SECURITIES AND EXCHANGE COMMISSION
Washington, DC
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report: August 3, 1999
GOLDEN EAGLE INTERNATIONAL, INC.
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(Exact name of registrant as specified in its charter)
Colorado 0-23726 84-1116515
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(State of other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
4949 South Syracuse Street, Suite 300, Denver, Colorado 80237
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 694-6101
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Item 5. Other Events
Golden Eagle International, Inc. ("Golden Eagle" or the "Company") has
received a new metallurgical report relating to its Cangalli, Bolivia gold
deposit from Ronald L Atwood, Ph.D., a metallurgical consultant and former chief
metallurgist for Newmont Mining. Dr. Atwood is also a member of Golden Eagle's
technical advisory board. Dr. Atwood expressed his opinion in the report that
operating costs at the Cangalli site (including general and administrative costs
and an allocable share of corporate overhead) will range from $31 to $123 per
ounce of gold produced, depending on the feed grade and tonnage being mined. Dr.
Atwood also expressed his opinion that the difficulty other consultants have
identified in recovering fine gold in Cangalli can be overcome with certain
specified technology and equipment. Dr. Atwood's report, "Report of
Investigation on the Cangalli, Bolivia Gold Deposit--Recovery of Fine Gold with
a Mine Plan and Economic Projections," is the result of his field work on Golden
Eagle's Cangalli site, as well as bench testing and laboratory analysis. Dr.
Atwood has visited and investigated the Cangalli gold deposit several times
since March 1997. His most recent work was performed between April and June
1999.
Dr. Atwood's most significant findings reported to Golden Eagle are in
three categories:
Fine gold recoveries. Other consultants have raised concerns that
traditional mining and recovery methods used in the Cangalli area will not
result in the recovery of a significant amount of the "fine gold" known to
be present in the deposit. Dr. Atwood stated in his report, "Based on the
work performed, the gold recoveries in the Chaco area [of the Cangalli gold
deposit] can be expected to be in excess of 95%." He further stated,
"Through enhanced acceleration in the centrifugal concentrator systems we
have demonstrated that the historical fine gold losses suffered in the
Cangalli area can be resolved."
Cost per ounce of gold produced. Dr. Atwood expressed his opinion in the
report that operating costs at the Cangalli site (including general and
administrative costs and an allocable share of corporate overhead) will
range from $31 to $123 per ounce of gold produced, depending of the feed
grade and tonnage being mined. (It should be noted that Dr. Atwood's cost
per ounce projections were not based on estimates of resources or reserves.
Dr. Atwood based his projections on information from sampling data
collected on the Cangalli site by other consulting geologists,
geophysicists and mining engineers.)
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Recommendation regarding operations. Dr. Atwood recommended in his report
that Golden Eagle consider installing a 400-ton-per-hour,
8,800-ton-per-day, mining operation and recovery plant at the Chaco Playa
site. He provided a mine plan and economic projections for his recommended
operation based on various scenarios. His estimated cost for the plant
construction, mining equipment acquisition, and operating and
administrative costs during the start-up phase was $3 million, but ramping
up operations could begin with a smaller investment. Dr. Atwood stated that
he believes that his recommended mine plan would be the best and most
cost-effective method for creating positive cash flow for the company,
while also gathering a significant amount of information regarding the
Cangalli gold deposit.
Regarding Dr. Atwood's report and recommendations, Golden Eagle's
President, Terry C. Turner, commented, "On the heels of the Behre Dolbear report
confirming the nature of the Cangalli gold deposit, Dr. Atwood's report provides
Golden Eagle with a practical framework for the future. It is very exciting to
read Dr. Atwood's opinion that we can solve our fine gold losses while creating
positive cash flow, and at the same time generate important, additional sampling
data from production."
Golden Eagle is attempting to raise the financing necessary to implement
certain of Dr. Atwood's recommendations. This will take a significant amount of
investment, however, and at this time Golden Eagle does not have those sources
readily available to it. In addition, Golden Eagle recognizes the continuing
risks inherent in its operations in Bolivia, including risks that there are
insufficient gold resources for a profitable operation; significant, current
working capital deficits; and other risks inherent in carrying out mining
activities in Latin America.
Golden Eagle International, Inc. is a Denver-based gold mining and
exploration company. The Company is currently focusing its efforts on developing
its mining rights in Cangalli, Bolivia. For more information about the Company,
call Sabrina Martinez at (303) 694-6101 or Guy Murrel at (303) 581-7760. Media
inquires should be directed to Richard Pinto at (212) 688-8599. Golden Eagle can
also be found at its website www.geii.com, where management recommends that all
shareholders and prospective shareholders review its Annual Reports on Form
10-KSB, Quarterly Reports on Form 10-QSB and Periodic Reports on Form 8-K.
The future conduct of Golden Eagle's business and its response to issues
raised by third parties are dependent upon a number of factors, and there can be
no assurance that Golden Eagle will be able to conduct its operations as
contemplated. Certain statements contained in this press release and Golden
Eagle's other reports using the terms "may", "expects to," and other terms
denoting future possibilities, are forward-looking statements. The accuracy of
these statements cannot be guaranteed as they are subject to a variety of risks
that are beyond Golden Eagle's ability to predict or control and which may cause
actual results to differ materially from the projections or estimates contained
herein. These risks include, but are not limited to, the risks described in the
above press release; those risks set out in Golden Eagle's disclosure documents
and its annual, quarterly and periodic reports; and the other risks associated
with start-up mineral exploration operations with insufficient liquidity,
negative working capital, and no historical profitability. Golden Eagle
disclaims any obligation to update any forward-looking statement made herein.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: August 3, 1999 Golden Eagle International, Inc.
By: /s/ Terry c. Turner
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Terry C. Turner, President
