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MEI Online: Plant Operation News: North America: August 10th 2004


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:: Golden Phoenix Minerals Acquiring Mill for Phase II Operations at the Mineral Ridge Gold Mine - Higher Grade Gold Ores To Be Mined

Golden Phoenix Minerals, Inc., which specializes in the acquisition and development of deposits in the western United States that contain gold, silver, copper and other strategic minerals, announced today that it has signed two option agreements for a processing mill that will treat its high-grade gold ores from the Mineral Ridge mine. This acquisition sets the stage for Golden Phoenix to fulfill its Phase 2 plans to move into greater gold production by milling the higher grade gold ores from Mineral Ridge.

The mill, which lies just north of Lone Mountain and about 15 miles west of Tonopah, was built in about 1981 at a cost of about $7 million. It operated for nearly 4 years processing tailings from the old Tonopah silver district. During its operation, it processed up to 1,350 tons per day. When the mill was shut down for economic reasons because of falling silver prices, the operator decommissioned the facility so that it could be easily restarted when silver prices improved. Golden Phoenix plans to use the majority of the mill as it is presently designed, and will add a gravity and primary crushing circuit to handle the Mineral Ridge ore as metallurgical studies have defined. This reconditioning work along with the required permits may take up to a year before the mill can be commissioned.

Once full operations are underway, the Company plans to truck Mineral Ridge high-grade ores approximately 43 miles to the mill. These ores will have an approximate economic cut-off grade of 0.1 ounces per ton and will be mined from the Drinkwater, Mary and other defined open pits as well as the Mary underground operation. The lower grade ores from the open pits will be crushed and put on the leach pad to maximize gold production from the mine.




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