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NewsBot Date: October 6, 2005 06:08:14 PM
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Golden Phoenix Activates Funding to Construct Ashdown Molybdenum Mill; Pours Foundation
SPARKS, Nev., Sept. 29 /PRNewswire-FirstCall/ -- Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM) is pleased to announce that it has completed the foundation for its 100-ton per day flotation mill designed to process molybdenum mineralization from the company's Ashdown mine, located in Humboldt County, Nevada. The concrete must achieve a 28-day cure-strength before mill assembly can proceed.
The Company has taken receipt of 120,000 square feet (approximately 2.8 acres) of high-density polyethylene liner material to be used in the tailings impoundment, adjacent to the mill. The impoundment is being excavated by a local subcontractor who has also been retained to deliver mill feed and maintain the roadways, once the mine is in production. Specialists will install the liner as soon as excavation is completed.
With the pouring of the foundation, the mill-financing program announced on May 12, 2005 has been activated. The funding is provided by the Ashdown Milling Company, LLC, comprised of five members, two of whom are Kenneth S. Ripley and Robert P. Martin, CEO and Director of Corporate Development for Golden Phoenix, respectively.
David A. Caldwell, Director and member of the Company's Audit Committee, remarked that 'after receiving and reviewing numerous financing proposals, the Company determined that the best solution was to recruit an investor group seeded from within. This funding allows us to process the 1000-ton bulk sample using a mill designed and built specifically to handle Ashdown's high-grade mineralization, resulting in production procedures our operators can closely monitor and quickly optimize.'
The financing program is structured as a production payment purchase agreement. It provides a minimum purchase price of $800,000 to be paid to Golden Phoenix in accordance with a timetable linked to construction milestones for the Ashdown mill. The funds are earmarked for assembly and start-up of the mill facility and related costs, with a portion already committed to the foundation work.
For every dollar of production payment that is purchased, the Company has agreed to issue one share of common stock and one common stock purchase warrant. The parties will allocate $0.17 of each dollar invested to the purchase of the shares. Each warrant grants the purchaser the right to buy one common share struck at $0.20 for a period of three years. All shares and warrants will be issued with restrictions in accordance with Rule 144(a) of the Securities Act of 1933. In addition, the Ashdown Milling Company will receive 20% of the Company's share of concentrate sales until the royalty received equals, but does not exceed, the production payment purchase price plus 140%. A Form 8-K has been submitted to the Securities and Exchange Commission containing the terms of the funding.
Golden Phoenix Concludes Bonding for Ashdown Bulk Sample; Miners Drive Bypass Toward High-Grade Moly Deposit
SPARKS, Nev., Sept. 23 /PRNewswire-FirstCall/ -- Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM) is pleased to announce that it has received notification from the Bureau of Land Management that the $45,000 cash bond, posted on August 8, 2005 to secure the amended Notice of Intent allowing Golden Phoenix to take a 1000-ton bulk sample, has been approved. This allows the Company to drive a bypass tunnel, called a decline, toward the high-grade molybdenum deposit hosted in the Sylvia vein in order to extract, process, test and sell the resulting molybdenite concentrates.
To further ramp up Ashdown operations, two teams of experienced underground miners have been recruited and are working 10-hour shifts on a staggered schedule, drilling, blasting and mucking the bypass tunnel to an average width of 10 feet. A mining engineer has also been hired to provide on-site technical support to the work crews at both the mine and mill site. The engineer was previously employed at Golden Phoenix's Mineral Ridge gold mine near Silver Peak, Nevada, and will be providing design support to refine and optimize its future mine plan for Mineral Ridge as well.
Golden Phoenix Begins Phase II of Restructuring Plan
SPARKS, Nev., Sept. 2 /PRNewswire-FirstCall/ -- Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM) is pleased to report that the Company has entered Phase II of the Restructuring Plan initiated in December 2004. Phase II entails reconfiguration of the Board of Directors and the addition of engineers, geologists and executives to bring Ashdown into full-scale molybdenum production. Steven D. Craig will step down from his post as Vice President and Chief Geologist in September, and Jeffrey Tissier, a former Director, will return to the Board of Directors in October.
