December 8, 2006

     Rob Martin stands next to Golden Phoenix's Ashdown display at the Northwest Mining Association's annual meeting held in Reno December 6, 7 and 8.  President Dave Caldwell and Director Corby Anderson, who are trustees of the NWMA, were co-chairs of this year's conference.  Attendance was at record levels for the event which was held at the Nugget Resort in Sparks.

     The NWMA was founded in 1895, and represents mining companies and technical support providers to the industry throughout the nation and internationally.  Our display, which included samples of our high-grade molybdenite, was very well received.  Geologist Jonathan Sprecher, gave a well-attended talk on the history and progress of the Ashdown project.

December 1, 2006

     On Tuesday, the mill was fired up to begin the process of adjusting the grind and chemistry.  The mill feed is coming from the South Sylvia Zone and is of very high-grade.  Technicians have set up reagent feeders, and part of the metallurgical process now includes the use of cyanide to depress the copper pyrites.  The mine is ramping up to provide sufficient mill feed to keep the mill operating and allow the mill staff the time to make production adjustments.

    On Wednesday, the production tests resulted in high Mo concentrations and lowering copper percentages.  The goal is to generate a concentrate that meets specifications for sale (50% Mo or higher) and can be dried, bagged and shipped, at the same time protocols for control, monitoring and testing are established throughout the production cycle. Fine tuning of the milling equipment and numerous small adjustments continue, as the staff builds its learning curve. 

November 21, 2006

     Johnny, Ed and Terry take a short break from their work in the Sylvia South Zone.  This underground crew is blasting and slushing the moly vein, working up-dip to build out the initial raise.  The raise is being split offf into left and right stopes, and miners will be scramming along the vein and slushing the material down chutes to the loading area below.  The work is focused on staying within the high-grade structures, which are visually determined at the face.  Note the mineralization in the upper left area of the photo.  Much of the bue-gray coloration denotes molybdenite, of which similar samples have been assayed to show grades of 5-20% Mo.  Also note the care with which the working area has been framed.  The timber work is essential to stabilzing the workings.  While the hanging wall and foot wall are generally competant and hard as a miners head, the ground can be blocky and requires support in select areas.

      Earl is seen, below, sitting in front of a working face.  Note the workmanship of the timbering, as the crews develop the raise and load out areas methodically.  High-grade material, with which to feed the mill, is being stockpiled.  Because this work week is shortened due to Thanksgiving, the crews have been concentrating on building up a supply of mill feed with which to fire up the mill next week.  Mill crews continue to work with the metallurgists to adjust the mill chemistry and processing circuits in preparation for production runs.

November 13, 2006

     The BOD stands at the head of the high-grade workings in the South Zone during their recent board meeting held at the mine.  From left: Corby Anderson, Ron Parratt, Jeff Tissier, Kent Aveson and Dave Caldwell.  This area has been constructed and timbered so as to allow access by truck for loading of high-grade material.  The Sylvia vein is located above and to the left of the directors, and extends down and to the right.   Access to the face of a portion of the vein is via a ladder to an overhead platform.  From there the vein is revealed as an approximately five-foot wide band of grayish mineralization (see photo below of Jeff Tissier illuminating the interface between the vein (lower right) and the hanging wall).

     The photo below shows the mucker backed in to where loading trucks will receive mill feed via chutes from above.  The extensive timbering is designed to stabilze and secure the working area, which is the focus of material extraction now and during the coming weeks and months. 

     As for the guys that do the real work, from left below, Jason, Earl and Gary take a break on the bucket of the mucker in the heart of the high-grade zone.  Earl's men have completed the work to set up the chutes and load-outs necessary to support continuous production of mill feed from this area.

November 12, 2006

  With the arrival to the mill of the first high-grade mineralization from the Sylvia South Zone, the Ashdown staff has turned its attention to the science and art of making a molybdenite concentrate that meets international industry specifications. The mill feed arriving from the crusher to the ball mill last Saturday was estimated to average 8-10% Mo. The result, as it was moved through the mill circuits was what you see in the photo, above. This froth contains a high concentration of moly together with a number of other minor constituents such as chalcopyrite. To meet spec, the final product will contain a minimum of 50% Mo, and certain other minerals must be "depressed" to varying percentages. Specimens taken from last Saturday's concentrates are being analyzed by outside labs to determine the makeup and structure of the material in order to begin to design the most efficient methodologies to process and deliver a quality product. This requires a combination of scientific measurement and analysis together with the application of experienced "hands-on" mine and mill practices. The team's focus is on making saleable production happen as soon as possible, in an accountable and verifiable manner.

