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