Ashdown Mine

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Ashdown Mine
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The Ashdown Gold/Molybdenum Mine and Mill









The Road to Mahogany Mountain and the Ashdown Mine





Golden Phoenix Minerals, Inc.



April 28, 2005



The Story of Ashdown



Golden Phoenix Minerals, Inc., a publicly traded mining company headquartered

in Sparks, Nevada, is preparing for production at its Ashdown

gold/molybdenum joint venture project located in northwestern Nevada.



The Ashdown mine hosts a highly concentrated molybdenum deposit located

within a 200-foot vein. The deposit, known as the Sylvia Vein, has been located,

sampled, drilled and assayed, and is estimated to contain 2,125,000 pounds of

available molybdenum in the form of molybdenite. Golden Phoenix intends to

mine and mill the Sylvia Vein during the next 12 months, and sell the molybdenite







Golden Phoenix Minerals, Inc. Page 1

as a concentrate through an existing life-of-mine brokerage contract with Derek

Rafael & Company, Ltd.



A small-scale mill, rated at 100 tons per day, is being permitted to process the

concentrates. At an average grade of 5.8%, the mill is capable of producing

approximately 295,800 pounds of concentrates per month. As manager and

operator of the Ashdown mine, Golden Phoenix will receive 60% of the net

proceeds from the sale of concentrate, valued at a price adjusted to market. For

reference, the April Average Dealer Oxide price was $30.37 per pound.



As managing operator of the Ashdown mine, Golden Phoenix is committed to

bringing the Sylvia Vein deposit into commercial production and exploring for

further deposits.





History of Ashdown



It is believed that the Ashdown mine was first operated sometime in the 1880s as

a gold mine. About 52,000 ounces of gold averaging 0.31 ounces per ton was

produced up to about 1942, at which time a shut-down was mandated by the L-

208 War Act, which redirected America’s mining efforts toward war-time needs.



Modern exploration at Ashdown was initiated in 1980 when American Copper

and Nickel Company (ACNC) purchased the Ashdown group of claims from the

previous owners in exchange for royalty rights that are still current today.

The Ashdown Mine



In 1982, a Finnish mining

company (OMI) entered into a

joint venture with ACNC to

explore and develop Ashdown.

The joint venture drilled 270

reverse circulation holes into

multiple targets and dug nearly

2,000 feet of tunnels (the Sylvia





Golden Phoenix Minerals, Inc. Page 2

Decline) in the process of discovering and delineating a highly concentrated

molybdenum deposit (the Sylvia Vein). 1,400 tons of bulk samples, averaging

2.9% molybdenum were excavated from the Sylvia Decline and are still located

on property. In the process, OMI identified 325,000 tons of gold ore grading

0.152 opt, 146,000 tons of molybdenum ore grading 2.74%, and a 600,000-ton

molybdenum resource grading 1.0%.



Molybdenum Ore Stockpiled at Ashdown

Following a series of

transactions, Ashdown

was acquired in 1987

by Win-Eldrich Mines

Limited (WEX), a

Canadian public

company trading on

the Toronto exchange.

WEX performed

extensive exploration

and drilling that

expanded the

resource to 1.07 million tons at 0.088 opt gold. In the period from 1995 to 2002

declining gold prices caused a lack of interest in the project from potential joint

venture partners. Several of the royalties disappeared, including those with

ACNC and OMI. With rising gold prices, interest in the property was rekindled in

2003 with new agreements reached with Golden Phoenix, culminating in the

existing joint venture.





Golden Phoenix executed a Letter Agreement to Joint Venture with WEX in

February 2004, naming Golden Phoenix manager/operator of the Ashdown mine

and granting Golden Phoenix the right to earn a 60% titled interest in Ashdown

by bringing the mine into production through investment and work-out.









