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SPARKS, Nev., Oct. 21 /PRNewswire-FirstCall/ -- Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM) is pleased to report initial drill results from Scorpio Gold Corporation's reverse circulation (RC) drilling in the pit areas of the Mineral Ridge gold deposit, located near Silver Peak, Nevada. Additional results of RC and diamond drilling will be reported on a timely basis once received and compiled.
Peter J. Hawley, CEO of Scorpio Gold, reports; "We are very pleased with the initial assay results from our re-confirmation drilling, which to date are presenting higher grades than the average historical mined grade of 0.056 ounces per ton (OPT). The Company believes that the lower historical grade was a result of excessive dilution by the previous operators. The initial higher grades bode well for enhancing the economics of this project, especially in light of the recent strength in the gold price, currently in excess of US $1,000 per ounce, and the Company's recent purchase of the underlying 8% net smelter royalty."
The Mineral Ridge project is located ~30 miles west of Tonopah, Nevada and has historically produced almost 575,000 ounces of gold, including ~170,000 ounces from open pit and ~405,000 ounces from underground mining operations. The property is currently bonded and permitted for heap leach gold processing and production, and was in production as recently as 2005. The mine project comprises 54 patented and 279 unpatented mining claims covering 5,921 acres, and hosts multiple gold bearing structures, veins and bodies. It features a well-developed infrastructure including roadways, power grid, heap leach pad, crushing circuit, ADR plant, water supply, maintenance shop, refueling and storage facilities and administrative buildings.
Drill Program
A total of 8,911 feet consisting of 2,026 feet of core diamond drilling and 6,885 feet of RC drilling was completed on the Mineral Ridge pit areas in summer 2009. Systematic drill spacing was employed from the near pit floor mineralization toward the down strike/dip mineralized extensions. The drill program was designed to reconfirm previously reported mineralization and build a database in compliance with NI 43-101 standards for resource estimation. In addition, the program has delineated sterile areas where pit waste material can be placed.
Drinkwater Deposit Overview
The Drinkwater Deposit is the largest known mineral deposit and is located on the northeastern side of the metamorphic and intrusive core complex. It was partially mined by underground methods from the 1860s to the early 1940s and by open pit methods from 1989 to 2005. The mineralized zones in the Drinkwater deposit have a general strike of N45W and dip ~20-25 degrees to the northeast. Drill-defined mineralized zones have a strike length of 2,500 feet, down dip extension of over 2,000 feet, two or more gold bearing shear zones with an individual thickness of 5 to 40 feet and an overall thickness of more than 100 feet. Reverse circulation ("RC") drill holes reported in Table 1 were designed to target the main mineralized pit area to re-confirm previous drilling and resource estimates:
Table 1. Drinkwater Deposit - Mineralized Pit area
Drill Hole Target From To Width Gold
No. (ft) (ft) (ft) (OPT)
--- ------ ---- ---- ---- -----
MR-09-006 Drinkwater Pit 0 50.0 50.0 0.078
--------- -------------- --- ---- ---- -----
MR-09-16 Drinkwater Pit 20.0 40.0 20.0 0.087
-------- -------------- ---- ---- ---- -----
MR-09-13 Drinkwater Pit 25.0 65.0 40.0 0.117
-------- -------------- ---- ---- ---- -----
MR-09-14 Drinkwater Pit 25.0 70.0 45.0 0.352
-------- -------------- ---- ---- ---- -----
MR-09-001 Drinkwater Pit 35.0 120.0 85.0 0.155
--------- -------------- ---- ----- ---- -----
150.0 165.0 15.0 0.024
----- ----- ---- -----
MR-09-002 Drinkwater Pit 0 10.0 10.0 0.019
--------- -------------- --- ---- ---- -----
35.0 100.0 65.0 0.219
---- ----- ---- -----
115.0 165.0 50.0 0.070
----- ----- ---- -----
Reverse circulation ("RC") drill holes reported in Table 2 were designed to target low grade and sterile areas in the pit area to determine new, tighter pit design shells:
Table 2. Drinkwater Deposit - Low Grade or Sterile Pit Area
Drill Hole Target From To Width Gold
No. (ft) (ft) (ft) (OPT)
--- ------ ---- ---- ---- -----
MR-09-003 Drinkwater Pit 140.0 145.0 5.0 0.015
--------- -------------- ----- ----- --- -----
Edge of Pit 155.0 180.0 25.0 0.020
----------- ----- ----- ---- -----
205.0 215.0 10.0 0.042
----- ----- ---- -----
245.0 255.0 10.0 0.054
----- ----- ---- -----
MR-09-004 Drinkwater Pit No Values Reported
--------- -------------- ------------------
MR-09-005 Drinkwater Pit 0 20.0 20.0 0.014
--------- -------------- --- ---- ---- -----
MR-09-007 Drinkwater Pit 0 15.0 15.0 0.037
--------- -------------- --- ---- ---- -----
40.0 50.0 10.0 0.013
---- ---- ---- -----
65.0 70.0 5.0 0.018
---- ---- --- -----
MR-09-008 Drinkwater Pit 15.0 30.0 15.0 0.045
--------- -------------- ---- ---- ---- -----
70.0 90.0 20.0 0.037
---- ---- ---- -----
MR-09-009 Drinkwater Pit 30.0 40.0 10.0 0.021
--------- -------------- ---- ---- ---- -----
