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Gryphon Gold Corporation ("Gryphon
Gold") (TSX:GGN - News; OTCBB:GYPH - News) announced on October
21, 2010 that the Board of Directors has developed a strategy to expedite the
Borealis Heap Leach Gold Project production timeline. The focus of this
strategic direction is to finalize certain critical data pertaining to the
Freedom Flats Re-Leach to expedite the start-up of its gold mining operation.
The expedited plan is based on staging the capital requirements set out in
the September 17, 2009 Pre-Feasibility Study which forms part of the
technical report described below ("NI 43-101 Pre-Feasibility Study of
the Mineral Resources of the Borealis Gold Project Located in Mineral County,
Nevada, USA"). This expedited plan is projected to produce positive cash
flow in a timeframe of three to four months after breaking ground.
Implementation of the expedited start is contingent upon adequate financing
and regulatory approval.
"In expediting our mine development
plans the Company is exploring multiple options for financing," said Gryphon
Gold President, John L. Key. "As we grow closer to a decision, we will
release news accordingly, as required by the Toronto Stock Exchange and
Securities and Exchange Commission Rules and Regulations."
To "finalize certain critical
data" Gryphon secured three bulk samples from the Freedom Flats Re-Leach
which is scheduled to be the initial feed for Gryphon's plans under the
"Road to Production" initiative. The material was delivered to Kappes Cassidy and Associates of Reno, Nevada and column
leach tests began on November 19, 2010. Although initial results are
encouraging, reportable results will not be available until late December of
this year.
A reverse circulation drill program
began on the Freedom Flats Re-Leach on November 25, 2010. The drill program
is scheduled to run through December 7, 2010 and confirmation assays should
be available by mid to late December. The combination of this new data
combined with the data included in the April 28, 2008 Canadian NI 43-101
Technical Report on Mineral Resources of the Borealis Gold Project will
determine the Freedom Flats Re-Leach final reserve grade. This reserve grade
combined with the column test work noted above will determine the recoverable
gold for this initial feed and confirm the commercial feasibility for the
project.
The "Road to Production"
presentation, posted on Gryphon Gold's website at http://www.gryphongold.com/main/presentation,
presents a plan that outlines management's strategic objectives and the path
forward, including timelines. The above referenced critical data is scheduled
to be confirmed by late December 2010, which should allow for ground breaking
in early 2011 and subsequent start of production in the 2nd quarter of 2011
with the specific dates dependent on completion of financing and the end of
the winter hard freeze. Capital requirements to be secured for the completion
of Phase 1 are projected to be in the range of $7 - $8 million.
"The work completed to date and the
planned release of the grade and recovery data that is being used to confirm
the data used in the September 17, 2009 Canadian NI 43-101 Pre-Feasibility
Study keeps the Road to Production on schedule for a March, 2011 ground
breaking pending a successful financing. The "Road to Production"
is a robust plan to generate early and profitable gold production at our
Borealis property in a low-cost manner," stated Key.
The "Road to Production" is
based on upon an anticipated quick start to this permitted (all major permits
are in place) resource by utilizing already mined materials and generating
cash flow in a 4 month period from ground-breaking. The Phase 1 concept is to
recover material that was partially leached and recover gold at a very low
operating cost. "The reserve of partially leached material is projected
to provide leach pad feed for nearly 7 months, yielding gold recovery and
cash flow to advance the project into in-situ production," said Key. The
planned gold recovery for the first 12 months will be gold to carbon with the
gold recovery from the carbon being done on a toll basis.
Subject to successful financing and
implementation of Phase 1, two critical steps are expected to be taken in an
eight month period: 1) construction of the A.D.R. plant will commence, and 2)
in-situ ore will begin to be mined from the East Ridge pit. Completion of the
A.D.R. six months later will be the final mark to accomplishing the critical
elements of the September 17, 2009 NI 43-101 Pre-Feasibility Study allowing
for the achievement of the 50,000 ounces gold/year production benchmark.
ABOUT GRYPHON GOLD:
Gryphon Gold is a Nevada-focused gold
exploration and potentially a production company. Its principal gold
resource, the 1.4 million ounce (measured and indicated) and 1.1 million
ounce (inferred) Borealis deposits, is located in the Walker Lane gold belt
of western Nevada. The Borealis gold system is one of the largest known
volcanic-hosted high-sulphidation gold bearing
mineralized systems in Nevada.
