Sells Blue Mountain Project to Nevada Geothermal
posted on
Apr 08, 2009 02:11PM
May 3rd, 2010: Gryphon Gold starts Borealis drilling...
April 8, 2009 | |
Gryphon Gold Sells Blue Mountain Project to Nevada Geothermal | |
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 8, 2009) - Gryphon Gold Corporation (TSX:GGN)(OTCBB:GYPH) is pleased to announce its wholly owned subsidiary, Nevada Eagle Resources (NER), has sold its Blue Mountain project to Nevada Geothermal Power Company (TSX VENTURE:NGP). NER staked this property in November 2008. On April 1, 2009, Nevada Geothermal Power Company paid NER $50,000 for 31 claims subject to future production royalties from the property. Nevada Geothermal Power Company is required to pay a 2% net smelter return royalty (NSR) from the core claims and a 0.5% NSR on any future precious metal production that is derived from mineral rights located within the Area of Interest. The Area of Interest consists of 17 square miles. The Blue Mountain Project encompasses an undeveloped, high level, epithermal gold system that lies approximately 20 miles south of the high grade Sleeper deposit, mined by Amax Gold. Historic vertical drilling at Blue Mountain has partially defined two low-angle, tabular mineralized horizons whose thickness vary from 25 to 60 feet. These blanket-like zones are open to the north and to the west, and are strongly brecciated and fractured. High-angle "feeder" structures were intersected within and beneath the main gold zone in several of the first angle holes drilled on the property. These steeply dipping structures contain moderate to high-grade gold mineralization. Historic exploration work has not adequately tested the potential of these structures or the potential for a covered "Sleeper-type" target. Drilling by a number of mining and exploration firms, including four major companies, over the past twenty years has confirmed the presence of a precious metal bearing epithermal system in 87 drill holes in the central portion of the area. The following table sets out certain historic drill hole intercepts: ------------------------------------------------------------- Historic Drill Hole Intercept Highlights(1) ------------------------------------------------------------- Drill Hole From To Interval (Ft.) Au (oz/ton) ------------------------------------------------------------- BL-07 245 295 50 0.027 ------------------------------------------------------------- and 380 425 45 0.028 ------------------------------------------------------------- BM-43 250 265 15 0.043 ------------------------------------------------------------- BM-44 200 255 55 0.055 ------------------------------------------------------------- BM-68 305 390 85 0.091 ------------------------------------------------------------- including 310 325 15 0.422 ------------------------------------------------------------- BM-75 295 355 60 0.041 ------------------------------------------------------------- including 345 355 10 0.107 ------------------------------------------------------------- BM-77 245 360 115 0.044 ------------------------------------------------------------- including 335 345 10 0.183 ------------------------------------------------------------- (1) The length of the intercepts may not represent true thickness Gryphon Gold is a Nevada focused, gold exploration company. Its principal gold resource, the 1.4 million (measured (0.4 million) and indicated (1.0 million)) 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 Eagle's principal properties are subject to joint venture or farm in agreements in favor of third parties. ON BEHALF OF THE BOARD OF DIRECTORS OF GRYPHON GOLD CORPORATION John L. Key, CEO Full financial statements and securities filings are available on our website: www.gryphongold.com and www.sec.gov or www.sedar.com. The new technical report has been filed with Canadian Securities regulatory authorities on SEDAR and has been made available on the Company's website at www.gryphongold.com. |