  Inside the mine, crews are blasting a raise through the high-grade vein. Mineralized material is being stockpiled while the workings are developed. Some timbering is involved, and once the raise has advanced, scrams can be run, left and right, along the vein structure.

November 6, 2006
   

    GPXM Director, Corby Anderson, visited the mill last Saturday to observe and advise the milling team regarding the handling of the first high-grade material to be test-processed.  The mill was operated for approximately six hours and produced over 1500 pounds of concentrates.  The above photo shows Dr. Anderson at the cleaner cells with molybdenite froth being skimmed and pumped to the leaf filter which extracts a majority of the moisture, and from there to the hot-oil dryer.  The cons will be studied by Dr. Anderson and Earl Harrison and other staff, as part of the tuning process. 
     Dr. Anderson was present at the mine to participate in a regular board meeting along with Directors Jeffrey Tissier, David Caldwell, Ron Parratt and Kent Aveson.  The Board also toured the mine and visited the South Zone where crews have completed timbering the crosscut leading to the highest-grade sections of the the Sylvia Drift.  Photos of the vein and workings will be posted later this week , as crews commence blasting and slushing the high-grade mineralization.

November 1, 2006

     The photo above shows the right rib and down-dip extension of the high-grade Sylvia moly vein in the South Zone.  Crews have finished timbering the Sylvia drift where the crosscut intersects the high-grade, and are preparing to drill and blast the up-dip raise shown in the two photos below.   The miners will be careful to minimize dilution and maintain grade as they start the methodical removal of mineralized material with which to feed the mill.

     While the underground crews work at the face of the deposit, a drill rig (below) is drilling a 12-inch service hole several hundred feet to intersect the southernmost point of the mine, near the current workings.  The hole will be used to supply a refuge chamber with air, water, food and communications in the event of an entrapment, providing a safety solution until a secondary escape is developed.

October 18, 2006

     In an effort to accelerate the development of the South Zone, a decision was made last week to add a cross-cut (labeled "Access Drift") to the development plan and drive it to the center of the highest of the high-grade mineralization within the Sylvia drift.  This work has been completed.  The cross-cut allows direct access of men and equipment from the decline to the 15% mineralization, and once the cross-cut has been stabilized and set up for mining, it will be used to transport high-grade material out of the drift and to the mill.  Plans remain to develop the other stopes and raises indicated in the diagram, and this additional cross-cut will also aid in that process. 

October 13, 2006   

     Below, Ashdown Safety Officer Ben Viljoen (right) describes a mining concept to noted investment analyst and mine researcher, Mike Kachanovsky.  Mike flew in from Toronto specifically to tour the Ashdown property in prepartion for writing an in-depth analysis.

October 4, 2006

    As reported earlier, in mid-September crews broke through to the original decline leading to the South Zone.

     The crews then proceeded to enlarge and timber the opening in preparation for bringing equipment and material into the decline.  Johnny is seen below with the old decline to his back.

     This work occured just north of the South intersection where the old decline continues south while a crosscut heads east approximately 40 feet and then bends south again to become the Sylvia drift, running parallel with the decline.  It is along the Sylvia drift that the highest grades of mineralization have been located and recorded to date by the previous operator.

     Crews have secured the intersection and are completing wiring and bolting the back.  The decline is clear all the way to its southern face, and during the following week and a half, crews will finish securing the remaining section of the decline, installing utility lines, removing water, etc.  The miners then plan to drive about 35 feet of cross-cut plus 35 feet of raise from a southern section of the decline in a westerly direction toward the Sylvia drift, approaching the vein from beneath.  This will provide access by heavy equipment for the removal of mill feed, initially under the bulk sample permit. Once the Plan of Operations has been issued, mining can be ramped up to a full-scale level.  

     During this period, a drill rig has been contracted to sink a 12-inch casing from the surface to a point adjacent to the decline in order to provide ventilation, communications and support for a second refuge chamber to be constructed as a safety measure.

     The following are images of the Sylvia vein, taken from inside the drift.  The mineralization visually reported by the crews is congruent with the logs and maps from the prior operator, and appear to indicate that the size and grade of the deposit is in line with projections.  This will be confirmed through sampling and assaying as the project moves into its production phase later this month.  In the photos, the molybdenite mineralization can be seen as large gray-blue bands of material within the mother rock.

