Ashdown Mine - Nevada
2% Net Smelter Royalty - Golden Phoenix owns a 2% Net Smelter Royalty on the Ashdown Project.
- Project size: 6000 acres
- Primary focus: gold and molybdenum
- Golden Phoenix owns a 2% NSR on the Ashdown Project
- Golden Phoenix owns 3,000,000 shares of common stock in Win-Eldrich Mines Limited (WEX), parent company of Win-Eldrich Gold, Inc. (WEG)
- Golden Phoenix has the right to designate and appoint one (1) individual to serve on the Board of Directors of WEX
The Ashdown Property is located 110 miles northwest of Winnemucca and 10 miles southwest of Denio Junction, in Humboldt County, Nevada. The property was discovered in the late 1800's and was mined for gold from high-grade gold veins. Ashdown produced an estimated 52,000 tons of ore averaging 0.31 ounces of gold per ton until the project was closed in 1942 due to WWII.
From 1979 to 1994, approximately $8 million USD in exploration and drilling was conducted on the Ashdown Property. In 1983, molybdenum prices dropped from $18/lb to $3/lb and subsequent focus on the property changed to evaluating potential gold mineralization.
In 2003, molybdenum prices began to rise. Golden Phoenix and Win-Eldrich entered into a joint venture in 2006 and began producing molybdenum concentrate for sale. The credit collapse of 2008 resulted in a dramatic drop in the price of molybdenum from over $30/lb to under $10/lb which resulted in the Ashdown Project being placed on temporary care and maintenance status.
In May of 2009, Golden Phoenix sold its interest in the Ashdown Project to Win-Eldrich. In September 2009, Ashdown recommenced production of molybdenum. In October 2011, Golden Phoenix and Win-Eldrich completed a Note Settlement closing which concluded the sale of the Ashdown Project. As part of that closing, Golden Phoenix received a 2% NSR on the Ashdown Project and 3,000,000 shares of common stock in Win-Eldrich.
The Ashdown Project is currently focused on gold and molybdenum. The Ashdown Project has been idled by Win-Eldrich, pending more favorable market conditions for molybdenum and available financing.