•  Historically, there has been a glut of moly because most of it is produced as a byproduct of copper.
•  During the 1990s, mine production was high compared to demand resulting in low metal prices, so few new mines were discovered or developed.

•  Due to the collapse of communism and the gradual acceptance of capitalism in China in the mid 1980s, the Chinese economy began to grow at a rapid pace.
•  China was once a major exporter of many metals, but in 2002 it began to import moly.

•  As a result, in combination with rising demand from India and other Asian countries and lack of new sources of moly, prices began to rise.

• The Sylvia Vein is structurally related to the Ashdown Gold Vein to the north and is exposed in Vicksburg Canyon, where additional drilling by ACNC indicates additional molybdenum mineralization.

• Total strike length of moly mineralization in the vein system is over one mile.

• The vein has an average width of about 8 feet, dips 45-90 degrees and is mineralized over a down dip distance of at least several hundred feet.

• Grades as high as 15% Mo were encountered in drilling and underground sampling, among the highest moly grades ever reported.

• In 1982-83, ACNC drove a 1000 foot decline into the Sylvia Vein and took 32 multi-ton bulk samples.

• Moly prices collapsed in 1983 due to Chinese dumping, and ACNC left a 1400 ton bulk sample with an average grade of nearly 2% Mo stockpiled near the mine mouth.

• The property was acquired by Win-Eldrich in 1987, which has maintained it in good standing in hope of a sustained increase in prices.

• In 2004, Win-Eldrich entered into a letter of intent to form a joint venture with Golden Phoenix Minerals.

• Due to high moly prices, fears of another price collapse and delays in mine development, in 2005 Win-Eldrich shipped the 1400 ton bulk sample to a contract mill and produced and sold about 37,000 pounds of Mo.

• Fortunately, moly prices have stayed high and are now expected to stay high for a few years.

• In 2006, Golden Phoenix earned a 60% interest in the property by spending five million dollars on mine development.

• Also in 2006, Win-Eldrich and Golden Phoenix formed the Ashdown Project LLC, which sold its first moly concentrates in December.

• From Decebmer 2006 to November 2008, the Ashdown Project LLC produced and sold approximately 800,000 pounds of MoS2 in 35 truckloads of concentrates. The mine was forced into care and maintenance in November 2008 by the precipitous drop in moly prices (from over $30/lb to less than $10/lb).

• In March 2009, the mine reopened at limited production to avoid loss of workings and damage to the mill. As of July 1, 2009, the Ashdown LLC has shipped three truckloads of MoS2 concentrate.

• In 2009, moly prices have risen from $7.50/lb to over $10/lb and the Ashdown LLC expects this trend to continue.

For details on world wide molybdenum production, see Molybdenum

For a reserve evaluation, see NI 43-101 Technical Report and Feasibility Study Summary