Mine Manager Earl Harrison

Economic Geologist Jonathan Sprecher, standing at the southern face of the Sylvia drift.  Moly mineralization is visible at this location, indicating that the strike is open to the south and that the drift was stopped before locating the southern terminus of the vein.

Earl with molybdenite boulder. Note the moly vein in upper right hand of photo and the accumulation of sloughed molybdenite below.

This photo gives some indication of the size and slope of this portion of the vein, running from the upper left to lower right of the photo, behind Earl.

September 19, 2006

     CEO Ken Ripley is shown examining the quartz vein (seen as white material) which comprises a small, lower-grade portion of the high-grade Sylvia Vein located in the South Zone of the Ashdown target deposit.  Ken is standing in the Sylvia drift, about 100 feet in from the intersection where the South Zone cross-cut branches off from the old decline. From this point, the high-grade moly strike heads south for hundreds of feet, increasing in grade as it moves south.  This visit to the drift is preliminary, and next, crews will be working to complete the removal of standing water, secure and reinforce sections of the intersection, and pull utility and ventilation lines forward.  An initial visual inspection of the old decline shows it to be in excellent condition several hundred feet toward the south end of the strike zone.

September 18, 2006

     The mining crews at Ashdown have broken through to the original north-south decline just above the junction with the high-grade South Zone.  The area of intersection is a low spot and will require the final removal of several feet of water which is pooled around the hole.  As the dewatering is completed, crews will be able to access the old decline and assess its condition before advancing toward the South Sylvia vein.  Mining continues in the North Zone, and the fine ore bin at the mill has been refilled in preparation to process the next test round of moly concentrates.

September 6, 2006

     The mill is shown above with the completed drying room which houses the double auger dryer and oil heater unit. Below, Jason demonstrates the operation of the dryer unit to Dave Caldwell, Swede Larson and Clint Murphy.  Behind the double auger is the cooling conveyor which will transport the dried concentrates to the supersack rack for filling. 

     Below: The leaf dryer  in operation.  The dryer accumulates moly concentrates on filter disks and removes a large portion of the moisture. 

    The leaf dryer is operating very efficiently and there is more moly than space to put it (see below).

     Above: Dave inspects the staging bin adjacent to the dryer room.  It is fed by conveyor, which can direct concentrate to either the bin or directly to the dryer.  Once the metallurgical testing phase is completed and commercial production and bagging begins, this bin will allow the control of feed to the dryer depending on the pace of moisture removal. 

August 16, 2006

     Donald Prahl, Golden Phoenix's Vice President Operations, seen here at headquarters studying Ashdown maps.  Don has relocated from Minnesota to Denio, Nevada to support Mine Manager Earl Harrison in bringing the mine to full production.  Earl will continue to lead the operations of the mine and mill, and report to Don. 

     The Humboldt County Building Department has granted provisional authority for the Ashdown Mill to begin operations in advance of administrative processing and issuance of the Occupancy Permit.  The permit is expected within the next few weeks.  The provisional authority granted allows the mill staff, under the direction of Earl Harrison, to ramp up to full-scale testing and trials of the crushing, grinding, and flotation circuits using run-of-mine material. While every component of the mill has previously been run and tested separately, the focus now shifts to the integration of all systems, and the fine-tuning of the equipment.  Concentrates will be generated as a product of these trials, which will provide the baseline information necessary to dial-in the chemistry and metallurgy necessary to produce a final product that meets commercial specifications.  The final product will be 50% Mo or higher, and individual metal “contaminants” such as copper, lead, and zinc will be suppressed to specified levels.

     Initial tests of the preliminary concentrates generated through only the unit cells and rougher cells (and not the cleaner cells) have been assayed and show highly efficient recoveries of molybdenite (see above).  The systems have been modeled for simplicity of operation and total flexibility, allowing the slurry, called pulp, to be directed through the mill in one of a combination of routes.  This will facilitate quality control once the mill and mine are up to full capacity.

     Under the 1000-ton bulk sample permit, the mine has been further developed to allow for removal of mineralized material in the North Zone. 