Golden Phoenix Minerals, Inc. Page 3

R29E

R30E

34 35 7 8 N









R28E

R29E

NV 140 36 36





T46N T46N

Co T45N S

un T45N

ty

Ro 18 17

ad 1 2 1 0 1 2

3 2 ASHDOWN

PROPERTY Scale (miles)



19 20

Denio McDerrmit

10 11 12









95

NV







US

14

ASHDOWN









0









US 93

PROJECT

11 12 I-80

ASHDOWN Winnemucca





PROJECT AREA I-80 Elko









93

30









US

29









Alt

P rojec t Boundary









15 14 13 13 I-8

0



Reno

US 50

14

ASHDOWN MINE

SYLVIA MINE 32 US 95 6

US

22









R29E

R30E

23 24 31









Road

Tonopah



23 24 T46N

T45N US 93









ty









R28E

R29E









R29E

R30E

Coun

N

ALDER 26 25

27 26 25 6 US

CREEK 5 95

I-1

5





RANCH

Las

ASHDOWN S Vegas



PROPERTY









US 95

No Scale

7 8

34 35

FLOTATION Ashdown Project

MILL SITE Humboldt County, NV

T45N

R28E

R29E

T44N SYLVIA MINE

18 17 &

3 2 1 ALDER CREEK FLOTATION MILL





Golden Phoenix Minerals, Inc









Location of the Ashdown Property







Details of the Ashdown Deposits



Ashdown is located about 110 miles northwest of Winnemucca and 10 miles

southwest of Denio Junction in Humboldt County, Nevada. The property is

situated at an elevation of 4,700 feet on the northwest flank of the Pine Forest

Range. It covers over three square miles and is controlled through 101

unpatented mining claims.



The past work done on the property has identified potentially economic open-

pittable gold as well as high-grade underground molybdenum resources on the

property. The most recent economic evaluation defined mineralized material of

about 1.18 million tons of gold ore at 0.125 ounces per ton, and in a separate

deposit, 146,000 tons of molybdenum ore averaging about 2.9% molybdenum.

Both deposits are open for possible expansion of the mineralized inventory and

numerous step-out exploration holes have identified strong mineralization calling

for follow up drilling.









Golden Phoenix Minerals, Inc. Page 4

Golden Phoenix is currently targeting the high-grade molybdenum mineralization

for development. These ores are comprised of molybdenum disulfide (MoS2) that

will be separated through a standard floatation circuit and then sold as unroasted

molybdenum concentrate. While previous sampling and drilling has identified

mineralized material of potential commercial value in several sections of the

property, Golden Phoenix will begin by concentrating on the Sylvia Vein, a

strategic portion of the main structural zone that hosts an unusually concentrated

molybdenum deposit. This vein has been sampled and delineated by both

surface and underground drilling. A previous operator also completed

approximately 375 feet of underground bulk sampling of this vein in 1982, after

driving almost 2000 feet of access tunnels. More than $8,000,000 has been

spent by preceding operators and Golden Phoenix to locate and systematically

delineate the gold and molybdenum mineralization hosted at Ashdown.

The Sylvia Vein Target Area

26: 0.52% / 3.0 = $ 156 /ton

N

28: 1.8% / 3.5 = $ 540 /ton

29: 5.7% / 3.3 = $ 1,710 /ton

S 31: 12.6% / 5.4 = $ 3,780 /ton

100









33: 12.7% / 2.8 = $ 3,810 /ton

35: 15.6% / 3.9 = $ 4,680 /ton



37: 8.2% / 2.8 = $ 2,460 /ton

(feet)









