Mr. Peter George reports
Gold Eagle Mines Ltd. (TSX: GEA) has released an exploration target potential for the Bruce channel which has been prepared by Peter George, PGeo, of Geoex Ltd. In Mr. George's opinion, the exploration target potential of the Bruce channel, based on the drilling completed to the end of 2007, is 14.1 million tonnes to 16.5 million tonnes grading between 20 grams gold per tonne to 25 grams gold per tonne, yielding an in situ potential of between 9.0 million to 13.3 million ounces of gold.
Geoex has prepared an independent report on the exploration target potential of the Bruce channel, located within the Gold Eagle property and situated along the prolific Red Lake trend, west of Goldcorp Inc.'s operating Red Lake and Campbell mines and immediately southwest of Goldcorp Inc.'s past-producing Cochenour Willans mine.
Along the Bruce channel, at approximately 800 metres below surface, lies the Bruce channel discovery mineralized envelope. This mineralized envelope, which remains open in all directions, is currently estimated to extend a minimum of 1,100 metres vertically with a horizontal footprint of approximately 720 metres northeast-southwest and 450 metres northwest-southeast.
The qualified person and author of the report is Mr. George, PGeo, consulting geologist, who has over 40 years experience in the Canadian mining industry with extensive experience in the exploration for gold in Ontario, Quebec and Manitoba.
The author's opinions on the geological potential of the Bruce channel are based upon a thorough review of drilling completed along the Bruce channel, which consisted of 165 drill holes and wedges totalling approximately 103,708 metres completed to year-end 2007, and 329 significant composited assay intervals developed by the Author.
Based on the Author's composite assay database, 100% of the composites resulted in an average grade of 9.0 grams gold per tonne, indicating potential for 14.1 million tonnes to 16.5 million tonnes containing between 4.1 million to 4.7 million ounces of gold. Based on the Author's composite assay database, the upper 50% of the composites resulted in an average grade of 16.8 grams gold per tonne, indicating potential for 7.4 million tonnes to 8.5 million tonnes containing between 4.0 million to 4.6 million ounces of gold.
In the Author's experience, reconciliation of surface exploration drill holes with underground bulk samples and stope production data generally indicates that wide-spaced exploration drill holes understate both the grade and width of mineralized structures by factors of 100% to 200%. The Author therefore concludes that the composite assay database indicates geological potential for an average grade in the 18 to 27 grams gold per tonne range.
The Bruce channel mineralization is considered to be the down-plunge extension of the past-producing Cochenour Willans ore body, which is projected to enter the north boundary of the property at a depth of approximately 700 metres below surface. The Cochenour Willans mine produced approximately 1.2 million ounces of gold from 2 million tonnes of ore at a recovered grade of 18.5 grams gold per tonne. Allowing for 15% mine dilution and 95% mill recovery, this indicates an in situ grade of approximately 22.9 grams gold per tonne.
Recognizing the limitations of assessing the grade of Archean lode gold deposits based solely on drill hole data, the Author considers the current drill exploration program has had a higher than average hit ratio in terms of "significant intersections". This conclusion is based on Rogers (1982) who noted that at the Dome mine in Timmins, in areas that were ultimately mined, 40% to 60% of holes completed through multi-vein gold structures and 50% to 80% of holes completed through single vein structures failed to return any gold values in excess of 1.7 grams per tonne.
In the Author's opinion, these factors must be taken into consideration when evaluating the significance of surface drilling results as, "the role of drilling is paramount in the success or failure of 'making a mine' however, drill results are often misleading when consideration is given only to the economic value of the drill core assays themselves." (Rogers 1982).
Therefore, the Author believes that it is reasonable to determine the in situ gold target potential of the Bruce channel based upon average grades in the 20 to 25 grams gold per tonne range that straddles the average grade of the up-plunge Cochenour Willans ore body.
In conclusion, the Author's opinion is that the exploration target potential of the Bruce channel, based on the drilling completed to the end of 2007, is 14.1 million tonnes to 16.5 million tonnes grading between 20 grams gold per tonne to 25 grams gold per tonne, yielding an in situ potential of between 9.0 million to 13.3 million ounces of gold.
The potential quantity and grade estimates presented herein are conceptual in nature, there has been insufficient exploration to define a "mineral Resource" as defined in NI 43-101, and it is uncertain if further exploration will result in the target being delineated as a mineral Resource.
Disclosure of the potential quantity and grade of a potential mineral deposit that is to be the target of further exploration is permitted under Sections 2.3(2) and 2.3(3) of National Instrument 43-101 ("NI 43-101") provided that the necessary cautionary language is appended to any reference to the potential target estimate, and the basis for determining the potential target is clearly stated.
In the Author's opinion current drilling on the property is too wide-spaced to enable a NI 43-101 compliant resource estimate. However, visual inspection of drill sections has given the Author confidence that there is a strong apparent structural trend that future surface drilling, underground drilling and underground development will demonstrate to have continuity.
The Author concluded that the property is of considerable merit and warrants ongoing surface exploration and commitment to a major underground exploration effort that will provide access to fully delineate the geological setting and orientation of the gold-bearing structures and to take bulk samples to properly determine the grade of the mineralization.
No material errors were found by the Author during the review of the geological and assay databases. The drilling and analytical database meets industry standards and in the opinion of the Author the site personnel have conducted their work to standards that meet or exceed Canadian Institute of Mining and Metallurgy best practice guidelines.
Mr. George P.Geo is a qualified person within the meaning of National Instrument 43-101. Mr. George has reviewed the contents of this news release and has confirmed that it reflects the opinions and conclusions expressed in his report and that no opinions or conclusions have been omitted that would have a material impact on the information presented herein.