Zinc

[Lone Clone]

War Eagle Mining Company Inc.: Progress on Mine Development and Exploration Program Tres Marias Mine, Mexico
Thursday May 31, 4:49 pm ET

http://biz.yahoo.com/iw/070531/0260368.html

VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--May 31, 2007 -- War Eagle Mining Company Inc. (CDNX:WAR.V - News) -

HIGHLIGHTS

- Eighty seven additional exploration targets have been identified within the mining concession.

- War Eagle Mining expects to release measured and indicated resource in July 2007 that will be compliant with the Canadian National Instrument, NI 43-101

- Ongoing drilling underground on the 6 1/2 mine level at Tres Marias returned high-grade zinc value of 26.5% over 10.26 meters (unweighted average) and high-grade germanium of 143 g/t over 3.36 meters.

Mr. Terence Schorn, P.Geo., President and CEO of War Eagle Mining Company Inc., reports on the progress of the mine development and expanded regional exploration programs at the Tres Marias Mine Chihuahua, Mexico.

Exploration Program

Exploration Targets, Recon Work

Through geologic & structural mapping, remote sensing and field surveys, 87 exploration targets within the concession have been identified by Henry Truebe, PhD. Field crews are currently conducting detailed reconnaissance, including geophysical testing and sampling over these targets.

Geophysics

High Resolution Resistivity Survey

This spring (2007), seventeen lines of high resolution resistivity geophysics were performed over the Tres Marias mine site and exploration targets of interest within the associated concession boundaries, including exploration targets La Blanca canyon & El Graven (mentioned in previous news releases as high priority targets). The goal of the geophysical survey is to clearly identify collapse breccia features in areas of interest. Collapse breccias host the mineral deposit within the Tres Marias mine and we expect to see similar features associated with any new discoveries in the concession.

Mine Area (Target 26)

A total of 9 resistivity lines were collected above and directly south of the mine workings. Three features were noted directly south of the mine site have been identified as areas of additional interest. These features are all within 250 meters (820 ft) of current mine workings.

Northwest of Mine (Target 17)

A resistivity line located northwest of the mine indicates high conductivity over 90 meters (295 ft) indicative of a collapse breccia zones. The area is only 450 meters (1476 ft) away from current mine workings.

La Blanca Canyon (Target 19)

Two resistivity lines were carried out cross-cutting the canyon. Both lines indicate a correlating conductive feature, characteristic of a collapse breccia zone.

El Graven (Target 18)

Three resistivity lines were carried out at the El Graven area, including a new area of interest adjoining to the northwest, along strike. The geophysics has produced a conductive feature ranging from 160 (525 ft) to over 300 meters (984 ft), laterally, with considerable depth and sharply defined boundaries. Again, this conductive feature is characteristic of a brecciaed collapse zone.

Gravity

379 gravity readings were collected over the mine area and to the south, including a detailed survey over La Blanca Canyon. Processing is near completion and very preliminary interpretations indicate density contrasts and zones of interest. Final processing and interpretation may yield additional results

Definition Drilling Progress

The underground drilling program is on the 37th hole located on the 6 1/2 level of the mine and surface drilling is completing the 7th drill hole in the mine area. There are drill samples at the lab being analyzed at this time and we are expecting more results shortly. As is the case at most labs throughout North America, assay results are taking longer due to the volume of samples in the system.

 
  
 Resource drilling on the 6 1/2 level includes the following results from 
 holes #24 and #25. 
 -------------------------------------------------------------------------- 
                         Distance     Mine 
 Drillhole  From     To   (meters)   Level     Zn(%)    Pb(%)       Ge (ppm) 
 -------------------------------------------------------------------------- 
 TE-24         0      1         1    6 1/2    28.31   0.0759    less than 2 
 -------------------------------------------------------------------------- 
 TE-24       2.4   5.61      3.21    6 1/2    28.22   0.0803    less than 2 
 -------------------------------------------------------------------------- 
 TE-24      5.61   8.61         3    6 1/2    26.24   0.1060    less than 2 
 -------------------------------------------------------------------------- 
 TE-24      8.61  10.95      2.34    6 1/2    33.14   0.2370    less than 2 
 -------------------------------------------------------------------------- 
 TE-24     10.95  12.66      1.71    6 1/2    18.51   0.1040          10.80 
 -------------------------------------------------------------------------- 
 TE-24      16.4   17.6       1.2    6 1/2    20.15   0.1140    less than 2 
 -------------------------------------------------------------------------- 
 TE-24      18.9   20.5       1.6    6 1/2    31.26   0.0820    less than 2 
 -------------------------------------------------------------------------- 
 TE-24      20.5     22       1.5    6 1/2    33.62   0.0712           7.83 
 -------------------------------------------------------------------------- 
  
 -------------------------------------------------------------------------- 
 TE-25         0      3         3    6 1/2    17.33   0.0672           7.27 
 -------------------------------------------------------------------------- 
 TE-25         3   7.14      4.14    6 1/2    33.97   2.3700          37.80 
 -------------------------------------------------------------------------- 
 TE-25      7.14   10.5      3.36    6 1/2    12.54  14.8200         143.00 
 -------------------------------------------------------------------------- 
 TE-25      10.5   12.6       2.1    6 1/2     2.64   0.0286    less than 2 
 -------------------------------------------------------------------------- 
 TE-25      12.6   14.5       1.9    6 1/2    29.12   0.4440          49.70 
 -------------------------------------------------------------------------- 
 TE-25      14.5   16.5         2    6 1/2     0.18   0.0121    less than 2 
 -------------------------------------------------------------------------- 
 TE-25        19     21         2    6 1/2    14.72   0.5150          93.60 
 -------------------------------------------------------------------------- 
 TE-25        21   23.3       2.3    6 1/2     9.12   0.5490          80.60 
 -------------------------------------------------------------------------- 
 

Upon the completion of the Minesite drilling program, War Eagle expects to have completed an estimated 80 underground diamond drill holes, 40 surface diamond drill holes, 31 percussion holes and 1,296 - 5ft channel samples. The Company expects to release during July a resource estimation compliant with the requirements of policy 43-101 which will include a measured and indicated resource. Surface drilling will test several of the 87 known drill targets with similar potential to the Tres Marias mine within the 28 square kilometer (17.4 sq. mile) concession.

An application for a mine development permit is being prepared for submission to the Federal Government of Mexico. The application will consist of permitting of a 9 foot by 15 foot two compartment shaft to be sunk to approximately 500 feet depth. The shaft will be sunk to beneath the existing 7th level and be equipped with a manway/services compartment and a counterweighted skip/cage combination to provide services for men and materials as well as production purposes.

The Company is also pleased to announce that effective March 23rd, 2007 the option to acquire a 100% interest in the Tres Marias Property in Chihuahua Mexico, has now been fully exercised.

The Project is under the direction of Mr. Terence Schorn, P. Geo., the qualified person pursuant to the National Instrument 43-101.

Terence F. Schorn, P. Geo.

President, War Eagle Mining Company Inc.

This News Release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control, and actual results may differ materially from the expected results.

CUSIP. No. 933901209



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Contact:

Contacts:
War Eagle Mining Company Inc.
Bob Faris
Vice President, Corporate Development
1-800-877-1626 or [phone]
Email: [e-mail]
Website: http://www.wareaglemining.com


Source: War Eagle Mining Company Inc.