More visible gold at Gold Eagle (May 11, 2005)

Southern Star Resources (SSR-V) and Exall Resources (EXL-T) have cut significant gold at their Gold Eagle mine property, 6 km north of Red Lake, Ont.

The latest drilling of the Western discovery zone (WDZ) is highlighted by high grade: up to 295 grams gold over 0.3 metre. In addition, five holes cut at least two intercepts grading greater than 15 grams gold per tonne.

Visible gold (VG) was seen in nine out of 17 holes. Assays in these areas of VG ranged from 8.85-74 grams gold over 0.24-0.44 metre. Some of these holes also cut lower grade areas grading 3.3-6.8 grams gold per tonne over 0.3-0.7 metre.

A couple of holes cut grades as high as 11 grams gold and 16 grams gold per tonne over widths of 0.65 metre and 0.3 metre, respectively, even though gold was not visible to the naked eye.

Two of the holes cut 5-6.1 grams gold per tonne over 0.5-1.2 metres.

Six holes failed to cut significant gold.

In December, the WDZ contained an estimated inferred resource of 309,000 tonnes grading 13.15 grams gold per tonne, when gold assays were cut to 70 grams gold per tonne. The current drilling is testing the limits of the zone to the east and south.

The WDZ was first cut 500 metres west of the Gold Eagle mine-shaft. Current drilling has cut the zone close to, but below the previous workings, and additional gold has been cut 200 metres to the east of the shaft.

High grades are associated with sericitized quartz veins cutting granodiorite.

The Gold Eagle mine operated from 1937-1941 and produced about 40,000 oz. gold from 162,000 tonnes of ore grading 7.65 grams gold per tonne.

The 17.9-sq.-km property is held 50% by Southern Star and 50% by Exall. Subject to approvals, Exall plans to form a new company, to be named Gold Eagle Mines, splitting off this property from its oil and gas properties.