Letter of Intent on Argentite Property

VANCOUVER - Gryphon Gold Corporation reported that its wholly owned subsidiary, Nevada Eagle Resources, has entered into a Letter of Intent to complete an Exploration Agreement with option to form a Joint Venture with Piedmont Mining Company, Inc. related to GryphonÕs Argentite property.
The Argentite gold property is located in the Silver Peak Mining District about 50 miles southwest of Tonopah, Nevada. It covers an epithermal gold system in a caldera-margin, within late Cenozoic volcanic rocks in the Walker Lane structural belt, which has hosted many precious metal mines in southwestern Nevada. The mineralization is associated with quartz veining, silicification, argillic alteration and anomalous arsenic, antimony, and silver. The altered and mineralized area has minimum dimensions of 600 ft. in width, 3000 ft. along strike and 300 ft. in depth. Surface samples over three main target zones commonly ranging up to 0.03 opt Au (which samples are not necessarily indicative of the grades of the mineralization).
Limited exploration by Kennecott Exploration Co. and Camnor Resources Ltd. in the late 1990s followed up mineralization in an old, adit which assayed 0.221 opt Au across 20 feet. Two inclined RC holes below this adit intersected 90 ft. of 0.033 opt Au within 310 ft of 0.016 opt Au, and 150 ft of 0.034 opt Au within 255 ft. of 0.016 opt Au. Seven other drill holes in the main west to northwest trending Adit Zone returned assays up to 0.038 opt Au. About 1200 ft. along strike to the east, a chip channel within and below sinter returned 40 ft. of 0.013 opt Au. The Baseline and West zones, north and parallel to the Adit Zone are poorly exposed but have yielded surface samples up to 0.10 opt Au.
These results demonstrate the potential for multiple mineralized zones on the property. The potential quantities and grades referred to above are conceptual in nature and there has not been sufficient exploration to define a mineral resource and it is uncertain if further exploration will result in any mineral resource being delineated. A Qualified Person has not done sufficient work to verify these results and while historic in nature they are presented here only to give an indication of mineralization on the property.
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 approximately 54 highly prospective gold properties located in 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 EagleÕs principal properties are subject to joint venture or farm in agreements in favor of third parties.
The companies address is Suite 711-675 West Hastings Street, Vancouver, BC V6B 1N2, 888.261.2229, fax: 604.608.3262.