December 21, 2005

In the last two days, the drift crews report moving into harder ground and away from clay.  The new ground is a basal conglomerate that is harder and has more integrity than the red clay barrier.  This current transition zone is expected to continue for 30+ feet before arriving at the granodioritic rock near the point of intersect with the original decline.  As the ground improves, the speed of advance should accelerate.   The face of the crosscut is proximally less than 50 feet from the original decline. The crosscut must enter the original decline at an oblique angle with suffcient radius to accommodate the mucker and trucks, so additional drifting will be required further along the decline.  Mine shifts will break for Christmas, and resume just before New Years.

December 19, 2005

Winter arrived early at Ashdown last week with zero-degree temperatures at the mill and mine.  The cold got so bad, freezing occured 50 feet inside the portal and crews had to hang a thermal curtain at the entrance to try to warm things up.  When temps get that low, everything is a battle, from keeping water pumps unfrozen to starting up the mucker each morning.  On top of that, the drift crews encountered a "perched water table" at the drift face, which turned the ground to mud.  A perched water table is simply a lens of ground water that has pooled along a sendiment layer, and breaks free when miners blast into the zone. That water, coupled with the clay composite that makes up the ground along the drift-path created unstable conditions and compelled Johnny and his crew to double-set timbers.  Normally timbers are set about six feet apart.  But the weight bearing down from above necessitated doubling up the timbers every three feet.  Note the close-set timbers and muddy ground near the face.

Over the weekend, mine crews finished timbering and graveling the decline and recommenced drilling and blasting yesterday.  Old records had indicated that this clay layer would be only 10 feet thick, but it has run for 30 feet and will require more days' work before we are past it.  The red clay (shown December 1, below) has fortunately given way to a gray-black mixed clay, and indicates continued progress toward the quartz diorite which will mark the boundary layer before arriving at the original decline. 

At this pace there are still several weeks of drifting to go before we encounter the intersection point in competent rock.  The drifting has been challenging, but nothing that our teams can't handle.  Spirits remain high as the crews methodically chew through the bad ground. 

This advance is matched by progress at the mill, where our subcontractors, Gamma Electric and Michael Clay Constructors, both out of Winnemucca, have hung a high-volume propane heater and wired interior lights, and are now awaiting a steel delivery to begin construction of the mezzanine-level which will house the Holo-Flite dryer and Supersack bagging equipment.  Following that, the mill building can be enclosed on its south and east sides. making it a warm and bright place in which to complete the detail work which comprises the final commissioning, expected to take several weeks.

Click this link to view additional images of the Ashdown mill site under construction.

December 4, 2005

Below is a close-up photo of the face of the new decline showing the "red brick clay" currently encountered by our mining crews. 

The ground continues to be mixed, and must be timbered.  This next photo has been taken from the face looking back toward the entry.  In the center is the bucket of the Elmac mucker.

From past maps we expect to drift into another basal conglomerate layer for about 65 more feet before encountering a comparable length of quartz diorite leading down to the intersection point of the original decline.  Earl Harrison expects that once we hit the quartz diorite we should have good ground continuity all the way to the point of break-through into the original decline.  Some water has been encountered to this point, and more is expected, but the original decline has been pre-evaculated and should be fairly dry at the point of entry.  It is impossible to project the condition of the original decline until we enter it, but given the nature of the host rock it should be in reasonably good shape.

Ken Ripley continues to direct the completion of the mill, leading his team in wiring and plumbing the facility.  This frees up Earl to lead one of the mining crews.  Earl and Johnny's teams will be taking turns driving the last stretch of drift in the coming weeks.  Below is a photo of Earl (center) and the two experienced miners who make up his shift crew.

November 23, 2005

In the course of building a mine, and rebuilding a company, it is easy to get wrapped up in the daily flow of statistics and objectives.  What is sometimes forgotten is that this is a very human endeavor, calling upon the ingenuity and fortitude of the many people who make up the Golden Phoenix team.  Here are a few of photos that remind us that every challenging undertaking requires dedicated and skilled individuals.  Click this link to view additional images of the Ashdown mill site under construction.

Ken Ripley and Earl Harrison pause during mill assembly.  They are both hands-on managers, leading their men by example; they are capable of performing every job they expect from their crews.

