Bolivian Ministry of Mines Confirms Nationalization Not a Consideration; Proposal to Raise Mining Taxes Meets Strong Opposition
Golden Eagle International, Inc. announced that it has begun a deep trenching program to prove continuity of the gold mineralization on the C Zone of its eastern Bolivian mining properties that both exploration and preliminary pilot operations have demonstrated. Contingent upon financing and final feasibility, trenching and processing gold-bearing material to a depth of up to 6 meters (20 feet) from surface will be the final step to help move the Company’s current pilot operations toward full-scale operations. To date, pilot operations have processed material from pits dug at regular intervals throughout the C Zone. Now, the trenching program will link several of these pit sampling sites to illustrate inter-site consistency and create parameters to assist in building credible models for potential open pit mining.
Golden Eagle’s trenching program will also reveal the underlying saprolite, or undeteriorated Precambrian country rock, which the Company has demonstrated is also mineralized with gold-bearing quartz veins and stockworks. These structures will be sampled and processed in Golden Eagle’s pilot plant as a potential source of additional mineralized material.
Bolivia’s Minister of Mining and Metallurgy, Guillermo Dalence, this week confirmed his representations made at the end of 2006 that recently proposed reforms to Bolivia’s mining industry do not include nationalizations, and that expropriation of private mining operations or assets is not a consideration. In addition, proposals presented to Bolivia’s Congress last week to raise mining taxes have met with strong opposition from Bolivia’s private mining sector and mining co-operatives. An estimated 15,000 miners marched in protest in the mining town of Potosi last week, and miners across Bolivia have mobilized to resist any attempts to unreasonably increase mining taxes. Golden Eagle cannot assure that mining taxes will not be increased, but based on representations made to its executives in Bolivia by officials of the Ministry of Mining and Metallurgy, the Company believes that any increases that are enacted by Bolivia’s Congress will be reasonable and will permit investment and progress in the sector.
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Golden Eagle International, Inc. is a gold and copper exploration and mining company headquartered in Salt Lake City, Utah and with offices in Santa Cruz, Bolivia. The Company is currently focusing its efforts on developing its mining rights on its Buen Futuro gold and copper project, as well as its gold project on the B & C Zones, within its 136,500 acres (213 square miles) in eastern Bolivia’s Precambrian Shield.
The Company highly 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
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) whether Golden Eagle will be able to obtain sufficient financing to continue to meet its operational goals; (b) estimates of mineral reserves and future production levels; (c) expectations regarding estimated mine production costs taking into account higher petroleum prices, expected trends in mineral prices, and statements that describe Golden Eagle’s future plans, objectives or goals; (d) 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; e) uncertainties that result from social and political conditions in Bolivia; and f) 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, social and political conditions in Bolivia 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 Buen Futuro A Zone gold and copper project, or the B & C Zone 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.
Golden Eagle International, Inc., Salt Lake City
Sabrina Martinez, 801-619-9320
Source: Golden Eagle International, Inc.