View
18
Download
2
Category
Preview:
Citation preview
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
T46NT45N
36
T46NT45N
R28
ER
29E
R29
ER
30E
R29
ER
30E
3534 7
18
19
30
31
15
242322
27 26 25
County Road
11 12
14
13
23 24
14 13
11 12
1
26 25
2 1
R28
ER
29E
R29
ER
30E
2
36
FLOTATIONMILL SITE
NV 140
ASHDOWNPROPERTY
SYLVIA MINE
Golden Phoenix Minerals, Inc
SYLVIA MINE &
ALDER CREEK FLOTATION MILL
Ashdown ProjectHumboldt County, NV
Scale (miles)
10 2
S
N
Reno
Las Vegas
Tonopah
Winnemucca
Denio McDerrmit
NV 140
I-80
I-80
I-80
US
95
I-15
US 93
US 95
US 6
US 50
US 95
Alt U
S 93
US
93
US 95
Elko
ASHDOWN MINE
3
10
No Scale
34 35
3 2
R28
ER
29E
T45NT44N
8
17
20
29
32
6 5
7 8
18 171
S
N
Cou
nty
Roa
d
ALDERCREEKRANCH
P roject Boundary
ASHDOWNPROJECT AREA
ASHDOWNPROPERTY
ASHDOWNPROJECT
T46NT45N
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
Scal
e (f
eet)
50
100
0
SILVIA MINE SILL DRIFT ASSAYS
& GEOLOGY
VALUES / TONMo = $15 / LB
S
N26:
28:29:
31:
33:
35:
37:38:
39:
41:
43:
45:
48:49:
51:
54:55:
0.52% / 3.0 = $ 156 /ton1.8% / 3.5 = $ 540 /ton5.7% / 3.3 = $ 1,710 /ton
12.6% / 5.4 = $ 3,780 /ton
12.7% / 2.8 = $ 3,810 /ton
15.6% / 3.9 = $ 4,680 /ton
8.2% / 2.8 = $ 2,460 /ton9.5% / 4.6 = $ 2,850 /ton6.1% / 2.8 = $ 1,830 /ton
9.0% / 3.5 = $ 2,700 /ton
4.4% / 5.5 = $ 1,320 /ton
7.9% / 5.1 = $ 2,370 /ton
6.6% / 4.0 = $ 1,980 /ton3.0% / 9.0 = $ 900 /ton
1.5% / 6.7 = $ 450 /ton
1.2% / 6.0 = $ 360 /ton1.8% / 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
4800
4800
10 Level
12-Level
Sylvia Decline
4 Level
WaterTank
5000
5100
4600
46 50
4800
4850
4750
4700
4600
4850
4900
4950
5000
4650'
4700'
5050
5100
5150
5200
4900 4950
4700
4750 4750
4800
4900'
4700
4900'
10,000 NMine Grid
9,000 N
Low GradeMoly Stockpile
Moly Ore Stockpiles
Shop
4650
4800
4750
Storage BuildingOffice TrailerDomestic Water Well
Waste Dump
ASHDOWN PROJECTN
S Scale (feet)
200'0' 400'
9,00
0 E
10,0
00 E
8 Level
Syl
v ia
Dec
line
Sill
Drif
t
Ashdown Surface Facilities
Ashdown Gold Mine
12-Level
Sylvia Decline
Ashdown Gold Mine10-Level
Gat
e
WaterTank
4750
4850
4700
4750
4800
4900'
4700
10,000 NMine Grid
9,00
0 E
Low GradeMoly Stockpile
Moly Ore Stockpiles1,400 Tons / ?.?? % Mo
Shop
Powder & CapMagazines
Portable Crusher &Crushed Rock Stockpile
4650
Transfer Ore Stockpile
Exist
ing S
ylvia
Was
te Dum
p
Fuel StorageAir Compressor
Miners Dry
SYLVIA MINE FACILITIES
N
S
Scale (feet)
2000 400
10,0
00 E
Proposed Decline
Laydown Area
To Secondary Escape
& Ventilation Shaft
Ashdown Mill Facility
Golden Phoenix Minerals, Inc. Page 7
2" Water LineTo Mill Reclaim Tank
Steel Grate Cover
2" Water Line
30" Galvanized CulvertSlotted
Wrapped w/ Geotextile
Sump Pump
42" Railing
Steel Grate Walkway
I-beam Deck Support
Concrete Collection Base5' x 5' x 6" Reinforced Slab4 - #4 Rebar, each way
12" Gravel Base
60 mil HDPE Rub Sheet
60 mil HDPE Liner
12" Reworked or Imported Liner Bedding Layer
Reclaim Water Tankmax vol = 13,817 gal.
TailingsSurgeTank
Thickener
Classifier DiskFilter
ConcentrateBin
Section A - A'LAUNDER CONFIGURATION
Section B - B'RECYCLE SUMP CONFIGURATION
Launder at-5% gradefrom mill building to pond.
CompactedTrenchBackfill
CompactedTrenchBackfill
60 mil HDPE Liner
12" Reworked or Imported Liner Bedding Layer
ChainLink
Fence
A A'
B B'
ChainLinkFence
Section C - C'LAUNDER SECTION
8" Tailings Discharge Line
2" Reclaim Water Line
Launderone piece
10-guage steel plate32" wide x 8" high
welded in 8' sections
Alder Creek Ranch Pilot MillHumboldt County, NV
TAILINGS DISCHARGE& RECLAIM WATER SYSTEM
SECTIONS
Figure 11:
Golden Phoenix Minerals, Inc
C C'
Looking EastScale: 1" = 2'-0"
South Cell BermLooking East
Scale: 1" = 10'-0"
North Cell BermLooking East
Scale: 1" = 10'-0"
File: Fig11_Decant_ColXref:
Drawn by: elf 01/07/05Revised:
Sump
Ashdown Tailings Impoundment
Golden Phoenix Minerals, Inc.
TAILINGS STORAGE CELLPLAN MAP
Revised January 2005
S
N
Alder Creek Ranch Pilot MillHumboldt County, NV
Scale (feet)
0 25 50
Figure 10:
Tailings Discharge Pipe
Tailings Impoundment
Sec. 35, T45N, R28ESec. 2, T44N, R28E
FEE
: A
lde r
Cr e
e k R
a nc h
U. S
. B
L M
Har
ney
Elec
tric
Coo
pera
tive,
Inc.
15' R
-O-W
on
each
sid
e of
pow
erlin
e
Pole 88
Monitor Well
Exis
ting
Pow
erlin
e
Crushing Circuit
Sediment Trap
Decant Column
Reclaimed Water Return Line
Spi
g ot
300 TonStockpile
AuxillaryGenerator
Fuel Storage
FlotationPlant
WaterWell
WaterTank
Div
ersi
on D
i tch
Office Trailer
File: Fig10_AC_Tailings.dwgXraster: Ashdown2.tif
Drawn by: elf 01/03/05Revisions:
EXPLANATION
Stock Fence (around facilities)Chain Link Fence (around tailings pond)Diversion Ditch
Cross Section Location in Figure 11
Laun
der
Deck Elevated 8' w/Tailings Surge TankThickenerDisc FilterClassifier
MonitorWell
Wal
kwa y
Tailings Discharge Pipe
Spi
g ot
Spi
got
Spigot
Spigot
Acces
s Roa
d
Diversion Ditch
CattleGuard
A
A'
B
B'
C C'
C C'
Reclaim Water Tank
Golden Phoenix Minerals, Inc. Page 8
Recommended