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Ashdown Update

February 20, 2006

This diagram of the Sylvia Decline, prepared by Ed Falk - a member of the Golden Phoenix Technical Support Team - with assistance by Earl Harrison, shows the general layout of the Ashdown molybdenum deposits and progress toward restoring the original decline in preparation to begin bulk sampling. Please click on enlarge to receive a full-scale PDF download of the diagram. It will show the areas of past cave-ins, the recently completed by-pass, the current point of advance, and where the decline intersects the known and inferred mineralization. You can enlarge or reduce the PDF image to fit your screen. [Disclaimer: The diagram is a simplification of the actual system, and does not represent the full extent of mineralization.]

Please note the two prime areas of mineralization: The North Zone with occurances of 1-to-4% Mo present, which will be the first area encountered; the South Zone, with occurances of 1-to-20% Mo present. These figures are derived from past records of drill and assay results performed by ACNC when the decline was first dug 25 years ago, and later augmented by drilling results from GPXM’s 2004 drill program. They are further supported by the results of stockpile production undertaken by our JV partner, Win-Eldrich, this past fall at a toll mill in Montana.

As progress is made toward the restoration of the original workings, the Ashdown Mill continues to advance. The building has been fully enclosed and work is proceeding on wiring and piping. Mr. Larry Hoffmann, a Professional Engineer, has been contracted to visit the mill this week in order to inspect and advise on its layout in advance of commissioning. Mr. Hoffman has extensive experience processing molybdenite. He assisted in milling the Ashdown stockpile material in Montana last fall, and consequently is acquainted with its physical and chemical characteristics. The above photo shows the fully-enclosed mill building, far left, the fine ore bin and its conveyor at center, the secondary crusher and its conveyor to the right, and the primary crusher, far right. Ore will be dumped into the primary crusher from transport trucks coming from the mine. The ore will be crushed and then conveyored to the secondary crusher, recrushed and conveyored into the fine ore bin, from where it will feed into the ball mill.



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