     This material (see above) will be stockpiled on the ore pad adjacent to the mill, which currently holds several hundred tons of run-of-mine rock.  The fine ore bin is filled, awaiting the start-up of the mill later this week.  Underground crews continue to drift parallel to the old decline, heading south toward the South Zone high-grade.  The plan is to drift through granitic diorite rock and then reenter the old decline and continue ahead to the mineralized zones.  Following water removal from the old workings in the South Zone and once draw points and raises are in place, a steady supply of the 1000-ton sample material will ramp up, with the mill operating at a schedule designed to keep pace with mine output.  Concentrates can be dried, bagged and sold during this period, which is the top priority of management.  Full and standardized production will continue to be enhanced, requiring additional men, working faces and mine development, which are planned for this fall along with finalization of the Plan of Operations Permit.

     The transition from building the mine and mill to operating it on a full-scale commercial basis has been in process for the past four weeks and is anticipated to take several more months.  However, production and sale of concentrates can occur on an ever-increasing basis, as the Occupancy Permit is issued and bonding is posted and adjudicated.

Millwright, Jeff Ydiando, is seen here adjusting the unit cells.  Note the presence of molybdenum-coated froth (pdf blowup). The equipment is being worked on in advance of operational start-up, which is awaiting the receipt of a Humboldt County Occupancy Permit. Final inspection for the Occupancy Permit is scheduled for next week. 

Jason Layton is fine-tuning the rougher cells installation, which is part of the flotation process.  Once operation can be commenced, the unit cells, rougher cells and cleaner cells will perform in a cascading sequence to separate, purify and concentrate the molybdenite.  This week, mill staff have been installing reagent meters thoughout the system, which are used to control the introduction of chemicals used to supress contaminates such as copper and zinc. 

Ben Viljoen is standing on the newly installed grizzley.  It replaces the older grizzley that was creating a bottleneck at the crusher. The grizzley is used to separate out the oversized boulders.   It's improved design prevents blockages and has increased the operating capacity of the crushing circuit by 200%.

Inside the mine, our crews have completed the stope and draw point for our first scrams in the North Zone.  The photo shows the moly at the working face, and mineralized material is now being removed.  At the same time, crews are blasting their way south, parallel to the decline leading to the South Zone.  Shears and cave-ins inside the old decline have required drifting around the weak points.  The crews are roughly 180 feet from the South Zone mineral target and plan to re-enter the old decline and wire and bolt the remaining sections in the coming weeks.

July 12, 2006

CEO Ken Ripley guides mining professional, Don Prahl, on a tour of the completed Ashdown mill.  This shot was taken from the top of the fine ore bin, and shows the first and second stages of the crusher adjacent to the ore pad on the left.

Ken is seen standing next to the recently installed power poles linking the mill to the commercial power grid.  The transformers, substation, and hook-up has been completed in conjunction with Harney Electric, and the installation has passed final inspection.  The mill building has also been inspected for its Occupancy Permit by Humboldt County, resulting in a short list of minor modifications, which are being made by the mill staff prior to sign-off.

At the mine, Earl Harrison, Mine Manager, is seen standing next to a portion of the Sylvia Moly Vein located in the North Zone.  Earl and his crews are completing the stopes and raises needed to start  extracting mineralization for mill feed.  The raises are elevated access passages that allow the blasted vein material to be loaded into trucks with the assistance of gravity.  While Earl sets up to commence mining the North Zone, his men are also wiring and bolting the original decline leading to the South Zone.  That work will continue over the coming weeks. 

The 30-day public comment period for the Environmental Assessment, which is required prior to issuance of an approved Plan of Operations (POO) by the BLM, has ended.  To date, only two public comments were received, and both were in support of the project.  The BLM now processes the POO, which involves a number of administrative steps.  Additional bonding will be required, with a final amount to be determined, adjudicated and posted, over the coming weeks.  The mine continues to operate under its pre-existing 1000-ton bulk sample permit until such time as the full-scale mining approval has been completed.  Once the Occupancy Permit has been issued for the mill, the next step will be to commission the mill and continue the test processing of molybdenite that had been initiated last month.

June 27, 2006

This photo shows the remarkable condition of the original decline linking the North Zone to the South Zone.  Our crews broke through into this section of  the decline after several weeks of drifting around a cave-in.  What they found was a 25 year old decline in excellent shape.  Note the intact radiused I-beams and lagging boards.  From this point, as far as can be seen, the decline is in comparable condition.  These several hundred feet of decline leading to the South mineralized zone will require wiring and bolting and possibly some additional clean up.  Crews will be working on the decline at the same time that other crews will be preparing the raises and scrams for bulk sampling the North Zone.  A report, prepared by one of our Technical Support members, Ed Falk, describes the past three weeks activities and direction (pdf). 

