SOURCE: Golden Phoenix Minerals, Inc.

Golden Phoenix Minerals, Inc.

May 09, 2011 09:42 ET

Golden Phoenix Joint Venture Partner Scorpio Gold Awards Mining Contract for the Mineral Ridge Gold Deposit, Nevada

SPARKS, NV--(Marketwire - May 9, 2011) - Golden Phoenix Minerals, Inc. (OTCBB: GPXM) joint venture partner Scorpio Gold announces that a mining contract has been signed with Ledcor CMI Inc. ("Ledcor") for its Mineral Ridge Gold heap leach project. Ledcor is currently providing contract mining services for both Barrick Gold Corporation and Newmont Mining Corporation in Nevada.

Golden Phoenix currently maintains a thirty percent (30%) interest in the Mineral Ridge Gold Project 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 Mineral Ridge project continues to advance with a growing team of experts," stated Tom Klein, CEO of Golden Phoenix. "The recent addition of individuals and firms whose experience includes work with Barrick, Newmont and Fronteer Gold is creating a foundation for anticipated future growth."

The initial term of the contract extends to May 1, 2012 and is renewable annually until the completion of the project. The current mine plan contains 3.2 million tons of mineralized material to be mined plus waste rock extraction over a period of 41 months. The mine plan will be updated on annual basis.

Ledcor will begin mobilization of equipment on May 9, 2011 with setup of site facilities expected to be completed by June 3, 2011. Preparations for the start of mining are to begin this week with the cleaning of loose material from previously mined safety benches and extraction of mineralized material stock piles left behind by the previous owner/operator.

Initial production is slated for approximately 14,000 total tons per day ramping up to full production schedule of approximately 20,000 tons per day.

Ledcor will be responsible for all aspects of drilling, blasting, loading and hauling of material and Mineral Ridge Gold personnel will be responsible for pit and dump layout, blast hole surveying and all aspects of grade control.

In addition, Scorpio Gold announces that on May 2, 2011, a second shipment of loaded precious metal carbon was shipped from the Mineral Ridge facilities to Metals Research in Kimberley, Idaho for processing.

Mr. Peter J. Hawley, PGeo, is Scorpio Gold's Qualified Person and CEO for the various Scorpio Gold projects. Mr. Hawley is responsible for the current exploration and development program at Mineral Ridge.

Scorpio Gold reports its results under Canadian mining and TSX Venture Exchange 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.

Please visit the Golden Phoenix website at: www.golden-phoenix.com.

About Golden Phoenix: Golden Phoenix Minerals, Inc. is a Nevada-based mining company whose focus is Royalty Mining in the Americas. Golden Phoenix is committed to delivering shareholder value by identifying, acquiring, developing and joint venturing gold, silver and strategic metal deposits throughout North, South and Central America. Golden Phoenix owns, has an interest in, or has entered into agreements with respect to mineral properties located in the United States, Canada and Peru including its 30% interest in the Mineral Ridge gold project near Silver Peak, Nevada.

Forward Looking Statements: Information contained herein regarding optimism related to the business, expanding exploration, development activities and other such statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to the safe harbors created thereby. While Golden Phoenix believes such statements are reasonable, they are based on current expectations, estimates and projections about the Company's business and 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, domestic and international business and economic conditions, and other risk factors listed in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere. 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 Information

  • For More Information Contact:
    Robert Ian
    Director of Corporate Communications
    (775) 453-4741
    Email Contact