New Discovery Hole at Tres Marias; However, Exploration to Be Suspended......
posted on Feb 03, 2009 07:15AM
Edit this title from the Fast Facts Section
|February 3, 2009|
|War Eagle Announces New Discovery Hole at Tres Marias; However, Exploration to Be Suspended During Economic Downturn While Company Increases Focus on Fly Ash Programs|
|VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 3, 2009) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) announces today a new discovery hole at the Tres Marias concession in Mexico. The assay result for this hole, known as GO-31, is an intercept of 1.35 meters with a grade of 6.97% Zinc and 37 grams per tonne Germanium.
The hole is located at La Blanca, which is approximately 600 meters to the south-east of the old mine shaft. This hole is on what one of what War Eagle deems to be the "outlying targets"; which are target areas identified by War Eagle that are outside the historic Tres Marias mine area but on the concession.
In addition to the La Blanca discovery hole, the Company will soon release assay results from recent underground drilling within the historic mine workings.
Despite the new discovery hole, War Eagle also announces that it will be suspending exploration drilling at the Tres Marias concession during the economic downturn. Jeff Lantz, President and CEO of the Company, commented, "We believe that in light of the current financial markets and the significant decrease in zinc prices over the past year, it would be prudent to conserve our positive cash situation and minimize drilling expenditures until the economy recovers." The Company currently has cash of more than CDN $2,300,000.
With infrastructure in place, it is anticipated that drilling and exploration could resume at short notice and with minimal re-start costs. Advantage will be taken during the suspension of drilling to prepare a technical report compiling the results of drill programs conducted over the past two and a half years.
During 2009 the Company intends to place an increased emphasis on identifying projects involving the potential recovery of germanium from fly ash and similar material. In this regard, the Company is actively looking for potential fly ash projects in several places, including the United States Midwest, and from the SaskPower operations in Canada.
Recovering germanium from fly ash offers a number of advantages. "Once a project is identified, germanium recovery from fly ash offers a much more favorable risk profile and likely lower costs than would be expected from mining operations," Mr. Lantz stated. "We believe that War Eagle can become one of the leaders in this area."
The Company will also continue its current fly ash processing initiatives, including its Phase 2 small-scale pilot plant in Spain aimed at developing process methodologies for extracting germanium and gallium from fly ash generated from the ELCOGAS S.A. coal gasification plant in Puertollano, Spain.
War Eagle Mining Company Inc.
War Eagle Mining Company Inc. is an experienced mineral exploration company publicly traded since 1987 and is listed on the TSX Venture Exchange under the symbol WAR. The Company's primary mission is to identify sources of germanium and to develop methodologies for recovering germanium, either through mining or through the extraction of germanium from fly ash and similar materials.
The Company is in the exploration phase in the area of the Tres Marias Germanium and Zinc Mine in Mexico, where such mine first produced high-grade germanium and zinc ore in 1949. This Project is under the direction of Mr. Terence Schorn, P. Geo., the qualified person pursuant to the National Instrument 43-101. Additionally, War Eagle is conducting testing in Spain regarding methodologies for extracting germanium from fly ash produced at the Puertollano, Spain coal gasification plant owned by ELCOGAS S.A.
This disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities.
In addition there are risks and uncertainties associated with mining operations, therefore the Company's actual results, performance or achievements could differ materially from those expressed in or implied by these forward-looking statements. There can be no assurance that any future events will transpire, or occur, or if any of them do so, what benefits, including the amounts of proceeds, the Company will derive therefrom. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the company based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.