"The Ashdown Molybdenum Mine is one of the highest-grade molybdenum mines in the world. It is jointly owned by Golden Phoenix, a 60% partner, and Win-Eldrich Mines Ltd., a 40% partner. Golden Phoenix serves as manager of the project in conjunction with a management committee, and is working to eventually make Ashdown a "standalone" operation.

The high-grade molybdenum currently being mined on the Ashdown Property is from the Sylvia Vein. The vein, which extends to surface, dips at about 45 degrees and ranges in width from 4 to 14 feet thick. The known strike length of this structure, which grades up to 15% molybdenum, is roughly 1,800 feet and it is open on strike and to  depth. There are indications of mineralization at surface and from drilling along 4,500 feet of the claim group. The thinking of the geologists is that the mineralization most likely extends to considerable depths and that it may be possible to find the source of this incredibly rich deposit, which in theory could morph into a major mine.

Of course, all of that is hypothetical at this stage. The company has previously reported estimates in excess of 4 million pounds of molybdenum within the mineralized zone under study. A 43-101 report that is expected to validate a similar sized resource is nearing final stages of completion. That should be helpful to investors, but what I believe will really shore up confidence will be a drill program that will extend the prospects for a longer life and/or larger-scale molybdenum project. Given what is already known about the existing Sylvia Vein, its high grades, and the geological potentia l for it to extend to depth, the probability of scaling up this operation would appear to be quite high. The company is planning a 10,000- to 20,000-foot drill program within the 1,800-foot known strike length to increase the resource under 43-101 guidelines. In my view, a successful drill program extending the size and life of the Ashdown Project, combined with continued profitable production, should launch this company’s shares to much higher levels."

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