2010 SHM NotesOK here it is……..
HOPE ya don’t MIND the format – made sense to me to do it this way – plus it helped me remember stuff…..
ADDED some stuff from my LAST SHM report BECAUSE I believe it’s more valid than ever.
I referenced what I could and added some pics… some of y’all have seen them before…. if I missed a reference let me know and I’ll go look for it... MY EGO isn’t as much a part of this as is my SOUL…..
24 Month Acquisition Plan
Acquisition Plan
“Golden Phoenix is planning to target advanced stage projects with near-term production throughout North and South America. During this INITIAL 24 month period, the Company anticipates analyzing up to 50 prospective properties, with a view towards optioning up to 10 of those properties on terms and conditions acceptable to the Company. From these optioned properties, the Company hopes to identify up to 5 projects that can be advanced toward commercial production.”
‘The sum of five such projects has the potential, in our opinion, to add up to more than one project without the risk of investing in just a single mining project.’
THIS doesn’t END the new plan in 2012, they will simply repeat the process a new……modifying it as required to continue to expand its stable of properties.
APPARENTLY operating a mine in Nevada is becoming more difficult and LESS timely than it used to be. PART of the reason for the move outside Nevada diversifying mine locations to Peru and the Shining Tree District in Canada.
PERU (unlike BOLIVIA) is apparently a good business environment for mining companies. MY main concern there being what happened to MYNG and ITs business plan THERE albeit in BOLIVIA.
Development Plan
“When we acquire a property, our next goal is to embark on a 24 month development plan that will begin the process of adding value to that project. Depending on when the acquisition occurs, we believe these individual development plans have the ability to propel the company through the end of 2014.”
The company will develop a property by providing:
Introductions to sources of investment capital.
Providing eological support to target additional exploration.
Drilling support to confirm additional discoveries.
Expertise in permitting, bonding, legal and/or accounting issues.
Introductions to mine operators who can potentially take these projects into commercial production.
When we have added sufficient value to a property, our plan is to seek out an experienced mine operator in that particular region of the Americas. We will choose someone we believe is best equipped to advance that project toward commercial production.
Some properties we acquire will be more advanced than others. As a result, some properties may require more time or less time for the acquisition and/or development phases. The 24 month time frames for each phase are estimates only. Combined acquisition and development time frames could total 48 months or more depending on a variety of circumstances.
Our philosophy going forward is to improve properties and find the right partner for them. If we acquire a property, we intend to add value to it. After some initial work, if a project turns out not to meet our expectations, we will maximize the value we can generate for that particular property and move on to the next project. Our commitment is to the continuous advancement of each project we undertake.
https://www.golden-phoenix.com/acquisitionplan.html
THIS is where we can (will) have several projects (in work over time) at different stages of development. It will mimic a mining company as it will (and can have) plan to have a FLOW of properties coming to fruition on a steady basis that will then afford the company with income from its interest in the properties……..
THIS provides the company with the opportunity to grow and expand wisely as more capital becomes available, and as word gets out on the success of the business model from satisfied customers – BOTH the purchaser of the property and the COMPANY that sold the property to us in the first place.
Tom said he doesn’t burn ANY bridges…. So there shouldn’t be a load of pissedoff companies in our wake….. in fact we will have helped them out at their request.
The Vanderbuilt and Coytote properties are two such properties where the company has a vested 80% interest.
These properties will probably be on the fast track as they are adjacent to the Mineral Ridge Mine/Claims.
MOST CERTAINLY as Scorpio advances the Mineral Ridge Property which they have expanded by 300% they will be the obvious choice for our JV partner as the Vanderbuilt and Coyote are ready to advance from one phase to the next. THOSE properties HAVE the economy of scale with MR being next door
THE COMBINATION OF THE CURRENT EXPANSION OF MINERAL RIDGE BY 300% AND THE ADJOINING VANDERBUILT/COYOTE PROPERTIES WILL TURN MR FROM A MINE TO A MINING DISTRICT.
“Vanderbilt Silver and Gold Project
In July 2010, Golden Phoenix entered into a definitive asset Purchase Agreement to acquire an undivided 80% interest in the historic Vanderbilt Silver/Gold Mine in Esmeralda County, Nevada.
The Vanderbilt is adjacent to the Mineral Ridge property, which the Company maintains a thirty percent (30%) interest in via its membership interest in Mineral Ridge Gold, LLC; the joint venture entity that owns and operates the Mineral Ridge property with Scorpio Gold.
