Sells Blue Mountain Project to Nevada Geothermal

GGN-t and SGX-v SIGN OPTION FOR JV FOR BOREALIS GOLD PROJECT NEVADA

May 3rd, 2010: Gryphon Gold starts Borealis drilling...

Reply New Message

Prev Message Back To Forum Threaded View Next Message

Clavis

Rank: President [?]

Points: 26378 [?]

Votes: 242 Score: 3.6 [?]

Your Vote:

Please Log In to Vote

Did you know? You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)

Sells Blue Mountain Project to Nevada Geothermal

posted on Apr 08, 2009 02:11PM

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

The mineralized zone is believed to lie above high-grade feeder structures that have been intersected in several drill holes. All of the above drill hole highlights are within the core 31 claims that Gryphon retains a 2% NSR. A Qualified Person has not done sufficient work to verify these results and reliability cannot be substantiated, 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 (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.

Reply New Message

Prev Message Back To Forum Threaded View Next Message

Please to post a reply