The Borealis Property is described in a
technical report dated September 17, 2009 and titled "NI 43-101
Pre-Feasibility Study of the Mineral Resources of the Borealis Gold Project
located in Mineral County, Nevada, U.S.A.". This report is prepared in
accordance with NI 43-101 filed on www.sedar.com.
This technical report describes the exploration history, geology, and gold
resources at the Borealis Property. Disclosure in this press release of
mineral resources is based on the technical report. Details of the quality or
grade of each category of mineral resources and key assumptions, parameters,
and methods used to estimate the mineral resources are included in the
technical reports. The technical report also includes a description of
environmental and permitting matters.
The technical information in this press
release was approved by Mr. Steven Craig, VP of Exploration of Gryphon Gold
Corporation, and is a Qualified Person as defined by National Instrument
43-101 of the Canadian Securities Administrators.
Cautionary Note to U.S. Investors
concerning estimates of Measured, Indicated and Inferred Resources: This
press release and the Pre-Feasibility Study referenced in this press release
use the terms "Measured Resources", "Indicated
Resources", "Measured & Indicated Resources" and
"Inferred Resources". We advise U.S. investors that while these
terms are defined in and required by Canadian regulations, these terms are
not defined terms under the U.S. Securities and Exchange Commission
("SEC") Industry Guide 7 and are normally not permitted to be used
in reports and registration statements filed with the SEC. "Inferred
Resources" have a great amount of uncertainty as to their existence, and
great uncertainty as to their economic and legal feasibility. It cannot be
assumed that all or any part of an inferred mineral resource will ever be
upgraded to a higher category. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of a feasibility study or
pre-feasibility study, except in rare cases. The SEC normally only permits
issuers to report mineralization that does not constitute SEC Industry Guide
7 compliant "reserves" as in-place tonnage and grade without
reference to unit measures. U.S. investors are cautioned not to assume that
any part or all of mineral deposits in these categories will ever be
converted into reserves.
This press release contains
"forward-looking statements" and "forward-looking
information" within the meaning of Canadian and United States securities
laws, which may include, but is not limited to: 1) resource estimates on the
Borealis project, exploration plans and other plans, projections, estimates
and expectations; 2) statements regarding the Freedom Flats re-leach program
and confirmation of the grade of the 1.8 million tons of the stockpiles; 3)
statements with respect to the expected timeline and capital requirements; 4)
statements related to permitting status and approval requirements; 5)
projected cash flow from production, if any; 6) ability to obtain financing
on acceptable terms, and; 7) other statements related to plans, estimates,
timing and objectives. Such forward-looking statements and forward-looking
information reflect our current views with respect to future events and are
subject to certain risks, uncertainties and assumptions, including, the risk
that reserves and resource estimates may not result in commercially viable
gold production, the risk that further exploration, and if warranted,
development will not be completed as currently anticipated or at all, that
financing for the development of the Borealis Project and regulatory approval
of any financing may not be available on terms satisfactory to Gryphon and
the risks and uncertainties outlined under the section headings
"Forward-Looking Statements" and "Risks Factors" in
Gryphon's annual report on Form 10-K, as filed with the SEC on June 28, 2010,
under the section heading "Risk Factors" and in Gryphon's most
recent financial statements, reports and registration statements filed with
the SEC (available at www.sec.gov)
and with Canadian securities administrators (available at www.sedar.com).
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially
from those anticipated, believed, estimated or expected. We do not undertake
to update forward-looking statements or forward-looking information, except
as may be required by law. Full financial statements and securities filings
are available on Gryphon's website: www.gryphongold.com and www.sec.gov or
www.sedar.com.
Contact:
John L. Key
Gryphon Gold Corporation
President and CEO
+1 775.883.1456
jkey@gryphongold.com
Lisanna Lewis
Gryphon Gold Corporation
Vice President
+1 604.261.2229
+1 604.608.3262 (FAX)
llewis@gryphongold.com
www.gryphongold.com
Eric Stevenson
Price Target Media, Inc.
775-434-4451
eric@pricetargetmedia.com |
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