War Eagle Mining Company Inc.
TSX VENTURE : WAR

War Eagle Mining Company Inc.

August 01, 2006 16:00 ET

War Eagle Mining Company Reports High Grade Zinc and Germanium Assays from Initial Underground Drill Holes Tres Marias Mine

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 1, 2006) - War Eagle Mining Company Inc. (TSX VENTURE:WAR) is pleased to report that the first batch of assays from the underground percussion drilling program confirms high-grade Zinc and Germanium mineralization beyond the present stope walls at the Tres Marias Mine in Mexico. Mineralized drill samples confirm the lateral potential for additional tonnage within the Tres Marias Mine with encouraging widths of up to 9 meters (29.5 feet) and ending in mineralization. Further assays will be announced as they are received. Drill samples were obtained from drilling horizontally with a Jackleg percussion drill into the stope walls of the mine.



Assays below utilize a 5% zinc or equivalent germanium cut-off grade
and are weighted averages.

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Hole From To Interval % Gm/tonne
Level No. (meters) (meters) (meters) of Zinc Germanium
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4.5 4 0 7.2 x 7.2 13.1% 1065
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5 11 3.0 7.8 x 4.8 17.3% 177
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5 12 0 3.6 x 3.6 4.20% 158
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5.5 2 0 9.0 x 9.0 3.80% 201
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6 6 0 6.0 x 6.0 9.40% 14
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6.5 2 11.0 12.0 x 1.0 8.50% 16
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6.5 3 0 2.4 x 2.4 23.1% 10
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6.5 5 0 4.8 x 4.8 9.40% 27
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6.5 7 0 6.0 x 6.0 17.2% 85
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(x - denotes drill hole ended in mineralization)


The short hole drill locations were selected on the basis of 855 channel sample results which, using a 5% Zinc equivalent cut-off grade, averaged of 19.26% Zinc with 151 grams/tonne Germanium.

The short hole drill program has now been completed. The proposed 25 hole underground follow up diamond drilling program is scheduled to start in early August to determine the full extent of lateral mineralization, which is currently not known as the percusion drill program ended in mineralization in a majority of holes. The Company has purchased a portable diamond drill for both underground and surface diamond drilling. The underground and surface diamond drill programs are designed to delineate a minimum of 500,000 tonnes of mineralization, the amount considered necessary to complete a pre-feasibility study. The company is pleased to report that our work program has recently been accelerated following lengthy delays in acquiring equipment and experienced drillers which is a common occurrence in today's mining industry.

Terence Schorn, CEO of War Eagle stated, "This bodes well for our ability to demonstrate the minimum 500,000 tonnes of mineralization required for the pre-feasibility study." "While industry wide delays have affected our timetable, given our strong financial position of over $5 Million cash, we are in the enviable position to move ahead in an expeditious manner to obtain the necessary results as part of the pre-feasibility study," Schorn added.

Glenn R O'Gorman, P. Eng Mining Engineer and a consultant to the company noted in his recent independent review of the Mine Development Program "A review of existing data along with visual inspection of the mine workings and the adjacent surface indicates that the exploration potential on the property is excellent. A number of visually identifiable collapse features exist on surface in close proximity to the mined area. These are untested indications of possible other similar deposits. There are more exploration targets on the property than War Eagle can possibly explore in an extensive multi-year exploration program."

New pictures of the exploration and development program are available on the website on the Tres Marias project page at www.wareaglemining.com.

Terence F. Schorn, P. Geo, President

War Eagle Mining Company Inc.

CUSIP. No. 933901209

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
    (604) 606-7973 or Toll Free: 1-800-877-1626
    or
    War Eagle Mining Company Inc.
    Steve McGuire
    (604) 606-7973 or Toll Free: 1-800-877-1626
    info@wareaglemining.com
    www.wareaglemining.com