Golden Phoenix Expands Moly Project to Larger Mill-Site: Production Capacity for Its Ashdown Mine Jumps 1200%
2005-04-20 05:00 ET - News Release
SPARKS, Nev., April 20 /PRNewswire-FirstCall/ -- Golden Phoenix Minerals, Inc. (BULLETIN BOARD: GPXM) , announced today it has secured a long-term lease on a highly suitable 20-acre mill-site adjacent to its Ashdown gold/molybdenum Joint Venture in northwestern Nevada. In doing so, Golden Phoenix boosts Ashdown's molybdenum processing capacity from 10,000 tons to 120,000 tons, a twelve-fold increase, and lengthens the mill's initial operating period to five years.
The newly acquired property will host Ashdown's molybdenum processing facility, replacing a smaller six-acre parcel previously chosen as the site for a pilot mill. Acquisition of the larger parcel paves the way for converting Ashdown's "pilot mill test facility" into a "small-scale mill facility." Under State of Nevada guidelines, a small-scale mill is allowed to process 12 times the tonnage of a comparable pilot mill.
"We seized the opportunity to acquire this critical parcel just before our final pilot mill permits were about to be issued," said Kenneth S. Ripley, CEO of Golden Phoenix. "With the new land-lease in hand, I immediately directed my team to convert our pilot mill application over to the small-scale classification, guaranteeing us a base of operations for years to come. The timing could not have been better. By scaling up our mill capacity now, rather than later, we will go straight into long-term, full-time mining this summer without any delays to our previous schedule."
Ripley went on to add, "The larger mill-site is ideal for this purpose, enabling us to expand both our mining and milling capabilities by increasing our tailings impoundment capacity. Most of the basic infrastructure -- including roads, power and water -- is already in place. Whereas our previous location required us to haul the ore four miles, the new site allows for a downhill haul of less than one mile. All of these factors translate into significant savings of time and money, and greatly enhance our projections for profitability at Ashdown. The minor permitting changes we will encounter are insignificant compared to the benefits for our shareholders and our partners at Win-Eldrich Mines. I am greatly encouraged."
The new mill-site will employ the same mill equipment and design as the former pilot facility, and therefore can utilize the permitting work already performed. To complete the permit process, Golden Phoenix will enter a 30-day review period after updating its existing Reclamation Bond and Water Pollution Control submittals. These revisions, already in process, are expected to defer the mill's start-up date by about five weeks, but will not affect the start of moly mining operations later this summer.
The mill equipment is currently staged 20 miles from the new mill-site. Groundbreaking is now forecast for late spring, following receipt of final approvals. Construction will begin with digging the tailings impoundment and pouring a foundation, followed by assembly of the mill and flotation circuits, and erection of a steel enclosure. Relocating the mill to its new site will not affect the Company's plans to begin excavation work on Ashdown's Sylvia vein deposit by midsummer. The targeted portion of this ore body, averaging 98 pounds of elemental molybdenum (Mo) per ton, is estimated to contain over two million pounds of molybdenum concentrate (MoS2), currently valued at over $65 million. Golden Phoenix has allocated ten months to mine and mill the ore shoot, while at the same time expanding the known mineralization in and around the Sylvia deposit through exploratory drilling and sampling.
Ripley concluded, "When you consider that this exceptionally valuable ore body occupies less than one acre of land within a 2000-acre property, the promise of finding more such deposits clearly compels us to plan for a long and productive future at Ashdown. This mill facility is Golden Phoenix's commitment to that future."
Golden Phoenix Minerals, Inc. is focused on developing and mining superior high-grade deposits of precious and strategic metals to enhance profitability and return maximum value to its shareholders.
Forward-Looking Statements. Certain statements included herein may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of a number of factors. These risks and uncertainties, and certain other related factors, are discussed in the Company's Form 10-KSB, Form 10-QSB and other filings with the Securities and Exchange Commission. These forward-looking statements are made as of this date and the Company assumes no obligation to update such forward-looking statements as a result of a number of factors.
CONTACT: Golden Phoenix Minerals, Inc. 775/853-4919
E & E Communications Paul Knopick 949/707-5365 pknopick@eandecommunications.com Golden Phoenix Minerals, Inc.
CONTACT: Golden Phoenix Minerals, Inc., +1-775-853-4919; or Paul Knopick of E & E Communications, +1-949-707-5365, pknopick@eandecommunications.com, for Golden Phoenix Minerals, Inc.
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