Processing

On January 11 2007, Silver Eagle announced the start up of its onsite mill. The Company's current intention is to process a bulk sample, 6,000 tonnes of which were mined and stockpiled on surface during 2006. The Mill is processing oxide material mined from the upper region of the mine and as mining progresses below the 100 m level the mineralized vein material is becoming predominantly sulphide in content, requiring a change of process in the Mill.  The new process will comprise both a lead and zinc floatation circuit, with the resulting lead and zinc concentrates being shipped by truck 100 km’s on paved highway to a local smelter. 

Expansion of the mill to 150 tpd is completed and a study, based on the October 2007 resource update, is analyzing further expansions of the mine and mill. Permitting for the mill and tailings facility expansion is already in place. Once the bulk sampling is complete, the Company expects to continue processing material through the mill to produce saleable concentrates. The Company's Metallurgical Consultant, Godfrey McDonald, continues to work closely with SGS Lakefield Laboratories in Lakefield, Ontario, as they perform testwork to maximize recoveries on the mineralized material supplied to them from the Miguel Auza Mine.

Silver Eagle owns approximately 300 acres of surface land which can be utilized for the future expansion of tailings dams and infrastructure.