Mr. Craig served Golden Phoenix for the past eight years as Chairman of the Board and Corporate Secretary, Vice President and Chief Geologist. He will resign from his executive positions effective September 13, remaining as Chairman until October 15 to assist in review and selection of additional directors and officers.
'Given the progress at Golden Phoenix, I have elected to step down from my duties so I may attend to personal matters and pursue outside business interests. I feel fortunate to have helped bring the Company to a point where my departure cannot impair its momentum. I am very pleased that Jeff Tissier has agreed to return to the Board, and I will continue to assist the Company through a seamless transition.'
Robert Martin, Director of Corporate Development for Golden Phoenix said, 'The Interim Governing Board and staff extend the Company's deepest gratitude to Steve for his many years of service. He guided this Company with dedication and conviction, helping to secure the assets that provide a springboard to its future. He will be missed.'
Jeff Tissier served as a Director for Golden Phoenix from June 2004 until January 2005 when he resigned to attend to personal matters. Prior to his departure, Mr. Tissier helped initiate the Restructuring Plan currently in progress, and in October will assume the Board seat to be vacated by Mr. Craig. Presently, Mr. Tissier will advise the Board in its consideration of additional officers and staff.
Jeff Tissier received his B.S. in Exploration Geology and B.S. in Geological Engineering from the University of Nevada, Reno, Mackay School of Mines, and was employed by the minerals industry for 15 years in technical and financial positions. Mr. Tissier also became a licensed CPA and worked for a national public accounting firm where he gained experience in acquisitions and due diligence. Mr. Tissier returned to private industry to specialize in mergers and acquisitions, budgeting, and long range financial planning. This led to participation in the turn-around of a publicly traded mining company and further experience rebuilding companies. Mr. Tissier currently serves as Chief Financial Officer for a regional water authority.
Jeff Tissier remarked, 'I look forward to returning to Golden Phoenix as an outside director during what I consider the most exciting phase of its recovery. Several years ago I was privileged to assist a mining company through a similar process. Steve Craig has brought valued assets to the Company and I wish him good fortune in all his endeavors. I am pleased to join with the fine staff at Golden Phoenix to help guide its transformation and growth.'
Golden Phoenix Applies for Full-Scale Gold Mill at Its Mineral Ridge Mine; Planned Idling of Heap Leach Nears
SPARKS, Nev., Aug. 19 /PRNewswire-FirstCall/ -- Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM) has notified the Bureau of Land Management and the Nevada Division of Environmental Protection of its intent to modify the Mineral Ridge Plan of Operations (POO) to allow the addition of a full-scale milling facility at its 3800-acre gold property located near Silver Peak, Nevada. The plan calls for building an on-site mill to process the high-grade ores, supplemented by use of the heap-leach to process lower-grade material.
As part of its strategy to optimize production at the property, Golden Phoenix is preparing to place the current heap-leach operation on stand-by so as to preserve the mine's contained gold resource until it can be economically processed under the modified POO. The leach pad will be idled in the coming weeks as gold recovery drops below its economic threshold due to depletion. Personnel will remain on site to monitor and maintain the facilities and assist in development of the expanded mill and mine plans.
A comprehensive review of the past performance of selective underground mining at Mineral Ridge has lead Golden Phoenix to re-evaluate the one method of extraction that has proven to be economic: milling. Metallurgical testing by the Company and performance records from historic mill operations indicate that a gold recovery rate of 90% or greater is achievable. The Company's new three-tiered approach is to make modifications to the POO; preserve the existing gold resource until it can be economically extracted; and actively identify and explore the zones of mill-grade gold mineralization. A project timeline will be developed after additional engineering work has been completed.
Golden Phoenix Minerals, Inc. is a Nevada-based mining company committed to deliver value to its shareholders by acquiring, developing and mining superior precious and strategic metal deposits in the western United States using competitive business practices balanced by principles of ethical stewardship.
Visit the Golden Phoenix Web site at http://www.Golden-Phoenix.com/
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.
SOURCE Golden Phoenix Minerals, Inc.