At the mill, we are standing by for the electric company to make final connections between the newly installed transformer and distribution panels.  Following that, a final inspection by Humboldt County is expected to result in approval of the mill for operations.  Soon after, the mill will receive its first feed, intended to clean out the equipment and dial in the necessary adjustments.  It is anticipated that a series of mill processing cycles will be made to fine-tune the chemistry needed to produce a moly concentrate that meets spec.  The shakedown of the mill is expected to coincide with ramp up of initial mining activity at two working faces of the Sylvia Vein.  This next period of time will be a trial-and-error process, intended to build knowledge of how best to optimize the mine and mill in order to generate a viable product efficiently. 

June 6, 2006

This photo shows the recently completed fencing which encloses the tailings impoundment.  The flotation mill is seen in the background with the conveyor and top of the fine ore bin behind it.

The water level in the impoundment has been brought up in preparation to begin commissioning of the flotation circuits in the mill.  The fence is required by the rules to protect wildlife from entering the pond.
 

May 19, 2006

One of our millwrights, Jeff Ydiando, is seen here putting the finishing touches on the ball mill alignment mechanism.  The ball mill was run yesterday for an extended period, and performed perfectly.  The next step in pre-commissioning the mill will be to operate the individual banks of flotation cells.  The water level in the tailings pond is being raised in order to fill the flotation cells and power-up their circulation pumps and bubblers.

At the mine, the underground crews are drifting under the Sylvia vein in preparation to put in drawpoints, working stopes and scrams in the North Zone. Because of the unexpected quantity and quality of mineralization encountered in the North Zone over the past three weeks (see photos below), a decision has been made to start bulk sampling there, while continuing to clean up access to the South Zone.  The miners are in good rock, and are drifting bald-headed (without having to timber) at this time. While the workings are being developed to sample the North Zone, new drift will be driven to intersect the original decline at a point expected to be free of cave-ins and water.  The plan is to rehabilitate the original decline in order to access the South Zone. This work will continue over the coming days and weeks.
 

May 17, 2006

The above samples came from an area in the North Zone very near the center of the map.  They were part of the high-grade lens shown in the two photos below.  They assay at 45.7% elemental moly (or 73.0% molybdenite).  This is considered close to pure moly disulfide. By comparison, the eventual contentrate product which will be shipped from the mill should contain between 50% and 55% elemental moly. 45% mo is equivalent to 900 pounds mo per ton. At current oxide prices, which have been rising in the past weeks, one ton of this material after roasting is valued at approximately $23,400, or the equivalent of 34 ounces of gold.

Work continues on the mill and tailings pond.  A decantation column has been installed in the pond, which filters the water prior to recirculation from the pond through the mill (see below).

NDEP has issued a Septic Permit, which is the last step toward allowing occupancy of the mill following final county inspections. 

Inside the mine, crews have finished drifting through a wide moly zone and are entering competent rock in preparation to drift about 35 feet and join back up with the original decline which runs from the North to South Zones.   This is the next step toward accessing the South Zone over the coming weeks. The above photo shows the bands of moly and quartz within the vein structure near the point of entry into the footwall.

April 28, 2006

Our lead miner, John Rasmussen, is seen here pointing to the center of Sylvia's North Zone moly vein.  The white lines superimposed on the photo give an approximate indication of the width and slope of the vein structure.  The underground crews intersected this section of vein as they drifted around a caved portion of the orginal decline leading to the South Zone.  Visual assessment of the vein suggests significantly higher moly grades than had been interpolated from pre-existing data.  True assays shall be performed to verify grade and width, which may or may not be indicative of the average grade and width to be encountered along strike.  

This is a close-up of the same section of vein.  It features a remarkable concentration of what visually appears to be molybdenite in a high-grade lens.  The lens structure is approximately 1.5 feet in width (white arrow) and appears to be of an exceptionally high-grade, to be determined by assay. 

April 26, 2006

This is the new Aeroline 50HP mine fan and 30" steel vent line installed and complete. This system delivers 22,000 cubic feet of air per minute underground to the working face of the Sylvia Vein, 900 feet away.  It will support the use of additional diesel powered heavy equipment and multiple crews, allowing for the development of several working faces at once.  As the stopes, raises and scrams are developed over the coming months, it is critical to supply MSHA-mandated volumes of fresh air.  This supply will be further enhanced once a secondary escape raise has been dug, later this year.

