Golden Phoenix Minerals, Inc. (OTC Bulletin Board: GPXM) has announced Phase I geologic mapping and outcrop sample collection for assay analysis as it relates to gold and silver mineralization has been completed on the Coyote Fault Gold and Silver Project.
Approximately 7 square kilometers of the Coyote Fault property was mapped and 29 outcrop samples were collected inside the property boundaries for assay analysis by Silver Spartan LLC and submitted to ALS Laboratory Group in Elko, Nevada for gold and silver analysis.
Of particular interest were sample numbers 009 (5.89g Au), 010 (0.605g Au), and 011 (0.117g Au) that were taken from mineralized outcrops near the southern end of the Coyote fault claim. This area is located 700 meters north of the Blue Light gold deposit on the adjacent Mineral Ridge gold property and 150 meters east of the Coyote fault line. The average grade of all 29 outcrop samples was 0.3 grams of gold, with the richest sample being sample number 009 at 5.89 g/t Au and the lowest being certain samples yielding 0 g/t Au.
According to the report by Silver Spartan LLC, the proximity to the Coyote fault and the contact between the metamorphic rock and the large granite exposure justifies further exploration for gold and silver mineralization both above and below the surface.
The report states the Coyote Fault property has the same geology and depositional model as the rest of the Mineral Ridge mining district. The deposits of the Mary and Drinkwater mines on the adjacent Mineral Ridge gold property were not evident from the surface; however the small, mineralized showings in the area eventually lead to the discovery of those deposits.
The report concludes the data supports favorable exploration potential for the Coyote Fault property.
"This first phase geologic report provides the baseline data and suggests how to start a potentially successful exploration program on the Coyote Fault property," stated Tom Klein, CEO of Golden Phoenix. "Plans are currently underway for Phase II exploration in the first half of 2011."
The Coyote Fault property is located in the middle of the Walker Lane tectonic belt with Sierra Block uplift to the west and the Basin and Range to the east. The property is on the northern flank of Mineral Ridge and is along the eastern edge of the Silver Peak Range.
Although the early results of exploration on the Coyote Fault property look promising and may support the Company's decision to continue expending its resources on further exploration, the test results set forth above are not yet sufficient to establish any proven or probable ore reserves under traditional mining standards, nor has there been sufficient exploration to determine if the extraction of precious metals on this property is feasible, from an economic point of view. Investors should not infer from these early assay results that there exists sufficient amounts of precious metals on this property to support profitable mining operations now, or in the immediate future.
Source: Golden Phoenix Minerals, Inc.