Golden Phoenix plans to resuscitate Mineral Ridge

Denver — Golden Phoenix Minerals (GPXM-O) intends to resume production at the Mineral Ridge mine in southwestern Nevada. To do so, the Reno-based company will try to secure US$2 million in financing and arrange a reclamation bond.

Meanwhile, the company is considering installing a gravity circuit as an alternative to cyanide heap-leaching. Tests, now under way, will determine whether or not such a circuit is viable. One advantage to the gravity circuit is that it would reduce the reclamation bond to less than US$2 million, whereas, for cyanide heap leaching, it would be US$3.1 million.

In March, the revised reclamation plan was approved by the U.S. Bureau of Land Management and the Nevada Division of Environmental Quality. In addition, Golden Phoenix received permits for water pollution control, storm water and air quality.

At 1,800 tons per day, the mine would produce 40,000 oz. per year. Reserves stand at 2.7 million tons grading 0.079 oz. gold per ton, equivalent to 209,000 oz.

Golden Phoenix bought the twice-failed operation in November 2000 for US$225,000. Heap leaching at Mineral Ridge has since produced 441 oz. gold and 189 oz. silver. The metals were sold to pay for maintenance costs.

Production dates back to the late 1800s, though modern mining did not get under way until 1997, when the owner was Vancouver-based Cornucopia Resources. Capital costs were US$17 million at the time, though the project never reached commercial production levels and consequently closed in the same year.

In October 1998, Vista Gold (VGZZ-X) acquired the mine from Cornucopia for US$500,000. Vista restarted production in February of the following year, only to shut down about a year later, again owing to low output levels. Vista then placed its Mineral Ridge subsidiary under bankruptcy protection.