Gryphon Gold Corporation (TSX: GGN)(OTCBB: GYPH) filed on SEDAR and its website the recently completed CIM compliant NI 43-101 technical report in respect of the gold resource inventory for the Central Borealis deposit (previously announced April 30, 2008).
The total Central Borealis gold resource inventory is now calculated to be 1,422,500 ounces of measured and indicated gold ("M&I") and 1,104,500 ounces of inferred ("Infd") gold. This is an increase of 704,000 ounces of gold from the previous study (39% increase comprised of 209,000 ounces of M&I and 495,000 ounces of Infd resources) at an exploration cost of approximately $6.50/ounce. It is likely that much of the inferred mineralization can be upgraded to measured and indicated with a modest drill program.
These results confirm that the geological model developed by Gryphon Gold's geologists (Steve Craig and Roger Steininger) is proving successful. The model effectively identified the areas of mineralization that resulted in this significant increase; as well the model has identified areas in the Central Borealis where resources are open to possible expansion and where additional higher-grade material is likely to be delineated.
A drill program is being planned to follow up on these very encouraging results in the Central Borealis, and to apply the successful geological model to the very thick (up to 1,450 ft) zones of anomalous gold and alteration that were discovered in the Western pediments during the 2007 exploration program.
To view the table accompanying this press release please click on the following link: http://media3.marketwire.com/docs/GGN0603.pdf .
It is anticipated that these resources may support two distinct mining opportunities: an open-pit heap-leach mine plan for the oxide portion of the Central Borealis gold deposit as well as an open-pit mining plan for the higher grade unoxidized zones beneath and adjacent to the oxides:
- The in situ oxide portion of the gold resources, with approximately 170,000 of M&I and 177,000 of Infd ounces of gold at an average grade of 0.8 g/t(1) (0.022 ozs/ton) may support a 40,000+ ounce/year heap leach mine. There is also a partly oxidized gold resource with approximately 74,000 of M&I and 73,000 of Infd ounces of gold at the same average grade that may further support the heap leach mine pending additional metallurgical testing to determine the degree of recoverability. In addition there are some 20 million tons of unspent heaps and low grade stockpiles whose gold content remains to be assessed.
- The unoxidized portion of the gold resources, with approximately 1,084,000 M&I and 715,800 Infd ounces of gold at an average grade of 1.5 g/t (0.044 ozs/ton) may support a 65,000+ ounce per year open-pit mine.
A technical report assessing the economics of the heap leach mine for the oxide portion of the Central Borealis resource is being prepared by Telesto Solutions Inc., a Nevada based independent engineering services firm under the supervision of John Key, Gryphon Gold's COO. Mr. Key joined Gryphon Gold in February, 2008 specifically with the intent to develop the mining potential of Gryphon Gold's mineral resources. As a mining engineer he worked for the Teck Cominco organization from 1983 to 2004 were he was directly responsible for running, in succession, the Magmont, Polaris, and Red Dog mines and served as General Manager, Projects.
The technical report is anticipated to be ready for release in July 2008. As well, a preliminary internal report assessing the potential for an open-pit mine plan for the higher grade unoxidized zones is in progress. The development of mining operations for any of the resources will require completion of positive feasibility studies and a decision to proceed would be subject to regulatory approvals and financing.
Gryphon Gold is a Nevada focused gold exploration company. Its principal gold resource, the 1.4 million measured and indicated and 1.1 million inferred ounce Borealis deposit, 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. Nevada Eagle Resources, a wholly owned subsidiary, has over 50 highly prospective gold properties located in desirable gold trends in Nevada. Nevada Eagle's principal properties have a cumulative 900,000 of historical ounces of gold (the historical estimates are based on internal reports prepared by prior owners prior to February 2001 and were not prepared in accordance with CIM NI 43-101 standards and thus their reliability has not been verified). A number of Nevada Eagle's principal properties are subject to joint venture or farm in agreements in favor of third parties.
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