Completion of NI 43-101 Technical Report and Feasibility Study Ashdown Project LLC, Humboldt County NV



    TORONTO, March 27 /CNW/ - Win-Eldrich Mines Limited (WEX, TSX Venture
Exchange) is pleased to announce the completion of a Canadian Securities
Administrators National Instrument 43-101 compliant Technical Report and
Feasibility Study (the "Technical Report") on the Ashdown molybdenum mine,
located near Denio, Nevada. The Ashdown Mine is owned by Ashdown Project LLC,
of which Golden Phoenix Minerals, Inc. is the majority owner (60%) and
Win-Eldrich, through its wholly-owned subsidiary, Win-Eldrich Gold, Inc., is
the minority owner (40%).
    The Ashdown Mine is a historic gold producer (1880s to 1942) and recent
molybdenum sulfide concentrate producer (2005-2007). The purpose of the
Technical Report was to determine mineable reserves for mine planning
purposes. The projected reserve is based on historic (1979-2004) drilling and
drifting and recent production. The Technical Report was authored by
Jonathan Sprecher (geology and economics), Terry Perkins (metallurgical
engineering) and Neil Prenn and Jaak Daemen (mining engineering), each of whom
meets the requirements of independent Qualified Person under NI 43-101.
Jonathan Sprecher has reviewed and approves this press release.
    Mineral reserve and resource estimates were compiled as of January 1,
2008. The following projections of tonnage, contained pounds and average grade
from the NI 43-101 Report is based on a cut-off grade of 0.65% Mo. This
cut-off grade is based on a projected Mo price of US$30 per pound in 2008
declining to US$22.5 per pound in 2011. These projections are in addition to
production from 1983-2005 (approximately 37,000 lbs Mo) and 2006-2007
(approximately 403,000 lbs Mo). 2007 production confirmed the validity of
projection reserves from historic drilling.

    
    Mineral Reserves:

    -------------------------------------------------------------------------
    Classification        Tons (Diluted)        Pounds Mo         Grade (%Mo)
    -------------------------------------------------------------------------
    Proven                       47,602         2,773,908               2.91
    Probable                     68,916         1,074,023               0.78
    -------------------------------------------------------------------------
    Totals                      116,517         3,847,930               1.65
    -------------------------------------------------------------------------

    Mineral Resources:

    -------------------------------------------------------------------------
    Classification                 Tons         Pounds Mo         Grade (%Mo)
    -------------------------------------------------------------------------
    Measured                     36,653         2,773,908               3.78
    Indicated                   145,063         2,710,618               0.93
    -------------------------------------------------------------------------
    Totals                      181,716         5,484,525               1.51
    -------------------------------------------------------------------------
    


    The Mineral Resources include Mineral Reserves. The difference between
the Mineral Resource and the Mineral Reserve totals is the exclusion of the
North Area from the Mineral Reserve estimate due to insufficient drill hole
density.

    Summary of Planned Mine Activities based on the reserve estimate:

    
        Mine Life:               3.3 years beginning January 1, 2008
        Milling Rate:            100 Tons per Day
        Tonnage Mined:           116,500 Tons (diluted)
        Processing recovery:     90%
        Molybdenum Recovered:    3,848,000 Pounds
        Average Operating Costs: $300 per Ton
    

    An economic model was prepared for the Ashdown Mine based on the
following assumptions for the base case: a declining molybdenum metal price
from US$30.00 per pound in 2008 to US$22.50 per pound in 2011 (2007 average
was US$31.30), a capital investment of US$5.35 million during this period, and
mining of 116,500 tons of ore from the South Area of Ashdown, above the
4375 Level and north of 8,550N. Actual cost of operations in 2007 were used in
the economic analysis. The life-of-mine average cost of producing a pound of
Mo is US$10.10. This cost should decline as efficiency improves and if
additional reserves are found. The model was prepared on a pre-tax basis, as
the tax burdens are different for the US and Canadian partners of the Ashdown
Mine. In the base case the Ashdown Mine has a Net Present Value (NPV) of
US$35,322,829 at an 8% discount rate.
    Sensitivities to molybdenum price, capital and operating cost, grade and
amount of reserves on the NPV were considered. The most significant variables
influencing the model were the price of Mo and Mo grade and, to a lesser
extent, operating costs. The results are summarized in the following table:

    
    -------------------------------------------------------------------------
    Case Description                    NPV at 8%(US$)              % Change
    -------------------------------------------------------------------------
    Base Case                           $  35,322,229
    -------------------------------------------------------------------------
    Sensitivities
    -------------------------------------------------------------------------
      Mo Price Increase by 10 %         $  42,247,708                    +20
    -------------------------------------------------------------------------
      Mo Price Decrease by 10 %         $  28,397,950                    -20
    -------------------------------------------------------------------------
      Operating Costs Increase by 10 %  $  32,359,617                     -8
    -------------------------------------------------------------------------
      Operating Costs Decrease by 10 %  $  38,286,041                     +8
    -------------------------------------------------------------------------
      Capital Costs Increase by 10 %    $  34,849,388                     -1
    -------------------------------------------------------------------------
      Capital Costs Decrease by 10 %    $  35,796,270                     +1
    -------------------------------------------------------------------------
      Grade Increase by 10 %            $  42,247,708                    +20
    -------------------------------------------------------------------------
      Grade Decrease by 10 %            $  28,558,447                    -19
    -------------------------------------------------------------------------
      Reserves Increase by 10 %         $  37,671,394                     +7
    -------------------------------------------------------------------------
      Reserves Decrease by 10 %         $  33,435,699                     -5
    -------------------------------------------------------------------------
    

    Ashdown Project Background:

