Gryphon Gold Provides Update on Production
09 November 2011 - 3:00PM
Marketwired
Gryphon Gold Corporation (TSX:GGN)(OTCBB:GYPH) is pleased to
provide an update of the production activities at its wholly owned
Borealis oxide gold heap leach operation.
Gryphon Gold broke ground and began construction activities on
the Borealis oxide gold heap leach operation on June 6, 2011, which
was funded using proceeds of its $10 million public offering closed
in May, 2011. Construction of the project remained on schedule and
below budget through the first three months. Gryphon Gold began
stacking heap leach pads in early September and began the leaching
cycle on September 26, 2011, and fluid return from the heap leach
pad began in less than 24 hours. The carbon columns were activated
in early October and the first loaded carbon was shipped to Just
Refiners, Inc. in Reno, Nevada on October 13, 2011.
Gryphon Gold is unable to issue assays on the loaded carbon
until the gold and silver assays are settled with Just Refiners.
Gryphon Gold estimates that the loaded carbon gold and silver
assays from the October shipments will assay approximately 15%-20%
of gold and silver that will be loaded on carbon when the Borealis
oxide gold heap leach operation is loading at full capacity.
Final settlement assays routinely require the use of third party
independent evaluators, and the final payments to Gryphon Gold are
expected 6 to 7 weeks from the shipment date. Gryphon Gold
management projects that the ramp up of production through the end
of the year will produce 3,700 gold equivalent ounces and the total
estimated production for the 2012 calendar year will be 43,600 gold
equivalent ounces.
October production would have been near or at plan if overliner
production had met planned overliner targets. (The overliner
material is coarse screened material that forms a protective
drainage layer between the HDP 80 mil liner and the agglomerated
heap material.) The 3' overliner layer is being crushed and
screened by a contractor using Borealis waste material that has a
gold grade averaging .012 oz./ton. To date the contractor has not
maintained a rate of production to allow for full crusher
utilization by Gryphon Gold. To increase overliner production,
Gryphon has utilized the services of a second contractor to provide
additional screened material from a local quarry.
To compensate for the shortfall in overliner production, Gryphon
Gold will take immediate action as follows: 1) A second layer of
heap material will be placed over the first layer of heap material
that has been leached, and 2) The second heap will be placed with a
height of 25 feet versus the 12 feet height doubling the capacity
per square foot of liner. These two actions are anticipated to
provide approximately 6 weeks of stacking capacity at 5000 tons per
day giving the contractor the time to complete the overliner for
the remainder of the heap leach pad.
"The phased approach on a limited budget is a very aggressive
manner to bring a mine into production. To date we have performed
ahead of expectations in terms of the construction timeline. In
terms of production data, the gold recovery to fluid to date is
estimated at 35% with heaps still receiving cyanide and producing
ounces, and recovery of gold to carbon running at approximately
97.7%," said John Key, Gryphon CEO. "The overliner production has
limited our ability to place material on the heap leach pad and we
are committed to taking the actions to clear the way to full
production."
ABOUT GRYPHON GOLD:
Gryphon Gold is a Nevada-focused gold exploration company. The
Company's principal property is its Borealis gold project located
in the Walker Lane gold belt of western Nevada.
This press release contains "forward-looking statements" and
"forward-looking information" within the meaning of United States
and Canadian securities laws, which may include, but are not
limited to statements relating to the Company's plans to increase
performance at its Borealis Oxide Heap Leach Project; gold and
silver assay estimates; expectations related to shipping, delivery,
sales and revenue from gold and silver sales at the Borealis Oxide
Heap Leach Project; assumptions related to revenue and ability to
fund operations, capital requirements and exploration; assumptions
related to gold grade and recoverability, success of exploration
and drill programs and other statements relating to plans,
estimates, objectives, and timing. 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 additional
financing for the development of the Borealis Oxide Heap Leach
Project, may be required, and if so, may not be available on terms
satisfactory to the Company if at all, risks associated with the
start up of mining operations, and the risks and uncertainties
outlined under the section headings "Forward-Looking Statements"
and "Risks Factors and Uncertainties" in the Company's annual
report on Form 10-K, as filed with the SEC and Canadian securities
regulatory authorities on June 30, 2011, and in the Company's other
reports, documents, 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. The
Company does 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 the
Company's website: www.gryphongold.com and www.sec.gov or
www.sedar.com.
Contacts: Gryphon Gold Corporation John L. Key CEO and President
1-775-883-1456jkey@gryphongold.com Gryphon Gold Corporation Lisanna
M. Lewis Vice President, Treasurer, Investor Relations
1-604-261-2229llewis@gryphongold.comwww.gryphongold.com