Here is a view of the vent line transiting toward the working face.  The steel piping replaces the yellow fabric line, which could not handle the volume of air required over the full distance to the face.

Here's a good shot of Jason running the mucker in the #2 sump, located in the North Zone.  Work continues in an effort to set up for bulk sampling in this general area.  Stopes, scrams and raises need to be put in, making room for men and equipment so that vein material can be removed safely and efficiently. 
 

April 17, 2006

Work continues at both mill and mine.  With the addition of two conveyor belts, the multi-stage crusher circuit is now complete and ready to accept mill feed.  The Holo-Flight hot-oil auger dryer has been installed into its separate drying station.  The assay lab's wiring and plumbing are finished. Underground, the refuge chamber is nearing completion, and the final load of hard vent piping will be arriving for installation within the next 48 hours.  
 

April 10, 2006

This is a photo of the face of the heading currently being run to and through the Sylvia vein, and then south, parallel with the old decline.  It is estimated that the vein lies less than 10 feet ahead.  To date, over 36 feet of header has been blasted along the North Zone.  It is part of the necessary development work to allow the miners to approach the vein from the right direction and avoid fracture areas and faults.  Progress has been swift, the rock is good, and the miners have been advancing bald-headed, as shown in the photo.  The present plan is to cross the vein, moving south adjacent to the old decline, and then angling back to intersect the old decline past  a collapsed section, on the way to the South Zone.

Below is a photo of a section of the 25-year old decline running east-west a few hundred feet from the North Zone junction.  With the exception of the yellow vent line and utility piping on the right side, the decline is just as it was discovered a few weeks ago. Note the generally excellent condition of the steel sets, lagging and ground.  This is not indicative of the entire length of the old decline, much of which was only wired, and some of which is caved.  But it shows the care with which the decline was orginally dug.

April 5, 2006

This latest rock sample from the North Zone weighs 26 pounds.  It is representative of other samples taken from the workings. 

Ed Falk, one of our geologists, examines the sample, testing for presence of calcium. 

Work at the mine continues with development of access to the strike and prepartion of a temporary refuge chamber in accordance with MSHA requirements.  Crews are extending utilities and expanding the infrastructure in order to support the bulk sampling to follow. The existing fabric air ducting which brings ambient air to the workings is being replaced with steel piping, which will reduce line loss and increase air flow to the miners and thier diesel equipment.  Electrical power and high pressure air is being upgraded as well.  Crews are blasting and drifting toward the footwall in order to eventually establish the draw points and scrams.  Mineralized material is being encountered in this process, and samples, such as the one above, continue to indicate positve showings for molybdenite along the North Zone.

The "whole rock assay" performed on the sample represented by the slabs in the photo (below) ran 5.35% for the competent vein material (marbleized pieces at top of photo) and 2.94% for the clay component (larger bottom piece). 
 

March 30, 2006

The picture above illustrates at least two modes of occurrence for the molybdenite found in the sample rock from Ashdown's North Zone, pictured below. The two top slabs are hard quartz vein showing a significant volume of intergrown molybdenite that occurs as sheeted fracture fillings and irregular blobs. The bottom slab features a calcite-rich host rock with dense moly content, which, to the eye appears more disseminated and less "flashy". In both cases, it is difficult to accurately estimate the actual contained moly without first developing an 'eye' based on experience and actual chemical assays. Over the coming weeks our crews and Technical Services group will begin building the science database that will allow "in situ" grade calls at the scram faces and throughout the system, while wet bench chemical work is completed prior to blending at the mill.

March 23, 2006

Several of our men who made this possible are pictured below. Mine Manager Earl Harrison, seen at center holding the sample, commented, "I wouldn't be surprised to see rock like this grading 15% or better. Once we start bulk sampling and assaying we'll know for sure what we've got."