“We believe properties like the Vanderbilt that sit adjacent to our Mineral Ridge Gold Project hold significant upside potential,” stated Tom Klein, CEO of Golden Phoenix. “The signing of this definitive Purchase Agreement furthers the efforts for our recently announced 24 month acquisition plan.”
The Vanderbilt is comprised of 44 claims, plus 3 patented claims. “Modern mining techniques have not been applied to the Vanderbilt,” continued Tom Klein. “What miners left behind as low-grade deposits in the early 1900’s, could potentially be considered high-grade deposits by today’s standards.”
According to a report published by the U.S. Geological Service in 1906, the Vanderbilt was the first area to be mined on Mineral Ridge beginning in the 1860’s and continuing into the early 1900’s. Mining methods during this period were labor intensive and crude by today’s standards. Rocks were often picked off the surface or explosives were used to follow a gold or silver vein into the ground one dynamite blow at a time. In order for a property to be productive, deposits needed to be rich
Mr. Klein concluded: “Our expectation is that properties like the Vanderbilt have the ability to transform Mineral Ridge into one of Nevada’s premium mining districts.”
The Vanderbilt Silver & Gold Project is located just outside of Silver Peak, Nevada. According to local history, the town was so named because of the Vanderbilt Silver Mine. Development plans are currently underway for the Vanderbilt.”
https://www.golden-phoenix.com/vanderbiltsilver.html
The Coyote Fault property
In July 2010, Golden Phoenix entered into a definitive Option Agreement to acquire an undivided 80% interest in the Coyote Fault gold and silver property in Esmeralda County, Nevada.
Coyote Fault is adjacent to the Mineral Ridge property, which the Company maintains a thirty percent (30%) interest in via its membership interest in Mineral Ridge Gold, LLC; the joint venture entity that owns and operates the Mineral Ridge property with Scorpio Gold. The Option Agreement completes the letter of intent process with Mhakari Gold (Nevada) Inc.
“We believe properties like Coyote Fault that sit adjacent to our Mineral Ridge Gold Project hold significant upside potential,” stated Tom Klein, CEO of Golden Phoenix. “The addition of Coyote Fault to our Company’s portfolio is a first step in expanding our property base over the next two years.”
The Coyote Fault property is comprised of 34 claims.
“Mhakari geologists performed initial reconnaissance on this property,” continued Tom Klein. “Their assessment indicates Coyote Fault is one of the primary geologic structures associated with gold mineralization on Mineral Ridge.”
No modern mining techniques have been applied to the Coyote Fault property. This gives Golden Phoenix the opportunity to add value to Coyote Fault by providing exploration, permitting, bonding, drilling, and/or financial support. Development plans are currently underway for Coyote Fault.
https://www.golden-phoenix.com/coyotefault.html
PRODUCTION
‘Mr. Peter J. Hawley, CEO of Scorpio Gold, has reported that gold production is scheduled to commence in the first quarter of 2011, with material previously mined that is available for restacking and releaching. Ramp up will take place using this material and then be followed with newly mined material from the Drinkwater pit.
Production is expected to reach a steady state by June and then continue to track positively in the second half of 2011.’
https://www.golden-phoenix.com/coyotefault.html
APPARENTLY (like Ashdown) in order to get some cash flow in the works and to make the shareholders happy the various mining outfits that attempted to produce gold profitably at MR over the last decade to a few shortcuts that turned out badly for all concerned.
There were numerous engineering errors in and rife throughout the entire leach pad circuit. Pumps that were under capacity – pump pick up set too high – the pregnantpond was ALL WRONG. PART of the reason we had CRAP revoveries of gold (aside from outright thievery) SNOW and colder weather exacerbated the issues…….
SCORPIO (apparently a wise choice) went in and RE-EVALUATED EVERYTHING that had ANYTHING to do with gold production from the leach pad and has almost FIXED IT ALL.
SO…. The first small amounts of production from the leach pad are indeed about to occur FIRST QUARTER 2011.With the ramp up happening about the time I had originally expected ANY gold from the pad…..We will probably be able to take previous production numbers and DOUBLE them if yer lookin for rough estimates on gold/silver recoveries this JUNE…. Of course there will be 6 mos of just getting the whole processed TUNED. 1st quarter numbers will hold the clue if they EXCEED GPXM’s best production numbers from it’s BEST quarter when it was in production.
The recoveries will still be 64% (roughly) but the feeling is cash flow from the leach pad can fund further development of the mine to include the procurement of the mill (which provides 94% recoveries) and can then be used to process the tailings for the remaining 30% of gold not captured by the leaching process.
