War Eagle Mining Company Inc.
TSX VENTURE : WAR

War Eagle Mining Company Inc.

September 20, 2007 09:01 ET

War Eagle Mining Company Inc.: Surface Diamond Drill Holes Significantly Expand Potential of Tres Marias Mine Site

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 20, 2007) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) (the "Company") announces that surface diamond drill holes GO 1, 3, 7 and 8, all located between 60 meters (197 feet) to 90 meters (295 feet) south of the Tres Marias Mine, have significantly extended the known mineralized body and are located some 25 meters (80 feet) apart. High grade mineralization was encountered in each hole as follows:



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Drill Distance Ge
hole From To (meters) Zn(%) (g/t)
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GO-1 66.20 68.15 1.95 18.21 162
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GO-1 70.61 74.00 3.39 5.24 148
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GO-1 77.11 78.87 1.76 4.82 53
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GO-1 is 70 meters southeast of mine shaft
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GO-3 40.13 40.93 0.80 15.12 202
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GO-3 41.61 46.55 4.94 21.84 243
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GO-3 63.40 64.40 1.00 11.84 140
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GO-3 71.93 74.84 2.91 11.81 150
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GO-3 75.86 79.00 3.14 13.12 87
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GO-3 79.00 86.65 7.65 18.52 119
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GO-3 is 60 meters due south of mine shaft
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GO-7 69.60 71.40 1.80 4.72 62
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GO-7 76.41 78.75 2.34 8.84 85
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GO-7 85.92 88.25 2.33 21.24 218
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GO-7 88.25 89.47 1.22 5.28 58
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GO-7 89.47 90.22 0.75 9.48 95
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GO-7 is 67 meters southwest of mine shaft
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GO-8 54.50 55.75 1.25 9.96 55
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GO-8 56.97 58.12 1.15 15.11 158
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GO-8 71.08 72.14 1.06 9.18 46
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GO-8 72.14 74.46 2.32 14.60 82
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GO-8 81.70 84.60 2.90 7.85 54
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GO-8 84.60 86.50 1.90 6.96 31
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GO-8 86.50 88.59 2.09 20.72 203

GO-8 is 90 meters southwest of shaft
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Drill holes 2, 4, 5 and 6 were exploratory holes drilled elsewhere with nominal results. The samples above were assayed by Copperstate Analytical Laboratory in Tucson, Arizona.

At the recent 2007 Minor Metals & Rare Earths Conference held in Hong Kong, it was once again confirmed that among the minor metals, Germanium (Ge) continues to attract a significant and important role in the sector. While the major producers, such as Teck Cominco and Umicore, highlighted both the increase in demand and worldwide production, the smaller and up and coming mining operators such as War Eagle were at the center of the spotlight as future producers. It was pointed out that demand worldwide will continue to be China based and China driven. Current trends indicate that China has already become a net importer of the ore worldwide and presently has the largest smelter operations for processing of Ge tetrachloride and Ge metal.

It is forecasted that demand will continue to drive up pricing significantly in the next twelve to twenty-four months as USA government stockpiles continue to sell off. Current prices of Ge metal are approximately $1,150/kg and could reach upwards of $1,400/kg to $1,700/kg or more given the demand trends for China's technology boom. Such companies as War Eagle Mining, which is expected to bring their Germanium Zinc ore into production in 2008, will benefit significantly from this demand shift which is not expected to diminish in the foreseeable future. For more information regarding germanium visit the USGS website at http://minerals.usgs.gov/minerals/pubs/commodity/germanium/.

About War Eagle Mining:

War Eagle Mining Company Inc. is an experienced mineral exploration company publicly traded since 1987 and on the TSX Venture Exchange under the symbol WAR. The Company is in the exploration and development phase of the Tres Marias Germanium and Zinc Mine in Mexico. The Tres Marias is a former producing high-grade zinc and germanium mine that first produced ore in 1949.

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.

CUSIP. No. 933901209

Forward Looking Statements

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 will transpire, or occur, or if any of them do so, what benefits, including the amounts of proceeds which 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 include future pricing trends of Ge metal, completion and production timetables. These statements are based on assumptions made by the company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.

The TSX Venture Exchange has not reviewed and does not accept the responsibility for the adequacy or accuracy of the contents of the foregoing.

Contact Information

  • War Eagle Mining Company Inc.
    Bob Faris
    Vice President, Corporate Development
    1-800-877-1626 or (604) 606-7973
    or
    War Eagle Mining Company Inc.
    Steve McGuire
    1-800-877-1626 or (604) 606-7973
    Email: info@wareaglemining.com
    Website: www.wareaglemining.com