I don't know WHAT I was thinking when I posted that 3.75 MIL OZS OF GOLD WITH 50/50 DORE IS WORTH $3,371,112,500 WITHOUT POSTING WHERE I GOT THE NUMBER 3.75 MILLION FROM.
IT CAME FROM THE COMPANY WEBSITE.
IF you can't get it from the website I can send you a .pdf copy
Page 8 of the MR.pdf (some of you have it already - SOME apparently DO NOT) So........ here it is:
golden-phoenix.com
This quote is taken from the bottom of page 8.
The exploration potential was analyzed by identifying both mesothermal and epithermal targets. The 5 targets that were identified have potential for the discovery of 3.0 to 4.7 million ounces of gold. These targets are:
I picked a point between 3 Million and 4.7 Million.........
I thought 3.75 was a reasonable number although I suppose I should have picked 3.85 as it's half the difference..........
CURRENTLY THE WEBSITE SHORCUT DOESN'T SEEM TO BE WORKING................................
SO:
THIS IS THE REPORT:
The Mineral Ridge Gold Mine
Golden Phoenix Minerals, Inc. - March 20, 2005
The Story of Mineral Ridge
The Mineral Ridge Mine is located on the northeastern flank of the Silver Peak Range, 4 miles northwest of the town of Silver Peak and 32 miles west of Tonopah in Esmeralda County, Nevada. The property consists of 54 patented and 110 unpatented mining claims totaling nearly 2,685 acres, or 4.2 square miles. The Company also controls three private land parcels, which are located outside the main mine area. These are the abandoned Blair town site, the Silver Peak mill site, and deeded land west of Mineral Ridge over some springs. These private lands total about 430 acres. Elevations vary from 4,300 feet at the town of Silver Peak at the western edge of Clayton Valley salt flat and to 8,390 feet at the northwest end of Mineral Ridge.
The Mineral Ridge property holds 4 separate economically mineable gold deposits. The mine reserve, at a 0.035 opt Au cut off grade, is 2,658,340 tons averaging 0.079 opt for 209,226 contained ounces of gold. This reserve is contained in a total resource of 8,314,000 tons averaging 0.061 opt gold (at a 0.02 opt Au cutoff grade) for a total of 506,000 ounces gold. The property further holds excellent exploration potential with identified targets containing a resource of up to a possible 3 to 4.5 million additional ounces on the property.
Acquisition in 2000
Golden Phoenix Minerals identified the Mineral Ridge gold mining property as a potentially superior acquisition opportunity in April2000. At the time, a Federal bankruptcy court in Reno controlled the property. The court was trying to either sell or shut down the property and sell all the rolling stock to settle claims against Mineral Ridge Resources, Inc. All mining permits and bonds were still in place, and no date had been set by the bankruptcy judge to call an end to the bankruptcy. The Company had evaluated the issues surrounding the past operators decline into bankruptcy and had determined that the property remained economically viable when both operational and processing changes were instituted.
There were four aspects of the project that were attractive and include:
1.) A fully permitted mining property in Nevada with on-going
gold production from the leach pad
2.) Potential for expansion of the resource already known on the property
3.) A proven gold reserve of 209,000 ounces
4.) Potential cash flow for Golden Phoenix Minerals, if the Company was successful in winning the bid for the
property.
On November 8, 2000 Golden Phoenix Minerals purchased the Mineral Ridge gold mine by making a purchase payment of $225,000. The purchase of the property essentially acquired the gold reserve for $1.03 ounce of gold (the total mineable gold reserve is 209,226 ounces.) Prior mine operators had spent about $30 million on the property, which included about $18 million in office, process, and ancillary facilities, about $2 million in engineering and feasibility studies, about $6 million in drilling and assays, $2 million in past permitting costs, and the remainder in site preparation. The property comes with an active leach pad with room to hold the current ore reserve.
Pre-existing Royalties
The Company is obligated to honor two prior royalty agreements:
The first is to Mary Mining Company, which includes annual advanced royalty payments of $60,000, and a sliding scale production royalty (NSR) based on gold price divided by 100 in $50 increments.
The other agreement, which originated from Banquet Corp., is with private individuals on several patented claims. This agreement includes a 1.0% NSR royalty on production when gold prices are below $300 per ounce and 2.0% when gold prices are above $300 per ounce.
Short History
Gold was discovered in the Mineral Ridge area in 1864. Intermittent mining operations have occurred from that date to the present. Early production was from underground high-grade gold ores that averaged from 0.243 opt Au to 1.45 opt Au.
In 1989 open pit mining was initiated in the district with ores ranging from 0.074 opt Au to 0.12 opt Au. The total production of the district before open pit mining took place was 576,000 ounces of gold.
Geology Summary
The Mineral Ridge gold deposits are located on the northeast flank of the Silver Peak Mountain Range. This range lies in the southern reaches of the Great Basin, within the Walker Lane structural corridor. The Walker Lane is a 60-mile-wide region of right lateral, wrench-faulting which separates the Sierra Nevada batholith to the west and southwest and the Great Basin to the east and northeast.