I BROUGHT UP THE QUESTION OF SNOW AND WINTER IMPACTING MR OPERATIONS THIS WINTER. Tom Klien sorta laughed, and said Peter Hawley is FROM the frozen tundra of Canada, and that for HIM it’s like mining in Florida compared to where he’s USED to having to operate in Canada…….WE will see….
Exploration planning
Scorpio’s successful exploration and modeling of the mineralized deposits and related structures at Mineral Ridge has led to an extensive staking program adding an additional 2,934 hectares (7,250 acres) of unpatented mining claims with no underlying royalties to the property. The over-all land package now consists of 351 claims, which encompass 4,118 hectares (10,176 acres), representing an increase of 348 per cent from the original holdings.
Exploration targets on the new claims are currently being mapped and sampled, with several drill targets having already been identified. The 2011 exploration plan includes 13,000 metres of drilling.
Planning for exploration drilling in areas adjacent to the historical Oromonte underground mine is in progress.
Wide-spaced drilling conducted by previous companies in the 1990s intersected significant intervals of gold mineralization, which warrant additional closer-spaced drilling. Recent surface mapping and sampling has identified several additional targets that are being planned for drilling.
Exploration targets are being defined in the Bluelite area, where drilling by previous operators intersected multiple shallow horizons of gold mineralization. In addition, there is evidence for the presence of a high-angle, high-grade mineralized structure that has not been adequately tested.
Exploration targets are also being defined in the Solberry area between Bluelite and Oromonte, where shallowdipping gold-bearing quartz veins crop out at the surface. The area is the site of historic underground mining operations. Holes drilled by previous operators intersected significant gold mineralization warranting additional exploration.
Amendments to both the Mineral Ridge mine plan of operations and the associated environmental assessment are well advanced, upon completion of which Scorpio will proceed with additional exploration drilling.
https://www.golden-phoenix.com/coyotefault.html
43-101 RESULTS
1.9 RECOMMENDATIONS
Although metallurgical work conducted to date is incomplete, the current results indicate that wet milling followed by either an agitated cyanide leach system or a combination of gravity separation and flotation would provide the greatest recoveries. If a standard heap leach operation is utilized, a loss in overall recoveries versus a milling scenario will result.
The alternative to heap leaching will demand more in terms of capital input, and this needs to be justified by a sizeable resource. With this in mind, Micon makes the following recommendations:
1.9.1 Geology and Mineral Resource
Geological work should focus on three main areas, viz: improving the level of confidence in the resource already established, upgrading the resource to the measured category and expanding the resource.
Improving the Level of Confidence
Every effort should be made to update cross-sections with current infill drill data and rationalize cross-sections with mineralization envelopes and plan geology. At least 12 short diamond drill holes should be strategically twinned with existing RC holes in areas where the resource is best developed, to provide indisputable geological control.
Upgrading the Resource
Where spacing between drill holes exceeds 50 feet, infill holes should be drilled to attain an overall grid of 50 feet. Where deemed necessary, a closer interval can be followed to ensure confidence in the continuity.
Expanding the Resource
As a first step, detailed mapping encompassing the whole of the Mineral Ridge property should be conducted to identify favourable geology typical of the core complex, paying particular attention to the lowermost unit of the Wyman Formation (Mary limestone) where the bulk of the resource established to date occurs. Systematic drilling should be conducted in favourable areas identified during mapping.
A number of satellite deposits are known to exist within the property boundaries, including Blue Lite – Solberry, Brodie and Wedge/Oromonte. In these areas the existing data should be compiled into databases, plans/sections and areas with potential for additional resources should be systematically test drilled.
As previously noted by Chadwick (1996), there is unexplored underground potential downdip to the northeast of the Mary and Drinkwater deposits. This is another area where 2 to 3 reconnaissance drill holes might yield quick returns. ( I believe this is the hill with the three telephone/power poles they said they were going take the top off of)
https://scorpiogold.com/Documents/MR_ResourceRpt_Jun10.pdf
The 43-101 drilling results and subsequent down grade was done purposely to avoid ANY over zealous estimates because the 43-101 requirements are MORE stringent NOW than at the time that Behre Dolbeardid In ADDITION any drilling done BY SCORPIO was twin holes next to holes already drilled to VERIFY and NOT expand the resource. THAT will come later as they apply what the 43-101 recommends.
Pre-existing Royalties HAD to be extinguished
The Company WAS obligated to honor two prior royalty agreements at MR. The first to Mary Mining Company, which included an annual advanced royalty payment 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.