For large-format PDF of this photo click here

Earl has just sent in the following report on mine activities at the North Zone:

"The Ashdown mining crews are now timbering through the Sylvia Vein and out into the footwall. All of the development work will be done in the footwall. The footwall rocks are more competent than the hanging-wall rocks and require little or no timbering. Crews will then begin to shoot out a refuge chamber before advancing south along the vein. The refuge chamber is an MSHA required safety step to protect miners in the event  of entrapment or mine fire. The refuge chamber will satisfy MSHA requirements until a secondary escape and ventilation raise is completed in the coming months. After the refuge chamber is complete, crews will begin development work for the bulk sample.  Draw points will be driven every 40 feet back under the Sylvia. Finger raises will then be driven from the end of the draw points vertically to intercept the vein in a "Y" configuration. A scram will be driven along the vein at the top of the finger raises.  As the rock is blasted from the vein, it will be pulled down the finger raises and removed from the draw points with an underground mucker and loaded into underground trucks for the trip to the surface. Only one-third of the rock is removed until the entire vein is mined out on that level. This is called a shrink stope and is effective if the vein is standing relatively vertical. In this area of the mine the vein is dipping at 60 degrees to the west and is striking north and south. The moly encountered by Golden Phoenix crews in this part of the mine is massive and averages between 3 and 4 feet thick."

March 8, 2006

This shot was taken deep within the Sylvia decline, looking uphill toward the by-pass.  It shows the timber sets recently installed to stabilize the clay seam that had caved, as described on February 26.  From this vantage point, the junction with the north-south portion of the decline, which leads to the high-grade moly deposit, is approximately 75 feet behind the photographer.  The photo below shows more detail of the wire mess that is being bolted to the back of the decline as our crews steadily advance toward the face of the moly deposit.

February 26, 2006

The above photo is a close-up of a section of the old decline that is being rehabilitated.  Note the use of #80 railroad rails to spile through a small caved portion.  The rails provide additonal back support, and allow the crews to project cover ahead of their advance.  To date, the majority of the old decline is intact, and only requires wiring and bolting.  Timbering, such as this, is being performed only in those few sections that require added stabilization, generally due to the intersection of the hard quartz diorite with a one-to-two foot wide soft clay seam. 

Below, the photo shows the finished work on the by-pass as it enters the old decline.  Our timber work is a source of pride to the Company and a clear expression of the talents of our miners.  The art of timbering is getting harder to find and Golden Phoenix feels very fortunate to have the quality of miners, such as Earl and Johnny and Terry , who practice that art so well.

February 20, 2006

This diagram of the Sylvia Decline, prepared by Ed Falk - a member of the Golden Phoenix Technical Support Team - with assistance by Earl Harrison, shows the general layout of the Ashdown molybdenum deposits and progress toward restoring the original decline in preparation to begin bulk sampling.  Please click on enlarge to receive a full-scale PDF download of the diagram. It will show the areas of past cave-ins, the recently completed by-pass, the current point of advance, and where the decline intersects the known and inferred mineralization.  You can enlarge or reduce the PDF image to fit your screen.  [Disclaimer: The diagram is a simplification of the actual system, and does not represent the full extent of mineralization.] 

Pease note the two prime areas of mineralization: The North Zone with occurances of 1-to-4% Mo present, which will be the first area encountered; the South Zone, with occurances of 1-to-20% Mo present.  These figures are derived from past records of drill and assay results performed by ACNC when the decline was first dug 25 years ago, and later augmented by drilling results from GPXM’s 2004 drill program.  They are further supported by the results of stockpile production undertaken by our JV partner, Win-Eldrich, this past fall at a toll mill in Montana.

As progress is made toward the restoration of the original workings, the Ashdown Mill continues to advance.  The building has been fully enclosed and work is proceeding on wiring and piping.  Mr. Larry Hoffmann, a Professional Engineer, has been contracted to visit the mill this week in order to inspect and advise on its layout in advance of commissioning.  Mr. Hoffman has extensive experience processing molybdenite.  He assisted in milling the Ashdown stockpile material in Montana last fall, and consequently is acquainted with its physical and chemical characteristics.  The above photo shows the fully-enclosed mill building, far left, the fine ore bin and its conveyor at center, the secondary crusher and its conveyor to the right, and the primary crusher, far right.  Rock will be dumped into the primary crusher from transport trucks coming from the mine.  The rock will be crushed and then conveyored to the secondary crusher, recrushed and conveyored into the fine ore bin, from where it will feed into the ball mill.   

February 16, 2006

This photo shows the condition inside the current section of original decline being wired and bolted.   The crews will continue to work their way down toward the moly face, rehabilitating the decline as they go. 

