Golden Phoenix Announces Stand Down of Active Mining at the Ashdown Projectadmin
Golden Phoenix Minerals, Inc. announced that in response to the sharp reduction in demand and price for molybdenum worldwide, the Ashdown molybdenum mine in Humboldt County, Nevada has been placed on care and maintenance with a significant reduction in force until further notice.
The Ashdown mine produces molybdenum concentrate which is roasted to the oxide form used primarily as a hardener and anti-corrosive agent in steel manufacturing. The current slowdown in construction and auto sales has caused the steel industry to take aggressive measures to reduce production, and to consume existing inventories. Molybdenum oxide prices have experienced a dramatic collapse in response to this growing economic downturn, with the Platts’ Metals Week average price dropping from the $33 to $34 range to the $11 to $13 range in the last month.
The Company, together with 40% owner Win-Eldrich Mines Ltd., is currently assessing all options related to mining operations at Ashdown with a near term view to conserving cash resources and stabilizing the Project’s finances.
Market experts are suggesting that the downward pressure on moly oxide prices may continue for the immediate future, but that inventories remain at very low levels and pricing could recover with normalization of construction and commerce patterns.
For more information on Golden Phoenix Minerals, please visit their corporate website at http://www.Golden-Phoenix.com/. In addition, investors are encouraged to call the Company’s investor relations representatives, Equiti-trend Advisors, which can be reached toll-free at (800) 953-3350.
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 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.