Apparently they totaled out at around 8%. The way the Royalties were structured were apparently going to become a PROBLEM as production ramped up, BOTH the royalties have both been eliminated.
MODIFIED NOTES FROM 2008 MINE TOUR OF MINERAL RIDGE
WHEN you realize your company is NOT going tits-UP(after all….) THEN the things that got you excited about it in the first place ONCE AGAIN BECOME IMPORTANT.
At the Mineral Ridge Tour in 2008, Rich Dixon told us “The ore structure at MR takes sort of a wave formation, and may also contort/convolute back on itself. In its development stage, the alaskite expanded, thereby segregating the layers of gold bearing limestone/quartz. It is the combination of the striated/layered effect of the gold bearing limestone/quartz, with the convolutions of the deposit, along with the steep mountain contours which have the potential to create multiple ore zones, creating the exploration challenge and also potential for overlooked/previously unexplored resources at depth.” The quote I believe is from the Original MR PDF. This is the drawing Rich did to demonstrate his understanding of the dissemination of the mineralization at Mineral Ridge. https://images.investorshub.advfn.com/images/uploads/2009/10/14/[gisj100_0298.jpg
There is an EXCELLENT VISUAL interpretation of that statement IN the Brodie Pit. There you can SEE the folds and undulations of the geology as they occurred. I didn’t personally get to go look at this anomaly in the Brodie pit, BUT I do remember the direction the flat wall faced. I’m fairly sure it was North East. . https://ih.fotothing.com/52366.jpg
Thanks to Bestfitter, I got an EXCELLENT shot of this up close. In the picture above, you can see it on the other side of the shareholders to the upper right side of the picture trending down to the bottom left. My reasoning for the North East direction for this rock is because I saw it AGAIN later in the day INSIDE the Mary Mine and due to the tour discussion of removing the entire top of a ridge that had 3 Power poles on it opposite from the Drinkwater Pit. APPARENTLY the mineralization there continues in a North Easterly direction from Brodie through the mountain towards the Mary Mine workings and in line with a ridge supporting three power poles…… I BELIEVE IF there was anything to look for at the mine that could indicate additional sources of high grade gold, THIS IS IT. The same striations and colors occur freely throughout the Mary mine https://images.investorshub.advfn.com/images/uploads/2009/10/14/lyyrsNo_flames_powder.jpg
When observing the maps of the property ARMED with the visual information afforded on the tour and the information (albeit older info) from the original website, maps of the ore bodies and KNOWN mineralization, one can begin to piece together a picture of WHAT it is that we have out there via Brodie and Mary.
Add to this that the drawing by Rich Dixon WASN’T just an example of what is happening at MR. It has a compass direction on it.
The direction is NW…… when examining the maps of KNOWN orebodies and comparing the depths of their occurance, you find that the Mary Drink water pit and the Mary Mine mineralization actually trends NW while in some places, mineralization trending in a North Easterly direction would indicate that the bands of mineralization are JOINED where there would normally be a gap.http://images.investorshub.advfn.com/images/uploads/2009/10/21/gihufMap_mr_deposits.jpg
“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.”
The 52 miles of underground workings in the Mary mine include a single very large hi grade lens, the Cord Stope from which was extracted something in the area of 300,000 ounces of gold. THIS is where they said we have “30 rock” 30 opt. The Brodie pit, site of the 26 ounce per ton (opt) 5 foot intercept, was originally developed by mining a hi grade lens of 12 opt…….. THEN it could be said we have “26 rock” at Brodie on the OPPOSITE end of the Mary Mine mineralization. The Mary Mine is by NO MEANs played out.
It is over 5,000 ft from Brodie to Mary…..North East…….. culminating at the base of three power poles stuck into a ridge ABOVE the Mary Mine workings where the First pole is east of Mary North’s center at the 6725’ contour line and the LAST pole is on the North East of the Mary North ore body just above the road at the 6425’ contour line…….. 3,750 ft of that length is NOT represented by an ore body on any of the old maps. The KNOWN mineralization covered by the old maps covers a width of mineralization from of 1000 ft in width trending to the North West from the Mary Mine to the south east to Drinkwater to the North West. Below are pics of the power poles. Only ONE is visible in the first pic….. pic 2 shows the three poles in the upper right hand corner of the pic.
https://images.investorshub.advfn.com/images/uploads/2009/11/26/kodmyPower_Pole_Ridge.jpg
https://images.investorshub.advfn.com/images/uploads/2009/11/26/mdtdkPower_Pole_Ridge_II.jpg
IF Rich Dixons drawings are accurate we could have several bands of mineralization that trend North West on the property and are layered at depth. THIS is where Vanderbuilt and Coyote come in……..they are on the North West and South West corners of what will become KNOWN as the Mineral Ridge Mining DISTRICT.