Eddie gets a girlfriend.  Eddie Morris is not only the owner of the land on which we are building the moly processing mill, but he is an American icon.  He fought in two wars, was a cowboy and a farmer.  At 84 he is still active.  And ever since his cataract surgery he says he can see girls better than ever.  Kelly, on loan from Rob Martin, is Eddie's latest catch.  Happy Thanksgiving, Eddie.  May you enjoy many more.

November 22, 2005

November 13, 2005

The new drift, or by-pass, was begun on September 9, 2005.  It is being developed by two three-man crews under the direction of Mine Manager, Earl Harrison. The bypass was started 70 feet inside the pre-existing adit, which had been dug 23 years earlier by a previous operator. 

As reported in prior company news releases, the adit has been fully rehabilitated and fire proofed, and an explosives magazine has been constructed inside the 12 Level that extends northeast from the original decline. 

In driving the bypass, our miners have been using hand-held jacklegs to drill the face in order to load explosives for blasting.  Blasted material is removed by an Elmac mucker with a 2-ton bucket and an Elmac 10-ton truck.  The drift dimensions are approximately 10 feet wide by 10 feet in height.  It is timbered using 8” x 8” Douglas fir timbers and 3” x 12” lagging.

Initially, the drift encountered loose volcanic tuffs for approximately 200 feet.  These are compacted sedimentary layers that have little structural integrity.  The miners then encountered mixed ground including a composite of clay and boulders, then some competent quartzite, followed by more composites.  This has required extensive timbering.  The result is that progress has varied between 2 and 15 feet per day.  To date, over 360 feet of drift has been completed.  We have driven deep enough and far enough in order to have by-passed the initial collapsed portions of the original Sylvia decline, and are now in position to cut an access passage, or crosscut, toward the original decline at a beneficial angle that crosses, rather than follows, the composite ground layers. This is expected to aid in the rate-of-advance.  In addition, a jumbo, which is a mechanized drilling rig used in place of hand-held jacklegs, has been purchased and is being commissioned to start service this week.  The jumbo is expected to accelerate the drilling time by 30%, and also adds an additional level of safety to the mining process. 

The current plan is to run a crosscut from the 220-foot marker of the bypass so as to intersect the original decline at a location that past data indicates has a high-percentage chance of being free from cave-ins and is closer to what the former operator has recorded as hard (and therefore ‘good’) ground.  This is a modification of the initial plan, which was to drive directly to the section of the original decline that is proximal to the face of the target moly deposit.   It is estimated that by intersecting the original decline sooner, access to the face of the moly deposit can be accelerated.  The way to confirm this is to proceed.  The Company continues to strive to reach the target moly deposit within this calendar year, and the composition of the ground encountered between the working face of the crosscut and the original decline, plus the condition of the original decline when intersected, will determine our rate of progress.  To date, the crosscut has advanced about 65 feet and the miners report being in better ground, consisting of cemented tuffs and basil conglomerates. This ground has sufficient structural integrity to allow our crews to suspend timbering in favor of rock bolts and wires.  This further aids in the acceleration of daily progress, as anticipated.

The mill construction remains on schedule, with the heavy equipment having been set on the foundation and the light equipment being added at this time.  The mill walls and roof have been staged on site, and are scheduled for installation as soon as the 14-foot-wide thickener tank has been set.  A water-well, located 50 feet from the mill, has been drilled to a depth of 150 feet, and will provide mill water at an estimated rate of 30 gpm.  The tailings impoundment excavation is complete except for perimeter work, which is scheduled to be completed by the 18th of November.  At current rate of progress, it will be ready to accept the liner membrane that will be professionally welded in place before month-end.  With that, plus completion of the walls and roof of the mill, there will remain wiring, plumbing and minor equipment additions before the mill will be ready for commissioning.  

Numerous shareholders call or write to ask when the Ashdown mine can begin production.  The answer to that question is as soon as

It is technically feasible to have this work done before year-end, but the determining factor remains the nature of the 200 feet of ground that must still be crossed and the condition of the back portion of the old decline when entered.  These factors are unknowable at this time, and will be dealt with as we encounter them.  We have sufficient manpower and equipment to get the job done in the above time-frame, given reasonable conditions and provided no unexpected conditions are encountered.

November 4, 2005

The Water Pollution Control Permit has been issued, allowing for the completion of the mill facility. The 100-ton mill was designed to be easily assembled on a compact foundation.  The heavy equipment, including the ball mill, flotation cells and concentrator are being installed first, to be followed by the steel walls and roof. The mill facility includes an 80,000 square foot tailings impoundment, scheduled for completion this month.

