GGN-t and SGX-v SIGN OPTION FOR JV FOR BOREALIS GOLD PROJECT NEVADA
May 3rd, 2010: Gryphon Gold starts Borealis drilling...
Message: Cash Conservation
| January 6, 2009 |
| Gryphon Gold Employs Cash Conservation While Continuing Plans for Mine Construction |
| RENO, NEVADA--(Marketwire - Jan. 6, 2009) - Gryphon Gold Corporation (TSX:GGN)(OTCBB:GYPH) (the "Company") announced that the Company has taken steps to significantly reduce costs and future commitments. The reductions were made to ensure business presence is maintained while planning continues to put the Borealis property in Nevada's Walker Lane gold belt into production. The Company plans to wait for capital market conditions to improve before making a business decision to raise equity necessary for the construction phase of the operation. Steps taken to reduce costs include: - Major reduction in office facility expense -- Gryphon Gold has moved its Vancouver office location for a 90% savings, reduced Reno office space by 50% and closed the Hawthorne, Nevada office. - Staff reductions -- Retained staff includes only the CEO, Controller and VP of Business Development, all of whom are being compensated at a significantly reduced rate. - Renegotiated agreement terms -- Renegotiated agreements that are required for the success and protection of the company to provide needed services at a reduced rate -- Renegotiated payouts on terminated contracts allowing for future considerations -- Amended the 5% US$ 5mm note payable for the purchase of Nevada Eagle Resources with Jerry and Fabiola Baughman to reduce semi annual cash interest payments by one half of their scheduled amounts. The unpaid interest will be added to the principal balance of the note, which is due March 30, 2010. - Eliminated all non-essentials from the budget "I believe that Gryphon Gold Corporation has taken the steps to provide a true measure of security for the near and mid-term with additional steps to be taken for the longer term in raising capital by continually analyzing the value of assets held in Nevada Eagle Resources and working to market certain properties," says Gryphon Gold CEO John Key. The Nevada Eagle portfolio consists of 56 properties primarily in Nevada. Over 25 of the properties are either leased or joint ventured, providing cash flow to Gryphon Gold in excess of $500,000 per year. "We believe Gryphon Gold can best optimize shareholder value by ensuring the retention of the Borealis property and maintaining the operating permits to go forward," Key says. The Borealis project is fully permitted for an oxide heap leach operation. In September, 2008, Gryphon Gold released a Preliminary Assessment produced by Telesto Nevada based upon mining and processing of gold resources consisting of 246,000 measured and indicated ounces and 110,000 inferred ounces contained in 11.7 million tons grading 0.04 opt, with anticipated recovery of 232,000 ounces of gold in bullion. The five-year plan indicated that the project had an unlevered internal rate of return at 26 per cent assuming a US$775 per ounce gold price. The preliminary assessment indicated that, for every 1 per cent change in the price of gold, the projected internal rate of return changes by 1.7 per cent. Based upon engineering, construction and mine development schedules as published in the Preliminary Assessment, the project would be producing gold bullion in the seventh month after board approval. The Borealis property consists of over 23 square miles of highly altered rock containing multiple high sulphidation gold bearing systems. The property has 1.4 million ounces of gold resources (measured and indicated) and 1.1 million ounces of gold (inferred) NI 43-101 compliant gold ounces (MI&I). Historically, the property has produced over 600,000 ounces of gold. The mineral resources noted above are not mineral reserves as they do not have demonstrated economic viability in light of the fact that a production decision has not yet been made. Long-range plans are to provide cash flow generated from the oxide mining operation to fund a drilling program to define high grade zones within three additional large high-sulphidation systems discovered under the pediments in 2007. As well, plans call for completion of technical work to confirm the 100,000+ ounces of gold per year envisioned from mining the sulphide resource. Full financial statements and securities filings are available on our website: www.gryphongold.com and www.sec.gov or www.sedar.com. |
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