Golden Eagle Reports Jerritt Canyon Gold Mill Authorized to Restart Operations
SALT LAKE CITY, UT -- (Marketwire) -- 03/25/09 -- Golden Eagle International, Inc. (OTCBB: MYNG) announced today that Jerritt Canyon mine has completed a series of environmental-compliance requirements and that the Nevada Division of Environmental Protection (NDEP) has made a determination authorizing the restart of the mine's milling operations. The Jerritt Canyon mine is owned by Queenstake Resources USA, Inc. (Queenstake), a wholly-owned subsidiary of Yukon-Nevada Gold Corp. Queenstake is a major gold producer in northern Elko County, Nevada.
"Queenstake has met all requirements for start up, but there are requirements to continue operation and we'll be working with them to meet those in the near future," said NDEP Administrator Leo Drozdoff.
Queenstake, together with its contract mill operator, Golden Eagle International, Inc. (Golden Eagle), has worked with the NDEP continuously during the past six months to resolve air and water issues to a level that will allow Queenstake to begin milling. The restart will allow Queenstake, and its contract mill operator, Golden Eagle, to rehire workers, generate revenue and continue required environmental work at the site.
"Having the mill back within the environmental requirements and its subsequent re-opening demonstrates how well Queenstake, the NDEP and the Attorney General's office can work together to ensure that the environment is protected, a viable mill is permitted to operate, and getting motivated millers and miners back to work," said Deputy Attorney General Robert Kilroy.
HISTORY
Jerritt Canyon Mine, located about 50 miles north of Elko, Nevada, shut down in August 2008. In September 2008, Golden Eagle began contract maintenance and environmental compliance operations with Queenstake's on-site staff. In October 2009, Queenstake and Golden Eagle entered into a Mill Operating Agreement, while working toward fulfilling certain environmental requirements established by the NDEP.
The NDEP coordinated with the USDA Forest Service during the shutdown period to ensure the protection of human health and the environment.
Queenstake holds environmental permits for air, water, waste and surface reclamation activities issued by the NDEP for the Jerritt Canyon mine. The NDEP has been working closely with Queenstake in a cooperative effort to address compliance issues at the site with respect to potential impacts to the environment.
Queenstake and the NDEP coordinated efforts to resolve air emission controls related to the ore roasting operation, as well as diligently working to ensure that all water management systems were maintained and operated properly during the shut down.
PROGRESS
Queenstake conducted a top-to-bottom evaluation of the Jerritt Canyon mill operation with NDEP and made numerous changes to address or eliminate air emissions. As part of this effort, and in conjunction with other interim operational changes, Queenstake has committed to implement state-of-the-art mercury-emission control technology by May 30, 2009.
NDEP staff will remain on-site to monitor progress and ensure compliance with all environmental requirements.
"We have been and will continue to work together with the NDEP to ensure that we meet or exceed their performance guidelines. This restart order is also the result of Golden Eagle and Queenstake working well together and we expect this successful relationship to continue as we move forward into operations," said Queenstake's CEO Graham Dickson.
Golden Eagle International, Inc. is a gold and copper exploration, mining and milling company headquartered in Salt Lake City, Utah; with offices in Elko, Nevada and Santa Cruz, Bolivia. The Company's most recent efforts have centered on its Agreement with Queenstake Resources USA, Inc. for the maintenance, ongoing regulatory compliance and future operation of the Jerritt Canyon 4,000 tpd CIL gold mill. In addition, Golden Eagle is working to maximize the potential of its Gold Bar 4,000 tpd CIP gold mill located in Eureka, Nevada through a joint venture, toll refining arrangement or potential merger. The Company is also maintaining its C Zone gold mine and mill in eastern Bolivia's Precambrian Shield, as well as its Buen Futuro A Zone gold and copper project, in a temporarily dormant status.
The Company 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.