38: 9.5% / 4.6 = $ 2,850 /ton

50









39: 6.1% / 2.8 = $ 1,830 /ton

Scale









41: 9.0% / 3.5 = $ 2,700 /ton

43: 4.4% / 5.5 = $ 1,320 /ton

45: 7.9% / 5.1 = $ 2,370 /ton

0









SILVIA MINE

48: 6.6% / 4.0 = $ 1,980 /ton SILL DRIFT ASSAYS

49: 3.0% / 9.0 = $ 900 /ton & GEOLOGY

51: 1.5% / 6.7 = $ 450 /ton VALUES / TON

Mo = $15 / LB

54: 1.2% / 6.0 = $ 360 /ton

55: 1.8% / 6.0 = $ 540 /ton







The Sylvia Vein is well understood to be over 800 feet in length, a minimum of

4.5 feet in thickness, and to extend at least 300 feet down the dip of the

structure. Its mineralization remains open to further exploration along its trace to

the north, to the south, and at depth. The highest-grade section of the vein,







Golden Phoenix Minerals, Inc. Page 5

measuring 200 feet in length, has been adjusted for an anticipated 30% mine

dilution, and is calculated to contain 21,550 tons of mineralized material grading

5.8% Mo. Metallurgical testing indicates an expected process-recovery-factor of

85%, suggesting that this 200-foot section of the deposit contains approximately

2,125,000 pounds of potentially recoverable molybdenum.





Sequence of Events



Golden Phoenix will initiate production at Ashdown in the following sequence:

• The mill will be constructed on private property located near the mine.

• The Sylvia Decline, which leads to the face of the Sylvia Deposit, will be

repaired and additional drift driven as needed to reach the ore body.

• Over a period of months, the Sylvia Vein will be excavated using

underground mining techniques, the ore will be milled and then

concentrated, and the concentrates will be packaged for sale and delivery.

Once the Sylvia Vein is reached, monthly production is estimated to exceed

250,000 pounds of concentrate for a period of at least seven months. The

development of the pilot mill, including completion of permitting and assembly,

and the excavation and processing of the Sylvia Vein, is forecast to take less

than12 months from start to finish.





Molybdenum Concentrate Sales



Golden Phoenix has executed a life-of-mine brokerage contract with Derek

Raphael & Company Ltd. of London to purchase all molybdenum-bearing

concentrates produced from the Ashdown mine. The molybdenum within the

mineralized body occurs naturally as molybdenite (MoS2). The MoS2 will be

separated through an industry standard flotation circuit, and the resulting

concentrates will be packaged into 4,000 pound “super sacks” for delivery FOB

the mill site. The joint venture will be paid 99% of the Metals Week Monthly

Average Dealer Oxide price, less a small roasting fee and any applicable

discounts. For reference, the April Average Dealer Oxide price is $30.37 per







Golden Phoenix Minerals, Inc. Page 6

pound. In accordance with the joint venture agreement between the partners,

net proceeds from sales will be distributed 40% to Win-Eldrich and 60% to

Golden Phoenix.





Ashdown Underground Workings









10,000 E









5000

4900

9,000 E









'









51

00

4600









4650









00









50

4750









48









47









5200

4700

4 Level



8 Lev el

Storage Building W ater

O ffice Trailer Tank

Domestic W ater W ell Low G rade

M oly Stockpile 10 Level







Shop

10,000 N p

m

M ine G rid

Du

s te









49

Wa









00

'

M oly

Or e Sto









48

ck piles









00

ev el

46 00

12 -L

ne

4650

Sylvia Decli









48

50

470 0







47 48 00

00







47

50



47

50









4900









4950

48

00

4800









48









Decline

50



4650 ' 9,000 N

49

00









Sylvia

49

50









ft

Sill Dri

470 0' 50

00







50

50

N

ASHD OW N PRO JEC T

51

00



0' 200' 400'

51









S

50









Scale (feet)









Ashdown Surface Facilities

9,000 E









Water









10,000 E

Tank

4750

4700









Low Grade

Moly Stockpile Ashdown Gold Mine

10-Level

Portable Crusher &

Crushed Rock Stockpile

p









Shop

m

Du

te









Miners Dry

as

W









10,000 N

lvia









Mine Grid

Sy

ing









49

ist









00

Ex









'









