Golden Phoenix is focused on Royalty Mining in the Americas with gold, silver and strategic metals projects in the United States, Canada and Peru. Its royalty business model offers exploration upside with the backing of production.
In 2011, the company expects to: 1) participate in gold production at its Mineral Ridge property in Nevada as part of its joint venture with Scorpio Gold Corporation 2) begin drilling at its properties in the Shining Tree district of Ontario, Canada and 3) commence tungsten recovery, moly production and gold exploration in Peru. As our strategy unfolds, we expect our cash flow will be leveraged to the price of gold or underlying strategic metal.
- Acquiring a property with near-term production potential.
- Making the project production-ready by providing permitting, bonding, drilling, geological and/or financial support.
- Securing a mine operator with the experience necessary to take the project into commercial production.
- Retaining up to a 30% interest in each project, and ultimately converting some of those interests into royalty agreements.
- Reinvesting a portion of the cash generated from joint-venturing the project into other properties with near-term production potential.
Golden Phoenix is planning to analyze up to 50 prospective properties, with a view towards optioning up to 10 of those properties on terms and conditions acceptable to the Company. From these optioned properties, the Company hopes to identify up to 5 projects that can be advanced toward commercial production.
Our objective is to acquire:
- multiple projects, in
- multiple jurisdictions, with
- multiple operators, and
- retain up to a 30% interest in each project, and ultimately convert some of those interests into royalty agreements.
We believe this strategy will allow us to:
- diversify our portfolio of mining properties
- minimize geopolitical risk with projects throughout the Americas
- find the best mine operators in each jurisdiction
- further reduce risk by utilizing multiple mine operators
The sum of five such projects has the potential, in our opinion, to add up to more than one project, without the risk of investing in just a single mining project.