February 10, 2006

The junction with the original decline has been completed and made operational, as shown in the two photos below.  The upper photo shows the last 40 feet of the bypass as it enters the old decline.  The lower photo is taken from inside the old decline looking back toward the bypass.  Because of the large open spans along the back (or ceiling) of the old decline, additional timber and lagging was installed to reinforce the intersection.  The original decline is 18 feet in diameter.  Note the general good condition of the decline, showing little or no sloughing.  Sections of rusted wire mesh can be seen hanging from the back, and these sections are being replaced.  The next step, currently in progress, is to advance down the next 800 feet of original decline, inspecting, repairing and pulling utilities as our crews move toward the face of the moly deposit.

February 4, 2006

During the past week, mining crews concentrated on timbering and stablizing the junction of the Sylvia by-pass and original decline. As safety remains the top priority, special attention was given to reinforcing the entry point, which has open spans of as much as 28 feet.  The by-pass was slabbed and graded to smooth the transition into the old decline, and 10x10 timbers were set at close intervals and lagged and bolted in place.  This work has now been completed.  Utilities can be extended in the coming days, and the men will begin the step-by-step process of rewiring and rebolting the decline wherever the original wire mesh has deteriorated.  The photo below shows Johnny at the junction, facing toward the old decline.  Note the condition of some of the wire mesh. 

From this vantage point, the next objective is to muck out the foreground, and after rewiring the immediate area, proceed toward the ten-foot-wide opening, the top of which is visible in the lower center of the photo.  That is the section of the original decline which extends downward several hundred feet to the face of the moly mineralization.  Once the work in this area is complete, crews will move forward along the decline, inspecting, repairing and extending utilities as they go.  A blow-up of this photo can be viewed by clicking here (this is a large file and may be slow to download).   It shows enough detail to see the original J-bolts that held the utility lines from the previous operation, over 23 years ago. Earl Harrison has described the visible portions of the old decline as "in excellent condition."  The condition of the remainder of the decline will be assessed as crews work their way into the lower sections of the old decline during the coming weeks.

January 25, 2006

Now that Earl Harrison's crews have linked up the by-pass with the original Sylvia Decline, the coming days will be occupied with a number of activities. The first step to restoring the old decline to functionality is for the miners to slab and grade the intersection of the by-pass to allow movement of equipment into the decline. This work is already in progress, with timbering and bolting underway. Utility lines and ventilation will be extended ahead, and the air quality will be tested. The resident air must be flushed out with fresh air.

From the point of intersection, inspection teams report that the old decline is open in both directions. The collapsed portion of the decline, extending downward from the portal, can be seen to terminate approximately 60 feet from the intersection. From that point forward, the decline is reported to be in excellent condition with all steel reinforcement sets that are visible appearing intact. Wire mesh that had been rock-bolted to the walls and back of the decline are still standing but some sections have rusted and detached, and these will be rebolted before crews can safely proceed further into the decline. Then clean up and mucking of loose material can be performed.

This process of inspection, ventilation, repair, cleanup, mucking and extension of utilities will be repeated several times as crews gradually work their way down toward the head of the decline. From the point of intersection, the distance to the face of the decline is over 1,000 feet. Depending on what is found, the process may take several weeks to complete. It is expected that some minor sloughing and cave-ins may be encountered, along with the need to shore up weakened sets and re-bolt wire mesh.

Returning the decline to a stable, and secure condition is the first priority. Once this process is complete, the ore body can be properly assessed and a work plan designed to begin extraction of the bulk sample.

January 4, 2006

Mining crews completed their 10-day work shifts, getting an average of 100 hours-per-man in before starting their scheduled weekend rotation beginning the day before Christmas.  While the lead crews were on rotation, a back-up crew, led by Earl Harrison, continued working from December 26th to New Years.  This crew was able to finish work on the timbers and extend the ventilation and utility runs down to the face of the decline, allowing the mining crews to immediately return to drilling and blasting on Thursday, December 29, when they returned from their 5-day rotation. The mine crews are making their daily round-and-a half: drilling, blasting, mucking and timbering.  The ground is continuing to improve as we move closer to the granodiorite.  The by-pass has neared the original decline to within about 22 feet, and the crews are driving a right hand turn in order to run parallel to the old decline until it can be intersected some 75 feet ahead.  No water has been encountered, and the drifting continues at a steady pace.  The face of the drift is shown below, revealing the change in material toward a harder rock with greater integrity.