Click this link to view additional images of the Ashdown mill site under construction.
 

September 29, 2005

The Ashdown flotation milll site is located approximately two miles from the mine.  The mill's concrete foundation, including the footings, stem walls and floor slabs, have been poured and are now curing.  Positioning of the mill equipment and construction of the building will proceed once the concrete has cured and the Water Pollution Control Permit and Reclamation Bond are fully processed.

A tailings impoundment, or pond, is scheduled to be dug near the mill building.  The pond will be lined with a polyethylene material to prevent leakage into the ground.  The 120,000 square feet of liner material has been delivered to the mill site and will be installed by certified technicians. Below, the rolls of liner material are being unloaded.

September 26, 2005

With the adjudication of the $45,000 bond posted in August, the Company has been permitted to extract the 1000-ton bulk sample from the targeted Sylvia moly deposit.  A new decline has been started to bypass caved-in sections of the orginal Sylvia decline, leading to the deposit.  The bypass is about 10 feet in width and has progressed about 20% of the distance to the moly deposit; see photo below:

The Sylvia portal has been completely rehabilitated and fireproofed; see below:

Additional work has been preformed to upgrade past work, such as properly shotcreting sections of the decline to increase stability.  Below are photos of one section of the portal area that has been reinforced and shotcreted.

Before  After  

Additional improvements include the construction of an explosives magazine which is mandated by safety rules.  The magazine has been located underground, see photo below:

Outside the mine workings, the Company has established the dewatering well.  The photo below shows the preparatory work prior to hard piping the well. 

Equipment has been brought to the mine, including a five-yard mucker and Elmac haul truck. Three-phase power has been strung to the mine entrance; see below:

Work continues with two crews of miners running staggered 10-hour shifts to drill, blast and muck the new bypass toward the target deposit.
 

September 2, 2005

August 15, 2005

The BLM has OK'd a 1000-ton bulk sample program for Ashdown.  This allows the Company to drive drift to the face of the targeted ore-shoot and remove 1000 tons of high-grade molybdenite-bearing material.  This material can then be metallurgically tested, milled and sold. The purpose of this program is to allow the Company to gather information regarding its molybdenum deposit in order to facilitate the start-up of full-scale operations once the balance of permits are in hand. A $44,600 bond has been posted and work can commence on the program as soon as the bond is processed. In order to access the moly sample, it will be necessary to drive a bypass (called a drift) around existing cave-ins and to the ore-shoot.  This work is estimated to take between 8 and 12 weeks.  Company analysts estimate the ore-shoot to contain 21,550 tons of elemental molybdenum grading at an average of 8%, equal to 160 pounds per ton.
 

July 28, 2005

During the past two months work has continued on the Ashdown Mine in preparation for receipt of final permitting and initiation of full operations.  The Sylvia Decline continues to be dewatered at a rate of 16,000 gallons per day.  This water is sampled every 250,000 gallons using a Profile 1 test to ensure its quality during release.  The portal to the Sylvia Decline is drying out and the ramp area has been graded and graveled.  Portal sets (supports) have been re-timbered and steel sills installed to maintain the structural integrity of the entry area.  The portal has been fireproofed, as required by law.

Harney Electric has been contracted to bring 3-phase power to the mine, and should be completed within one week.  A blasting powder magazine is being installed underground.  A new mucker and ore hauler have been delivered.  Two experienced miners have been added to the staff.  And in Denio Junction, a man-camp has been set up and is currently housing five miners, with plans to house 20.

Below are six images - showing the Sylvia portal, interior, and stockpiles - before (left) and after (right) the current work was completed.

One of the primary considerations in this initial work was the condition of the existing decline that was excavated 25 years ago.  Inspections have been conducted of the existing cave-ins within the decline, which begin about 130 feet inside the Portal.   Indications are that extensive collapse of portions of the decline has occurred from years of flooding.  At present, the Company plans to drive a drift (blast an access passageway or crosscut) bypassing the cave-ins and tracking directly toward the face of the target moly chute, starting from inside the decline.  Preparations are being made to begin drilling and blasting as soon as final permission is received.  The Company continues to work closely with the regulatory agencies to secure the necessary approvals prior to proceeding with each successive step.