Golden Phoenix Minerals Acquiring Mill for Phase II Operations at the Mineral Ridge Gold Mine
Tuesday July 6, 7:00 am ET
- Higher Grade Gold Ores to Be Milled -
RENO, Nev., July 6 /PRNewswire-FirstCall/ -- Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM - News), which specializes in the acquisition and development of deposits in the western United States that contain gold, silver, copper and other strategic minerals, announced today that it has signed two option agreements for a processing mill that will treat its high-grade gold ores from the Mineral Ridge mine. This acquisition sets the stage for Golden Phoenix to fulfill its Phase 2 plans to move into greater gold production by milling the higher grade gold ores from Mineral Ridge.
The mill and the land were jointly negotiated with two separate owners. Esmeralda Extraction Company, who owns the 1,128 acres of private land that the mill sits on, agreed to an option to purchase for the property. The individual owner of the mill equipment also agreed to an option to purchase for the mill.
The mill, which lies just north of Lone Mountain and about 15 miles west of Tonopah, was built in about 1981 at a cost of about $7 million. It operated for nearly 4 years processing tailings from the old Tonopah silver district. During its operation, it processed up to 1,350 tons per day. When the mill was shut down for economic reasons because of falling silver prices, the operator decommissioned the facility so that it could be easily restarted when silver prices improved. Golden Phoenix plans to use the majority of the mill as it is presently designed, and will add a gravity and primary crushing circuit to handle the Mineral Ridge ore as metallurgical studies have defined. This reconditioning work along with the required permits may take up to a year before the mill can be commissioned.
Once full operations are underway, the Company plans to truck Mineral Ridge high-grade ores approximately 43 miles to the mill. These ores will have an approximate economic cut-off grade of 0.1 ounces per ton and will be mined from the Drinkwater, Mary and other defined open pits as well as the Mary underground operation. The lower grade ores from the open pits will be crushed and put on the leach pad to maximize gold production from the mine.
Michael Fitzsimonds, President and CEO of Golden Phoenix Minerals, said, "The acquisition of the milling facility is a very important step in the business plan for Golden Phoenix and will aid significantly in the future growth of the Company. The commissioning of the mill will allow the Mineral Ridge mine to achieve its full operating potential as detailed in our business plan."
The Mineral Ridge gold mine currently has a proven/probable ore reserve of 2.66 million tons averaging 0.079 troy ounces gold per ton for a total of 209,000 troy ounces. These reserves are contained within an overall drilled mineralized envelope of 11.3 million tons grading 0.048 troy ounces gold per ton for 542,000 troy ounces. Exploration potential of one to three million additional estimated ounces exists on the property.
Golden Phoenix Minerals Inc. is a mineral-property development company headquartered in Reno, Nevada. It specializes in acquiring and consolidating large, advanced-stage properties with potential for near-term production and good resource development potential. Acquisition and development emphasis is on deposits containing gold, silver, copper and other strategic minerals that are located in Nevada and the western United States. Golden Phoenix is committed to creating a high-quality portfolio of properties to achieve substantial, long-term growth and cash flow for its shareholders through production from these properties.
News 
Market Data 
Discover 
AI