    The Ashdown Property is located about 110 miles northwest of Winnemucca
and 10 miles southwest of Denio Junction in Humboldt County, Nevada. The
Ashdown Property contains 293 unpatented lode claims covering about 9 square
miles in the northern Pine Forest Range.
    Following its discovery in the late 1800s, the Ashdown Property was mined
for gold from high-grade veins, producing a reported 52,000 tons of ore
averaging 0.31 ounces of gold per ton until it was closed in 1942.
Mineralization on the Ashdown property is found in two large quartz veins
hosted in Jurassic metasediments and a Cretaceous quartz diorite: the
north-south trending, west dipping Sylvia Vein and the northwest-southeast
trending, west dipping Main Vein. Vein true thickness averages about 7 feet.
    From 1979 to 1994 approximately US$8 million in exploration and drilling
was conducted on the Ashdown Property. During this period 293 reverse
circulation and diamond core drill holes totaling 73,300 feet were drilled. In
1982 and 1983 a joint venture between American Copper and Nickel (ACNC), a
subsidiary of INCO, and Outokumpu Mines, Inc. (OMI), a subsidiary of the
Finnish mining company Outokumpu Oy, drove 1,800 feet of decline, cross cut
and drift to obtain bulk samples of the molybdenite mineralization from the
Sylvia Vein and drilled 31 underground diamond core drill holes totaling
5,909 feet to evaluate ground conditions and delineate the Sylvia Vein.
Drilling has detected molybdenite mineralization from 105 feet to 630 feet
below the surface over an area 840 feet wide by 1,800 feet long. Following a
drop in molybdenum prices from $18 per pound to $3 per pound in 1983, the
focus for ACNC and OMI and subsequent exploration companies changed to
evaluating the gold mineralization.
    With the sustained rise in molybdenum and gold prices in 2003, Golden
Phoenix and Win-Eldrich agreed in February 2004 to work towards forming a
joint venture to develop the mineral resources located at the Ashdown Mine. In
2004 Golden Phoenix drilled nine drill holes to confirm the molybdenum
mineralization and in 2005 started reopening the Sylvia decline and commenced
construction of the Morris flotation mill. In 2005, Win-Eldrich milled
approximately 2000 tons of ore that had been mined and stockpiled in 1983,
producing about 37,000 lbs of Mo for an average price of about US$25 per
pound. Ashdown Project LLC was formed by the two companies on September 28,
2006 to formalize their business relationship. The Sylvia Sill Drift was
reached in September 2006 and mining and milling operations commenced in
November. The Ashdown Mine began producing a salable molybdenum concentrate in
December 2006 and has been mining molybdenum from the Ashdown Mine and
concentrating the ore in the Morris Mill more or less continuously since then.
In 2007, 18,151 tons of ore were milled and 395,634 pounds of molybdenum were
produced and sold for an average price of approximately US$31 per pound.

    Exploration Potential:

    The potential to discover significant new resources outside of the
current reserve area is excellent. The nature of this potential can be divided
into three broad categories. The first is the possibility of converting vacant
blocks within in the current ore reserve model to reserves. These blocks were
excluded from the reserves due to the low density of drilling and/or to large
gaps in drilling between mineralized blocks. The second area is the down dip
and strike extensions of the Sylvia and Main veins (below 450 feet and both
north and south of the 1,800 feet of strike length of the current reserve
model). The third area is regional: anomalous molybdenite geochemistry has
been demonstrated in wide-spaced drilling, rock-chip samples and in soil
samples over a three mile length along the projected strike of the currently
defined reserve. In addition, a few drill holes intercepted vein
mineralization similar to that in the Sylvia Vein, but the extent of these
veins or their relationship to the Sylvia or Main veins cannot be determined
due to the limited exploration drilling on the property.
    The project area as a whole is at a very early stage of its development
from an exploration standpoint, with most of the work on the molybdenum
mineralization being geographically limited to a very small footprint (7
acres) within a large claim area (6000 acres). The Technical Report recommends
an exploration program that is intended to determine whether current drill
indicated mineral resources may be upgraded to the proven reserve category,
and to identify the extent of mineralization beyond the margins of the known
resource, both down dip and along strike, as described above.
    A copy of the Technical Report will be made available by Win-Eldrich on
SEDAR at www.sedar.com.

    Cautionary Note to US Investors

    The United States Securities and Exchange Commission permits mining
companies, in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or produce. We
use certain terms in this news release, such as "Measured" and "Indicated"
Resources, which although recognized and required by Canadian securities
regulatory authorities, are not recognized by the SEC and are strictly
prohibited from being included in filings with the SEC by U.S. registered
companies. Investors are cautioned not to assume that any part or all of
mineral deposits in these categories will ever be converted into reserves.
    This news release includes certain forward-looking statements within the
meaning of applicable securities laws concerning the future performance of our
business, its operations and its financial performance and condition, as well
as management's objectives, strategies, beliefs and intentions.
Forward-looking statements are frequently identified by such words as "may",
"will", "plan", "expect", "anticipate", "estimate", "intend" and similar words
referring to future events and results. Forward-looking statements are based
on the current opinions and expectations of management. All forward-looking
information is inherently uncertain and subject to a variety of assumptions,
risks and uncertainties, including the speculative nature of mineral
exploration and development, including the uncertainty of resource and reserve
estimates, operational and technical difficulties, fluctuating commodity
prices, competitive risks, the availability of financing and compliance with
applicable laws, including obtaining requisite permits, as described in more
detail in our recent securities filings available at www.sedar.com. Actual
events or results may differ materially from those projected in the forward
looking-statements and we caution against placing undue reliance thereon. We
assume no obligation to revise or update these forward-looking statements.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.





For further information:

For further information: Win-Eldrich Mines Limited, Perry Muller,
President, (402) 435-7206, perry@win-eldrich.com

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