Golden Phoenix Minerals Announces Banner Zone Drill Results And New Contact Project
Agreement
RENO, Nev.--(BUSINESS WIRE)--July 13, 1998 Golden Phoenix Minerals, Inc. (OTCBB:GPXM - news) announces that it has received preliminary drill
results from the ongoing 17-hole (10,400 feet) drill program in the Banner Zone at Contact, Nevada. The drill results continue to indicate the open pit mining
potential.
Vertical drill hole CRC-98-2 intercepted 60 feet of oxide copper from 160 to 230 feet with an average grade of 0.93 percent copper. Within this interval is a
five foot interval returning 2.4 percent copper as well as 10 feet of historic underground workings from the Nevada-Bellevue mine along the main vein which is
reported to have contained as much as 4 percent copper. Mineralization was also encountered from 425 to 455 feet (30') with an average grade of 0.24
percent copper. Drill hole CRC-98-1 did not reach targeted mineralization due to fractured rock conditions; however, a 20-foot zone 100 feet below the
surface intersected oxidized mineralization with an average grade of 0.29 percent copper. Drill hole CRC-98-3 contained 20 feet (true thickness), 90 feet
below the surface, of oxide mineralization with an average grade of 0.73 percent copper. A second intercept at 250 feet contained 5 feet with 0.68 percent
copper surrounded by numerous intervals grading 0.1 percent copper.
On July 10, 1998, Golden Phoenix Minerals signed a separate exploration license and purchase option (License/Option) for the SF Lewis Trust Contact
Project. In an option agreement entered into in January 1998, Golden Phoenix Minerals had acquired the right to purchase all the mining properties of the SF
Lewis Trust for $20 million (Main Option).
The License/Option enables Golden Phoenix Minerals to maintain the terms of the Main Option while allowing the Company to separately acquire the Contact
Project should Golden Phoenix Minerals decide not to exercise its rights under the Main Option.
The License/Option was acquired for an initial payment of $15,000 and 100,000 common shares of stock. The License/Option requires Golden Phoenix
Minerals to make monthly cash payments, which will total $149,000, and to issue common share stock with a cash value of $2.2 million over the four and
one-half year option term.
The purchase price for the Contact property is $3 million cash and $1 million worth of Golden Phoenix Minerals common stock. The Lewis Trust will retain a
5 percent production royalty on gold and silver and 4 percent on all other minerals. The production royalty may be purchased for an additional $3 million cash
and $2 million worth of common stock. Golden Phoenix Minerals is obligated to expend $250,000 on exploration during 1998 and $1.4 million over the term
of the agreement.
The Contact property is located in Elko County, Nevada in the Salmon River Mining District. The total Contact Project area consists of approximately 8,400
acres. In the 1970s Phelps Dodge and Coralta Mines drilled 61 holes at the Contact Project and have reported 7 million tons of material with an average
grade of 2.3 percent copper (320 million pounds).
Golden Phoenix Minerals, Inc. (GPXM) is an OTC Bulletin Board listed minerals exploration corporation dedicated to the discovery and development of
precious and base metal deposits in the western United States and Alaska.
Contact:
Golden Phoenix Minerals
Opal Adams, 702/853-4919 (Investor Relations)
Investor@golden-phoenix.com
Web Site: golden-phoenix.com
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