50.0 55.0 5.0 0.054
---- ---- --- -----
135.0 150.0 15.0 0.042
----- ----- ---- -----
MR-09-010 Drinkwater Pit 0 5.0 5.0 0.015
--------- -------------- --- --- --- -----
55.0 60.0 5.0 0.088
---- ---- --- -----
165.0 200.0 35.0 0.026
----- ----- ---- -----
MR-09-011 Drinkwater Pit 35.0 40.0 5.0 0.022
--------- -------------- ---- ---- --- -----
55.0 140.0 85 0.037
---- ----- -- -----
MR-09-012 Drinkwater Pit 125.0 155.0 30.0 0.041
--------- -------------- ----- ----- ---- -----
MR-09-015 Drinkwater Pit 50 55 5.0 0.017
--------- -------------- --- --- --- -----
175 190 15.0 0.093
--- --- ---- -----
195 210 15.0 0.026
--- --- ---- -----
Mary Deposit Overview
The Mary deposit is the southeast continuation of the Drinkwater, with the connection eroded away by Elizabeth Canyon. The drill-defined mineralized zones have a strike length of 2,000 feet, down dip extension of over 1,500 feet, with mineralized zones generally thinner and less continuous but higher in grade than those in Drinkwater.
Reverse circulation ("RC") drill holes reported in Table 3 were designed to target the main mineralized pit area to re-confirm previous drilling and mineralized estimates:
Table 3. Mary Deposit - Mineralized Pit area
Drill Hole Target From To Width Gold
No. (ft) (ft) (ft) (OPT)
---------- ------ ---- ---- ---- -----
Mr-09-17 Mary Pit 0 55.0 55.0 0.193
-------- -------- --- ---- ---- -----
For additional information on the Mineral Ridge project, please see the Company's website at www.scorpiogold.com.
All RC holes presented in the above tables were drilled at 90 degrees vertical dip; true width is estimated at ~95% down hole width. Analytical results were performed by American Assay Laboratory Inc. in Sparks, Nevada. All samples were submitted as bulk RC drill samples and standard preparation procedures were utilized to create a homogeneous sample. Samples were fire assayed with an AA finish at one assay ton (30 grams). Results of 0.29 opt (10 ppm) and greater were repeated with a gravimetric (weighed) finish. Standard Quality control procedures were followed which included random insertion of certified standards and blanks in the sample stream as well as routine duplicate sample analysis. American Assay Laboratories Inc. is an ISO/IEC 17025 accredited assay laboratory.
CEO, Mr. Peter J. Hawley, PGeo, is the Scorpio Gold's Qualified Person for the various Scorpio Gold projects. Mr. Hawley is responsible for the current exploration and development program at Mineral Ridge and has reviewed the content of this release. All reported findings, including references to new claims, fall within the area of interest defined within the joint venture agreement currently in negotiations between Golden Phoenix Minerals and Scorpio Gold. Scorpio Gold reports its results under Canadian mining and TSX Venture guidelines, which report mineral reserve and resource estimates differently than in the U.S., and may not meet the standards of "proven" and "probable" reserves set forth in SEC Industry Guide 7. Golden Phoenix Minerals intends to conduct further exploration on the property in the future in an effort to convert mineralized material into mineral reserves, in accordance with SEC Industry Guide 7 standards and definitions.
For more information on Golden Phoenix Minerals, please visit their corporate website at http://www.Golden-Phoenix.com/.
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 North America using competitive business practices balanced by principles of ethical stewardship. Golden Phoenix owns the Mineral Ridge gold and silver property near Silver Peak, Nevada and the Northern Champion molybdenum mine in Ontario, Canada.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements by officers of the Company, and other statements regarding optimism related to the business, expanding exploration and development activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. Actual results could vary materially from the description contained herein due to many factors including continued market prices for the Company's mineral products. In addition, actual results could vary materially based on changes or slower growth in the molybdenum and gold markets; the potential inability to realize expected benefits and synergies in the Company's mining operations; domestic and international business and economic conditions; changes in the mining industry for base and precious minerals, especially molybdenum; unexpected difficulties in expanding production at the Company's mines; changes in customer demand or ordering patterns for molybdenum; changes in the competitive environment including pricing pressures or technological changes; technological advances; shortages of skilled miners; the need for additional capital and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere. The forward-looking statements contained in this press release speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
CONTACT:
Golden Phoenix Minerals, Inc.
Robert P. Martin, President (775) 853-4919
investor@golden-phoenix.com
SOURCE Golden Phoenix Minerals, Inc.
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