Positive Pre-Feasibility Study Filed for Borealis Oxide Project in
Date: August 28,2009
Gryphon Gold Corporation (GGN:TSX/GYPH:OTC.BB) (the Company) is pleased to announce that a copy of the full Pre-Feasibility Study for the Borealis Oxide Project has been filed on the SEDAR website, www.sedar.com.
The NI 43-101 compliant study, completed by Telesto Nevada Inc in mid-July of 2009, examined the proposed, low-cost open-pit mine at the Company’s wholly owned project located in the Walker Lane Belt of western
Average annual production over 50,000 oz gold-equivalent Low initial construction cost of US$14.8 million using a 10% contingency Average life-of-mine cash operating cost of US$476 per oz gold After-tax NPV of US$12.5 million, IRR of 27% and payback of 2.25 years based on a US$800 per ounce price of gold
The Pre-Feasibility Report for the Borealis Oxide Project shows a significant increase in the measured and indicated resource categories from previous NI 43-101 resource estimates1. The revised measured and indicated mineable resources of 377,356 oz of gold1 gives the Borealis Project an estimated five-year mine life with average annual production of more than 50,000 gold-equivalent ounces, including recovered silver ounces.
No inferred resources were included in the study. The inferred oxide resources (totaling 350,706 oz of gold)1 represent potential to extend the mine life beyond the five-year plan examined in the Pre-Feasibility Study, if such inferred resources are confirmed as reserves as a result of additional exploration work. Ongoing exploration also provides opportunities for further resource expansion as the Borealis Property covers approximately 27.5 square miles of favorable
The company’s address is Suite 711-675 West Hastings Street, Vancouver, BC V6B 1N2, 888.261.2229, fax: 604.608.3262.