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- Gryphon Gold Corporation (TSX:GGN - News; OTCBB:GYPH - News; the
"Company") reported a net loss of $1,840,604 or $0.021 per share
from continuing operations and net income of $653,708 or $0.007 per share
from discontinued operations compared to a net loss of $1,619,130 or $0.026
per share from continuing operations and net loss of $437,955 or $0.007 per
share from discontinued operations in the same period in the prior year.
During the quarter ended September 30,
2010:
-- On August 1, 2010, the Company appointed Ms. Lisanna M. Lewis as Vice
President (formerly Controller) of the Company. Ms. Lewis will continue
to serve as Treasurer and Corporate Secretary to the Company.
-- The Sage Option Agreement was terminated by both parties on August 16,
2010. For full disclosure on the Option Agreement, please refer to our
10K filed on June 28, 2010.
-- On August 11, 2010 the Company extended the option agreement to amend
the Borealis Property mining lease until February 22, 2011 for a cash
payment of $150,000.
Three months ended September 30, 2010
compared to three months ended September 30, 2009
For the three months ended September 30,
2010, we had a net loss of $812,302 or $0.01 per share from continued
operations compared to a net loss of $1,320,285 or $0.02 per share from
continuing operations and $341,085 net loss or $0.005 per share from
discontinued operations in the same period in the prior year.
Exploration expenses during the quarter
ended September 30, 2010 were $192,789 or 24% of our total expenses compared
to $580,167 or 44% of our total expenses in the same period in the prior
year. Most of the exploration costs recognized in the current quarter were
for the annual claim maintenance fees and ongoing property lease payments.
Management salaries and consulting fees
in the quarter ended September 30, 2010 were $228,203 compared to $153,448
incurred in the quarter ended September 30, 2009. Total non-cash compensation
expense due to the recognition of costs related to stock options was $59,170
in the quarter ended September 30, 2010 compared to the prior year's fiscal
second quarter of $22,715. Management salaries and consulting fees during the
quarter increased due to the CEO returning to full time, the hiring of a VP
of Exploration, and the hiring of a General Manager of Projects. General and
administrative costs increased to $208,098 compared to $133,432 the prior
year's quarter as a result of increased investor relations activity. Legal
and audit fees for the period were $126,408, an increase from the prior
year's quarter of $120,757. Travel and accommodation costs during the quarter
ended September 30, 2010 were $35,755, compared to $23,652 expended on travel
in the prior year's comparable quarter. The increase in travel and
entertainment cost is due primarily to travel costs incurred in relation to
increased activity in connection with seeking financing.
We held certain securities for trading.
During the quarter ended September 30, 2010, we sold all remaining securities
and received $42,385 in proceeds and recorded a realized gain of $9,461. This
realized gain was partially offset by unrealized losses recorded in prior
reporting periods as we reduced the carrying value of the securities to their
quoted market value.
Six months ended September 30, 2010
compared to six months ended September 30, 2009
For the six-month period ended September
30, 2010 we incurred a net loss of $1,840,604 or $0.023 per share from
continuing operations and a net income of $635,708 or $0.01 per share from
discontinued operations compared to a net loss of $1,619,130 or $0.03 per
share from continuing operations and a net loss of $437,955 or $0.01 per
share from discontinued operations incurred during the same period in the
prior year.
Exploration expenses during the
six-month period ended September 30, 2010 were $578,429 or 31% of our net
expenses compared to $855,044 or 53% of net expenses in the same period in
the prior year. The decrease is due to very minimal engineering work compared
to the prior year. During the six months ended September 30, 2010,
approximately 21 holes and 5,580 feet of reverse circulation drilling and 3
holes and 110 feet of metallurgical core drilling was completed on the
Borealis Property compared to no drilling done in the prior year's six
months.
Management salaries and consulting fees
in the six months ended September 30, 2010 were $542,131 compared to $249,212
for the same period in the prior year. The increase is due to the CEO
returning to full time and the addition of two employees and two part time
contractors. Total non-cash compensation costs included in the six months
ended September 30, 2009 were $99,210 versus $72,079 in the prior year's
comparable period.
Legal and audit fees for the six month
period increased to $183,281 from $143,444 incurred in the prior year's
comparable period. Travel and accommodation during the six months ended
September 30, 2010 was $69,293 compared to $28,566 reported in prior year
six-month period ended September 30, 2009. The increase resulted from
increased travel surrounding the Sage Option Agreements well as financing
activities. General and administrative expenses were $347,931, versus
$188,891 in the prior year's comparable period. The increase is due to
increased investor relations activity, opening of new office in Carson City
and increased activity in the field office in Hawthorne, Nevada.
On Behalf Of The Board Of Directors
John Key, CEO
Gryphon Gold Corporation
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.
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 resource, pediment exploration plans and other plans, projections, estimates
and expectations; 2) statements regarding the proposed Phase 2 drilling
program and the potential to increase Measured and Indicated Resource
estimates and contained gold ounces at the Borealis property 2) statements
with respect to the expected terms of the option agreement and joint venture
agreement. 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 further
drilling will not convert Inferred Resources into Measured and Indicted
resources or increase contained gold ounces, the risk that further drilling
will not be completed as currently anticipated or at all, that financing for
the development of the Borealis Project 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, Treasurer, and Investor Relations
+1 604.261.2229
+1 604.608.3262 (FAX)
llewis@gryphongold.com
www.gryphongold.com |
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