Golden Phoenix finishes resource study

American junior Golden Phoenix Minerals (GPXM-Q) has completed its sixth and final resource study at the Borealis gold-silver property in Nevada’s Mineral Cty.

At Northeast Ridge, which is part of the Polaris zone, measured and indicated resources are pegged at 3.3 million tons grading 0.021 oz. gold per ton (equivalent to 71,100 oz.) and 0.11 oz. silver (295,500 oz.).

In all, Golden Phoenix has so far identified a resource of 30.9 million tons averaging 0.045 oz. gold and 0.21 oz. silver per ton in the Borealis and Polaris zones. The resource is contained in the Borealis, Freedom Flats, Graben, Polaris, East Ridge and Northeast Ridge targets.

The company intends to prepare a development plan, including economic studies, drilling plans, budgets and, ultimately, a feasibility study.

“Golden Phoenix is seeking a joint venture with a major mining company to complete drilling on the project and to place it into production,” says President Michael Fitzsimonds. “If one is not forthcoming, then we will place the property into production ourselves, from several deposits.”

Golden Phoenix also intends to evaluate the resource potential of several peripheral areas where gold mineralization has been cut, including Bullion Ridge, Cerro Duro, Jaimes Ridge and Purdy’s Peak. Also to be evaluated is residual leachable gold on five reclaimed leach pads that contain 10.7 million tons of previously mined ore.

In March, Calgary-based Newmex Minerals (NMM-V) acquired an option to earn a 32% interest in the Borealis property. Nemex agreed to pay US$236,600 to acquire the project, either in cash or through a combination of cash and shares.

The property hosts the Borealis mine, which produced about 600,000 oz. gold in the 1980s, when it was operated by Echo Bay Mines.