Glen Eagle Resources Inc.

Glen Eagle Resources Inc.

November 12, 2009 08:30 ET

Glen Eagle Acquires the Osprey Gold Mine

MONTREAL, QUEBEC--(Marketwire - Nov. 12, 2009) - Glen Eagle Resources Inc. (TSX VENTURE:GER) ("Glen Eagle" or the "Company") Glen Eagle is pleased to announce the acquisition of the Osprey underground gold mine from Barak Mineral Resources in South Africa. The property encompasses about 4000 hectares of land and borders the Gaz Gold mine to the South.

Barak Mineral operated the mine from 1980 to 1992, and during its operational state; Osprey was producing 40,000 ounces of gold per year before the mine was closed down due political changes in the country. Past production records indicated that the head grade was 18 g/tAu. When the operations were stopped, the mine was at the 250 meter level.

The resources left on the property are presumably substantial with ore bodies stretching along a corridor of 10 km in length by 3 km in width based on geological data reported by the Department of Mines and Energy of South Africa.

Note: The technical data presented in the above paragraph concerning grade and the number of ounces produced are considered historical in nature and are not compliant with the current international reporting standards presently accepted. The data is presented only as an indication of the potential of the property and can not be relied upon since a qualified person has not yet done sufficient field work to classify the historical estimate. A feasibility study needs to be completed to determine if the proposed operation will be economically viable.

Based on the Purchase Agreement, the interest in the Osprey property will be divided 50/50 between Barak Mineral Resources (50%), and a Joint Venture (50%) comprised of Glen Eagle Resources (30%) and its financial partner PPH Holdings (20%) whereby Glen Eagle has an option with PPH Holdings to increased its stake to 40% should the option be exercised.

The government of South Africa will receive a 20% interest of the net profits as required under mining policies in South Africa.

Both Glen Eagle and PPH Holdings will be responsible for financing the development of the Osprey Gold mine as part of the only cost incurred to acquire the property. Glen Eagle expects to have little share dilution in the process of financing the operation.

The technical content presented herein has been reviewed by Benoit M Violette P.Geo. geologist and a qualified person according to the NI 43-101 disclosing standards.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release"

Contact Information

  • Glen Eagle Resources Inc
    Jean Labrecque
    514 938-4888
    514-938-0644 (FAX)