Disqus