ADD to that a photo of the Black Mammoth Consolidated Mining Company STATEMENT for July 1942https://ih.fotothing.com/52771.jpg taken by Bestfitter
On THIS particular doc, they were working 20 Stopes…. Not one of them was LESS than .1 opt SOME were as high as .7 opt
THE AVERAGE worked out around .309 opt………… compare that to some of the currentday drill cores in the same area and we can see the mineralization when found seems to be consistent.
The land there was under explored for a reason….. it is AGAINST the law to employ Bighorn Sheep.
WE will be able to drill up Coyote using the company drill rig (available to us in Dec 2010) because it is actually the flattest part of the property (Nick Named “ Coyote Flats).
Vanderbuilt drilling will be contracted OUT as we need a tracked vehicle drill rig for that property – for those of you on the van ride up to MR last time we passed it on the right(Vanderbuilt) going UP the hill to MR. WHEN we met Rich Dixon and saw his presentation, Coyote was to just our north east.
VANDERBUILT was mined using the dynamite and bucket method……. The mineralization literally is at the surface in places.
IF the band of mineralization and lenses occur the entire length of mountain from the Brodie Pit to the extreme end of the Mary Mine workings which is a high narrower three sided ridge angling DOWN to the North East, and the mineralization there ALSO trends North West, it is easy to see how we could indeed HAVE the ozs on the property previously discussed.
MUCH of this information is courtesy of Vinman, Bestfitter and the information received at the mine tour via Rich and Ben and from company data gleaned from the Current previous websites of GPXM (some no longer exist on the internet) and from Scorpio’s website.
I rat hole a lot of this stuff…..
I would encourage all of you to READ the 43-101 that Micon did for Scorpio.
GPXM drilled 38,250 feet at MR in 2008(on budget @ $18-$22 a foot) and it was all incorporated into the numbers IN the 43-101
IF Scorpio defaults our interest in the property reverts to a 20% NAV royalty on the Mineral Ridge Property REGARDLESS of WHO ends up with the property – although I’m thinking there’s more to it than that I just didn’t ask.…….
There was a fairly lengthy discussion about the expansion of the current treasury shares from 400 million to 800 million. 9 million votes (vs 166 mil for) against the shares expansion. I BELIVE the company DID what it promised it would do with respect to the shares added in 2008, BUT I wasn’t abreast of the REASON for the shares and I wasn’t aware of the new business models better definition until AFTER I voted. (LIKE I was going to stop THAT freight train anyhow
Dave Caldwell is doing for the company what he is BEST at……. Consultant geologist work.
The molypile ( fairly decent sized) is going to be processed by a mill that is already operational (just needs tuned for moly)and the money will be used to advance the Peru properties.
We have already evaluated the 50 properties they refered to in the PR…. And apparently due to the current and ongoing banking crisis for miners there is NO END in site for additional properties to evaluate.
The company stated that they (now having had the first hand experience as a miner) have some special skill sets the bode well for the company going FORWARD and that MINING was NOT one of them.
They are going to focus their efforts on growing the company; avoiding entanglements we suffered through in the past and protecting the company with aggressive legal contracts like the one initiated with Scorpio(20% NAV Royalty). LOOKs like even the dude with the green tie actually helped us out.
There should be a presentation on the website POST the San Francisco Hard Assets Conference (after Thanksgiving). The company has 20 meetings scheduled with various companies during this time – rather than wasting $$$ flying to 20 different places.
IF we revisit Ashdown in the event of a WEX default it will most likely be treated like any of the other properties in the new business model – it will be an advanced property with operating mill – permits and tailings ponds. BUT it will require extensive drilling to prove up additional resource and UPDATE the 43-101. A bankable feasibility study will also probably be required before a mine operator can even consider the property and become encumbered in a JV with GPXM………we would probably end up with a 20-30% interest when all is said and done assuming WEX defaults……
We will know come this April IF WEX is going to succeed or NOT.
I SEE the light at the end of the TUNNEL – and this time??????
https://images.investorshub.advfn.com/images/uploads/2010/11/21/myrmh100_0310.jpg
IT’S NOT A TRAIN………..