05May5 Ashdown Mine Rpt

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


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.


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 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,


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


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


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


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05May5 Ashdown Mine Rpt