Moly

1,400 Ore Stock

Tons pi

/ ?.?? les e

Gate









% Mo Min

Fuel Storage old

48









n G el

48









dow

50









Air Compressor

Ash 12-Lev

00









La

yd

ow

4650

n Sylvia Decline

Ar

ea Pr

op

os

ed

De

0

cli

470 ne





N

Transfer Ore Stockpile

To









S

Sec entilati









Powder & Cap

&V









Magazines

ond

4750









ary n Shaft

Esc

o









0 200 400

ape









Scale (feet)

SYLVIA MINE FACILITIES







Ashdown Mill Facility







Golden Phoenix Minerals, Inc. Page 7

Launder at



A -5% grade

from mill building to pond. Tailings

Surge

A'

Tank



Thickener

Compacted

Trench Classifier

Disk

Backfill

Chain Filter

Link

Fence

Reclaim Water Tank

60 mil HDPE Liner

max vol = 13,817 gal. Concentrate

12" Reworked or Bin

Imported Liner Bedding Layer

Sump







Section A - A'

LAUNDER CONFIGURATION

South Cell Berm

Looking East

Scale: 1" = 10'-0"





C C'

8" Tailings Discharge Line



2" Reclaim Water Line



Launder

one piece

10-guage steel plate

32" wide x 8" high

welded in 8' sections









Section C - C'

42" Railing LAUNDER SECTION

B 2" Water Line

To Mill Reclaim Tank

Steel Grate Walkway B' Looking East

Scale: 1" = 2'-0"

I-beam Deck Support Steel Grate Cover

Compacted

Trench

Backfill

Chain

Concrete Collection Base

Link

5' x 5' x 6" Reinforced Slab

Fence 2" Water Line 4 - #4 Rebar, each way



30" Galvanized Culvert 12" Gravel Base

Slotted

Wrapped w/ Geotextile 60 mil HDPE Rub Sheet



Sump Pump 60 mil HDPE Liner



Section B - B' 12" Reworked or Imported Liner Bedding Layer



RECYCLE SUMP CONFIGURATION Alder Creek Ranch Pilot Mill

Humboldt County, NV

North Cell Berm

Looking East

Scale: 1" = 10'-0" Figure 11:

TAILINGS DISCHARGE

& RECLAIM WATER SYSTEM

File: Fig11_Decant_Col

Xref: SECTIONS

Drawn by: elf 01/07/05

Revised: Golden Phoenix Minerals, Inc









Ashdown Tailings Impoundment

FEE: Alder Creek Ranch









Sediment Trap

rline









U.S. BLM

Powe

ng









Monitor Well

Existi









B





Reclaimed Water Return Line

Walkway









Decant

Column



B'

rline

, Inc.



powe

era tive



e of

Coop



ch sid

ctric



on ea

y Ele



O-W

Harne



15' R-









Tailings Impoundment









Spigot

Pole 88 Spigot

Diversion Ditch









Tailings Discharge

Pipe









Office Trailer

Spigot









A

Spigot









Spigot









Cattle Tailings Discharge Pipe

Guard

300 Ton

Stockpile

Launder









C C'

ad

Ro

e ss

cc Flotation Monitor

A Reclaim Water

Plant Tank Well



Crushing Circuit

Deck Elevated 8' w/

Fuel Storage Water Tailings Surge Tank

Tank Thickener

A' Disc Filter

Classifier



Auxillary

Generator Water

Well

Diversion Ditch

Sec. 35, T45N, R28E

Sec. 2, T44N, R28E









EXPLANATION Alder Creek Ranch Pilot Mill

Humboldt County, NV

Stock Fence (around facilities) Figure 10:

Chain Link Fence (around tailings pond)

Diversion Ditch

TAILINGS STORAGE CELL

File: Fig10_AC_Tailings.dwg PLAN MAP

Cross Section Location in Figure 11

Xraster: Ashdown2.tif Revised January 2005

C C' N

0 25 50 Drawn by: elf 01/03/05

Revisions:

Scale (feet) S Golden Phoenix Minerals, Inc.









Golden Phoenix Minerals, Inc. Page 8


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