The rocks in the Mineral Ridge area consist of Precambrian metasediments and metamorphosed Tertiary granodiorite. These rocks have been cut by numerous shallow dipping faults, which have become host to the gold deposits. The gold is found in sheeted zones of thick quartz veins, which nearly parallel the current surface topography.
Geology of Mineral Ridge
Mineral Ridge is an anticlinal dome found on the eastern flank of the Silver Peak Range. It has been interpreted as an uplifted metamorphic core complex where unmetamorphosed and unfolded Cambrian strata are in detachment-fault contact with underlying deformed granitoids and Precambrian metamorphic rocks of the core complex. Auriferous quartz lenses of the central gold-quartz district are concordant with foliation in the Precambrian Wyman Formation host rock. Transitional contacts were observed between quartz and alaskite (commonly pegmatitic), and between alaskite and peraluminous two-mica granite, strongly suggesting that the alaskite, quartz, and ore metals were derived hydrothermally from residual granite melt and aqueous fluids.
Gold occurs as free disseminations and in clots associated with pyrite, galena, sphalerite, and arsenopyrite. The local shallow abundance of quartz lenses permits underground or open-pit mining. Considering the scattered gold distribution, coarse nature of the gold, and common absence of visible ore controls within quartz lenses, the most economically viable method is to mine and process large volumes of quartz-rich rock from mineralized areas. Scattered Tertiary epithermal breccias of hot-spring origin also represent potential mineralization targets to be examined.
Gold Deposits
The Mineral Ridge project consists of several gold deposits, which have been defined by drilling and some have been partially mined. .
The Drinkwater Deposit is the largest known ore 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 1999. The ore zones in the Drinkwater deposit have a general strike of N45W and dips about 20 to 25 degrees to the northeast. Drill defined ore zones have a strike length of more than 2500 feet and down dip width of 2000 feet. Two or more gold-bearing shear zones are present at the central portion of the deposit with an individual ore zone thickness of 5 to 40 feet and an overall thickness of more than 100 feet.
The Mary deposit is also located on the northeastern side of the metamorphic and intrusive complex and east of the Drinkwater deposit. It is the second largest known deposit on Mineral Ridge. This deposit was partially mined by underground methods before the 1940s along with the Drinkwater deposit, but it was not touched by the recent open-pit mining operations. Ore zones in the Mary deposit have a similar strike and dip as those in the Drinkwater deposit with a drill controlled strike length of over 2000 feet and down-dip with of 1500 feet. These ore zones are thinner and less continuous, but tend to be higher in gold grade than those in the Drinkwater deposit.
.The Gold Wedge deposit is located at the top of the Mineral Ridge and the metamorphic and intrusive core complex, and southwest of the Drinkwater deposit. It consists of several small horizontal ore bodies, which have been mined by both underground and open-pit methods. Any remaining resources in this deposit are not
available for further mining as the location has been utilized for the leach pads and processing facilities.
The Brodie deposit is also located on the top of the Mineral Ridge and the metamorphic intrusive core complex, and south of the Gold Wedge deposit. It is a small deposit with nearly horizontal ore zones. The deposit has been partially mined in the past, but there still remains a small drill-defined reserve. Ore zones in this deposit are still open in several directions, which indicates a potential to increase the reserve.
The Solberry and Blue Lite deposits are small satellite deposits located southwest of the Gold Wedge deposit. There is a small drill defined reserve in these deposits.
Exploration Potential
The Mineral Ridge gold property has produced over 626,000 ounces of gold from two distinctly different types of deposits. The most important is the mesothermal gold quartz veins and adjacent silicified zones that historically have been recognized as the only gold producing system on the property. The mesothermal veins generally lie conformably at or above the granite contact with the lower Wyman formation. The early miners exploited these high-grade veins by underground mining methods and more recently by open pit mining.
The second most important gold producing system is the recently recognized epithermal quartz-sulfide veins, breccias and related mineralization that overprints the earlier mesothermal veins. The epithermal quartz-sulfide veins and breccias occupy late cross structures formed while the Mineral Ridge core complex was being uplifted from the ductile to the brittle environment. These veins have not been previously recognized, but are distinct and have probably made significant contributions to the total gold inventory of the district.
An analysis of the various favorable geological features associated with the two types of veins has been completed. These include defining the different types of gold veins and when they formed, performing a structural reconstruction of the host rocks through time, and identifying the extent of the favorable geological environment that gold deposits could be found. This work then allowed certain conclusions for discovering significant new gold mineralization in previously unrecognized targets.
The exploration potential was analyzed by identifying both mesothermal and epithermal targets. The 5 targets that were identified have potential for the discovery of 3.0 to 4.7 million ounces of gold. These targets are:
1) the down dip extension of the Mary Drinkwater zone,
2)the up dip extension of the Mary Drinkwater zone under Deep Springs Hill,
3) The NNE structural zone trending through the Drinkwater deposit,
4) the Brodie NNE structural zone to Oro Monte, and
5) the Brodie-Missouri WNW structural zone.
By drilling these targets, the mineable ore reserves held on the property will increase significantly. |
