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Golden Phoenix Begins Gold Analysis of Mineral Ridge Leach Pads

Posted on: Wednesday, 31 October 2007, 06:00 CDT

SPARKS, Nev., Oct. 31 /PRNewswire-FirstCall/ -- Golden Phoenix Minerals, Inc. (BULLETIN BOARD: GPXM) reports that its Technical Services Group (TSG) has commenced processing drill samples taken from the Mineral Ridge leach pads in order to determine how much gold remains in the heaps material, and whether that gold can be recovered economically through standard milling processes. Mineral Ridge is a past producing gold and silver property located in Esmeralda County, Nevada. Golden Phoenix purchased its 100% undivided interest in the mine for $225,000 in cash, and the assumption of certain debt obligations in 2000.

Preliminary in-house assaying suggests that there may be significant gold remaining in the heaps. This finding is consistent with a compilation of metallurgical balancing for ounces-loaded to ounces-recovered over the life of the heap leach facility. The newly initiated analysis involves preparing 439 samples for metallic screen analysis. A pronounced nugget effect has been noted in the original data which was collected from auger drilling of the heaps conducted in 2001 and 2003. Gravity testing with a Knelson Bowl has confirmed that course gold remains in the heaps. The metallic screen analysis is designed to produce more reliable values where course gold is known to exist.

The samples being analyzed were collected on five foot intervals from 97 vertical holes drilled on a 100-foot grid. In selected areas this grid spacing was decreased to 50-foot centers. Individual holes were drilled to depths ranging between 5 and 50 feet. The determination of contained gold in the screened samples will be made by American Assay, an independent and certified lab based in Reno, Nevada. Depending on the results of this lab work, in-fill drilling may be scheduled and performed under the supervision of an independent geologist in order to map distribution and tenor of the remaining gold, and to determine if those ounces can be economically extracted.

The analysis of the auger drilling is being supported by metallurgical work that has been initiated on the same material to better understand the deportment of the remaining gold. Initial interpretation of the heaps data is expected by early next year. The TSG is also in the process of updating the existing block models based on historic drilling, and laying out future exploration drilling based on geologic modeling designed to target the projection of repeated patterns outlined by the historic high-grade shoots.

Since its inception, Mineral Ridge has reported historic recovery of over 600,000 ounces of gold, principally through the use of traditional milling followed by gravity or cyanide tank leaching treatment of the fine pulps produced. Beginning in the 1990's, a series of operators attempted to convert Mineral Ridge to a heap leaching operation. Three separate attempts were unsuccessful, due in part to the chemistry and physical deportment of the gold as well as the conditions under which it was leached. Review of production data from the heap leach facility suggests that recoveries were as low as 50% at times, and that a mineral inventory of between 10,000 and 30,000 ounces may remain trapped on the leach pads. Until the current feasibility study integrating all possible sources of gold is completed, it will not be known whether any of this inventory can be recovered economically.

David Caldwell, CEO and Chief Geoscientist for Golden Phoenix observed, "We have engaged a feasibility team to examine all possibilities at Mineral Ridge, including potential conversion of the Mineral Ridge heaps from a bonded reclamation liability into a commercial asset. A large portion of the gold recovery cost is already sunk in extracting, transporting and crushing the heaps material to nominal 1/10th of an inch. With the price of gold trending higher, our TSG is now tasked with quantifying the existing Mineral Ridge asset value, and expanding known resources through unlocking the local and regional exploration potential in order to deliver value to market."

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

Golden Phoenix Minerals, Inc. is a Nevada-based mining company committed to deliver value to its shareholders by acquiring, developing and mining superior precious and strategic metal deposits in North America using competitive business practices balanced by principles of ethical stewardship. Golden Phoenix owns the Mineral Ridge gold and silver property near Silver Peak, Nevada, the Northern Champion molybdenum mine in Ontario, Canada, and is manager/operator and majority owner of the Ashdown Project LLC gold and molybdenum property held jointly by Golden Phoenix Minerals, Inc. and Win-Eldrich Mines, Ltd. of Toronto, Canada through its US subsidiary, Win-Eldrich Gold, Inc.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements by David A. Caldwell, CEO, and other statements regarding the expansion of production at the Ashdown Mine, optimism related to the business, expanding exploration and development activities and other statements in this press release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business. Words such as expects, anticipates, intends, plans, believes, sees, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements 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. In addition, actual results could vary materially based on changes or slower growth in the molybdenum and gold markets; the potential inability to realize expected benefits and synergies in the Company's mining operations; domestic and international business and economic conditions; changes in the mining industry for base and precious minerals, especially molybdenum; unexpected difficulties in expanding production at the Company's mines; changes in customer demand or ordering patterns for molybdenum; changes in the competitive environment including pricing pressures or technological changes; technological advances; shortages of skilled miners; the need for additional capital and other risk factors listed from time to time in the Company's Securities and Exchange Commission (SEC) filings under "risk factors" and elsewhere. The forward-looking statements contained in this press release speak only as of the date on which they are made, and 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: Golden Phoenix Minerals, Inc. Robert Martin President 775/853-4919 E & E Communications Paul Knopick 949/707-5365 pknopick@eandecommunications.com

Golden Phoenix Minerals, Inc.

CONTACT: Robert Martin, President of Golden Phoenix Minerals, Inc.,+1-775-853-4919; or Paul Knopick of E & E Communications, +1-949-707-5365,pknopick@eandecommunications.com, for Golden Phoenix Minerals, Inc.

Web site: http://www.golden-phoenix.com/

Source: PRNewswire-FirstCall

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