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Golden Eagle Evaluates Production Potential on Two Gold Anomalies on Its Precambrian Claims in Eastern Bolivia

Posted on: Wednesday, 15 March 2006, 09:00 CST

Golden Eagle International, Inc. (OTCBB:MYNG) announced today that it is presently evaluating two gold anomalies found in the B and C Zones of its claims in the Ascension Gold/Copper Trend in eastern Bolivia's Precambrian Shield. The Company estimates that this evaluation will be completed approximately within the next 6 months, and if all indicators are positive and the Company can secure the necessary financing, production will commence shortly thereafter.

"We see the gold production potential at the B and C Zones as an opportunity for possible future cash flow with a minimal investment since we already own the necessary mining equipment and recovery plant for this type of gold deposit," stated Terry C. Turner, Golden Eagle's CEO. "Should we be successful in creating this source of cash flow, it would help us in the parallel development of our larger gold and copper deposits at the A Zone of our Buen Futuro site where the gold is microscopic and requires more complex leaching technology to recover."

The Company's geological consultant on its Precambrian claims, Michael H. Biste, Ph.D., has advanced his evaluation of the B and C Zone gold anomalies, which are located approximately 5 kilometers from the company's Buen Futuro A Zone gold and copper project. Dr. Biste found that the B and C anomalies are later in origin than the A Zone VMS gold and copper mineralization and are related to major tectonic faults with quartz veining. The primary mineralization contains mainly quartz, with some pyrite and free gold that would be recoverable in one of the Company's Knelson concentrators used at its Cangalli gold mine. Deep weathering has revealed on the surface a number of quartz formations which carry physical gold. These gold deposits are similar to other gold deposits in the region that were mined by a small mining company between 1995 and 1998 through open-pit mining and rudimentary recovery techniques to produce over 10,000 troy ounces of gold.

"The crucial factor in the B and C Zone gold deposits is that the highly weathered nature of the mineralized material makes it easy to mine down to approximately 40 meters of depth without the use of explosives and easy to process in a gravity concentration circuit," stated Hugo Aparicio, the Company's consulting mining engineer on its Precambrian claims. "The plant circuit used at Golden Eagle's Cangalli operation will be well suited for the projected B and C Zone operations with the addition of a small hammer mill to treat the oversized material that comes off the sizing screens."

The B and C anomalies extend over an area of 400 meters by 200 meters, and 1,800 meters by 400 meters respectively. Past and present exploration work by Dr. Biste, which includes sampling using auger drilling during the 1990s and current computer-assisted deposit modeling, indicates that a potential of mineralized material will exceed half a million cubic meters. Sampling results gave variable gold grades with an average grade of about 0.6 grams per cubic meter. This explored material is underlain by an additional weathered gold bearing quartz vein resource of unknown size, which the Company intends to explore at more depth in the future.

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

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 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 website: www.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 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. The mining projects in Bolivia described in this release, and related evaluations, or in 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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