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Golden Eagle Engages Western States Engineering for Feasibility Study on Rio Mojos Gold Project

Posted on: Tuesday, 24 January 2006, 12:00 CST

Golden Eagle International Inc. (OTCBB: MYNG) announced today that it has entered into an agreement with Western States Engineering, an experienced mining services consulting firm located in Tucson, Ariz., to work with Golden Eagle's principal consulting geologist in Bolivia, Dr. Michael Biste, for the completion of a comprehensive feasibility study on the Rio Mojos gold project in western Bolivia.

Western States has been under contract to Golden Eagle for engineering services for the past 18 months related to the dismantling and shipping of the company's 3,500-tpd Gold Bar CIP gold plant located in Eureka, Nev., and its re-erection on Golden Eagle's Buen Futuro gold and copper property in eastern Bolivia. Western States has been paid in full for those services, and is now offering to work with Biste on this new feasibility study for the Rio Mojos gold project under the current contract without charging further fees to Golden Eagle.

"We are extremely pleased with Western States' offer, which will allow us to concentrate more of our exploration investment into proving up gold reserves on the Rio Mojos gold project. Continuing our relationship with Western States in this manner will allow us to get to work that much quicker," stated Golden Eagle's CEO Terry C. Turner. "Western States currently has technical people with decades of geological and mining experience in Bolivia working with Dr. Biste on important tasks relative to the Rio Mojos feasibility study."

Biste also brings a wealth of placer exploration experience as a result of 10 years as chief exploration geologist with IMCO/ESTALSA, the largest alluvial mining company in Bolivia during the 1980s. Biste oversaw several churn drilling and bulk sampling campaigns to establish alluvial gold and tin reserves for feasibility studies in Bolivia, Brazil and Argentina. He also spent a significant period exploring the Rio Mojos gold region and has a very practical knowledge of the geology and potential mining characteristics of the target area.

Golden Eagle maintains its focus on its premiere project in Bolivia, the Buen Futuro gold and copper project located 270 miles north of Santa Cruz. In technical planning meetings last week, Biste, together with the company's vice president for Bolivia, Mac Delozier, laid out a timetable over the next six months for several projects at Buen Futuro including: final improvements on the last three miles of access road to the mine site; finishing the field camp to house construction and exploration personnel; finalizing the topographical survey of the mine and mill sites; wrapping up the on-site soils investigations; and, obtaining the final environmental approvals from the Bolivian government for the issuance of permits.

"We remain very active in pushing the Buen Futuro agenda up field," stated Delozier. "Our job is to ensure that the minute the Gold Bar mill and recovery plant reach the site, the infrastructure is ready for re-erection, and we can cut the time needed to begin mining and processing ore."

Golden Eagle International Inc. is a gold and copper exploration and mining company located in Salt Lake City; and La Paz and Santa Cruz, Bolivia. The company is currently focusing its efforts on developing its mining rights on its Buen Futuro gold and copper project within its 136,500 acres (213 square miles) in Eastern Bolivia's Precambrian Shield, and beginning its final feasibility work on its Rio Mojos gold project in Western Bolivia.

Golden Eagle recommends that you review its disclosures, risk statements, previous press releases, annual reports, quarterly reports and current reports found at its Web site: www.geii.com.

Cautionary Note Regarding Forward-Looking Statements and Risks

The statements in this press release are forward-looking statements and are based on an assumed set of economic conditions and courses of action, including: (a) Golden Eagle's ability to obtain the necessary financing on reasonable terms; (b) estimates of mineral reserves and future production levels; (c) expectations regarding estimated mine production costs, expected trends in mineral prices, and statements that describe Golden Eagle's future plans, objectives or goals; and (d) other risk factors and matters disclosed in Golden Eagle's Securities and Exchange Commission ("SEC") filings which may be accessed at www.sec.gov. There is a significant risk that actual material results will vary from projected results depending on such factors as changes in general economic conditions and financial markets, changes in gold and copper prices, technological and operational hazards in Golden Eagle's mining and mine development activities, uncertainties inherent in the calculation of mineral reserves, mineral resources and metal recoveries, the timing and availability of financing, governmental and other approvals and other risk factors listed from time-to-time in Golden Eagle's Form 10-K and its other reports filed with the SEC. It should also be noted that H. Roy Shipes, Golden Eagle's chairman of the board, is one of the original founders of Western States Engineering and continues to have a controlling interest in that consulting firm. The Rio Mojos gold project, as well as our other exploration and mining projects in Bolivia, described in this release, or our other disclosures, should not be construed by any means as an indication of the present or future value of the company or its common stock. Additionally, our plans with respect to the Rio Mojos gold project, the Buen Futuro gold and copper project or the Tipuani Valley gold project, should not be construed by any means as an indication of whether we will ever conduct successful mining operations in connection with those projects. Golden Eagle disclaims any responsibility to update forward-looking statements made herein.

Source: Business Wire

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