Golden Phoenix Reports on Ashdown Mine Development and Molybdenum Production

    SPARKS, Nev., Sept. 6 /PRNewswire-FirstCall/ -- Golden Phoenix
 Minerals, Inc. (OTC Bulletin Board: GPXM) is pleased to report that
 operational efficiencies continued to improve through the second quarter as
 production capability was expanded at its majority owned Ashdown Project
 LLC business unit, operated through a joint venture with Win-Eldrich Mines
 Ltd. Development work at Ashdown has been ongoing, with full-scale
 production from multiple stope headings targeted for early 2008.
     During the second quarter of 2007, the Ashdown Project LLC posted sales
 of molybdenum concentrates totaling $4,466,395, which represents an
 increase of over $3.6 million, or 460%, from its first quarter sales.
 Operating costs and expenses for the second quarter were $2,276,789,
 compared to $1,680,068 for the first quarter reflecting an acceleration in
 budgeted staffing from approximately twelve to twenty-four miners and from
 approximately nine to eighteen milling and support personnel, as well as
 other costs related to the ramp up in production.
     The advancement in development at both the mine and mill resulted in a
 total of 144,882 pounds of molybdenum (Mo) being sold in the second quarter
 at a cost of $15.71 per pound as compared to 64,942 pounds at $25.87 per
 pound during the first quarter. These per-pound calculations represent
 fully loaded, total costs that include ore production, barren-rock
 development, general and administrative expenses, accretion, depreciation
 and amortization expenses.
     The second quarter earnings demonstrate that the systematic ramp-up
 beyond initial budgeted expenditures over the past six months is resulting
 in a transition to profitability. As the Project evolves from a focus on
 infrastructure development to concurrent mining of multiple stopes, an
 increase in the production and sale of concentrates, together with a
 decrease in the Project's total cost per pound is expected. Until then,
 ongoing development work and equipment upgrades and repairs during the
 current third quarter are expected to reduce financial performance and the
 rate of expanded production in the third quarter, but will position the
 Project for sustainable full-production rates later in the year.
     The Project's fleet of rolling stock has recently been expanded with
 the acquisition of a second 10-ton haul truck and a third 2-yard mucker.
 These additions allow for rotation of equipment through a preventative
 maintenance program designed to increase equipment life, availability and
 output. By maintaining high safety standards, implementing preventative
 maintenance and upgrading equipment, lower unit costs and higher rates of
 production are expected.
     The grinding circuit's ball mill was taken off-line in early August to
 replace worn portions of the protective rubber plates that line the inside
 of the drum. Preventative maintenance items were moved forward and have
 been performed in preparation for sustained 24/7 operation once the custom
 fabricated replacement liner has been installed, scheduled in the first
 part of September.
     This unplanned down-time has slowed the increase in the rate of
 production for the period of time effected. In return, it has provided the
 opportunity to implement improvements to the flotation circuit, including
 design and construction of a system to re-process tailings in order to
 recover residual moly from the tailings pond. Following several days of
 trial operation, these innovations are resulting in moly recoveries from
 the tailings pond ranging from 45-94%, with an average of 83%.
     Due to the exceptional head grades of the ore at Ashdown, the recycled
 tailings deliver feed ranging from 0.2 to 0.9% Mo (with an average of 0.51%
 Mo). Such grades are higher than most primary ore from comparable moly
 operations, allowing recovery of between 500 and 1500 pounds of concentrate
 per shift. Safety procedures require that hydraulic suctioning of material
 from the tailings pond occur only during daylight hours. Lot 11 will be
 sold this week with half of its 12 Supersacks comprised of moly recovered
 from the tailings pond.
     As anticipated, concentrates produced from the tailings contained lower
 Mo and higher copper (Cu) compared to concentrates produced from fresh ore.
 No suppression of Cu was attempted since the tailings were run for quantity
 of saleable material, with the quality of the product being a secondary
 consideration. The buyer is levying an industry-standard price adjustment,
 termed a "penalty", of 5.4% in the case of Lot 11 to compensate for Mo and
 Cu being out of specification with the brokerage contract. The value of the
 resulting provisional sale is $557,900.
     Underground, both ore extraction and development work have continued
 throughout this period. Over 3600 tons of ore have been stockpiled in
 advance of the re-start of the ball mill anticipated in September. With the
 accumulation of a month's worth of mill feed, underground crews are now
 focusing on upgrading the underground electrical systems, rehabilitating
 timber support where needed, fireproofing the portal entrance area, and
 advancing the construction of a secondary escape way in accordance with
 recent MSHA directives. Excavation and stockpiling of ore continue in
 anticipation of sustained mill operation through the remainder of the year,
 once the ball mill is returned to service.
     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;
 mining and milling equipment failures and breakdowns; 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
 
 

SOURCE Golden Phoenix Minerals, Inc.