CARSON CITY, NEVADA--(Marketwire - Oct. 15, 2012) - Gryphon Gold Corporation (the "Company" or "Gryphon Gold") (TSX:GGN)(OTCQB:GYPH), a gold exploration, development, and production company focused on its Borealis Oxide Heap Leach Project in Nevada (the "Borealis Property"), provided an operational update as of September 30, 2012.
Gryphon Gold has been focused on increasing its production from a monthly average rate of approximately 1,000 gold equivalent ounces realized in the first quarter ended June 30, 2012, through expansion of its heap leach operations. The Company's goal is to have the processing capability to produce 2,000 to 2,500 gold equivalent ounces per month.
Financial flexibility to fund investments in expanding production capacity
- Financing: The Company expanded its Senior Secured Credit Facility with Waterton Global Value, L.P., increasing capacity to $20 million from $15 million. Waterton has also agreed to extend the term of the Senior Facility by seven months to November 2014.
Donald B. Tschabrun, Chief Operating Officer of Gryphon Gold, commented, "The completion of our expanded financing agreement with Waterton provided us with the financial flexibility to continue to invest in all aspects of the production cycle to increase capacity and improve operational efficiency. A number of enhancements are underway and we are working on plans for additional upgrades to leverage our current operations and facilities to increase our gold recovery rate."
Continued construction of Phase 1B
- Heap leach pad expansion: Installation of the high-density polyethylene liner is complete and the Company has commenced crushing overliner material. The new heap leach pad expansion will be ready for ore stacking this fall.
- Expanding ore handling capability: Commenced installation of a jaw crusher and second cone crusher as well as expansion of the existing conveyor system. Once online, the system will be able to process 12,000 tons of ore per day. This equipment is necessary to handle the extra capacity of the expanded heap leach pad when the Company begins to add fresh ore to the pad.
- Permit submitted: The Company has submitted an application to update the existing water flow permit, which will allow for a second set of carbon columns and higher pumping capacity, thus doubling the current solution throughput. The permit is currently under review with U.S. Forest Service and the Nevada Department of Environmental Protection. Bids have been placed for additional carbon columns which can be installed after permit approval.
- ADR facility: The Company continued to pour and ship gold from its Adsorption Desorption Recovery (the "ADR") facility on a weekly basis.
Additional efforts to improve operational efficiency
- Laboratory facility: Equipment has been ordered to develop a fully functional analytical laboratory, which will allow the Company to prepare on-site testing of ore samples within a twenty-four hour period. The facility is expected to be operational by year-end.
- Maintenance facility and wash bay: The construction of a temporary maintenance facility and permanent wash bay to clean vehicles and equipment is in progress. The wash bay is necessary to remain in compliance of the operating permit.
ABOUT GRYPHON GOLD:
Gryphon Gold produces gold from its Borealis Property, which is located in Nevada's Walker Lane Gold Belt. The Company is expanding its production capacity and advancing the development of the oxide heap leachable gold and silver historically identified that includes both pre-processed and unprocessed ore. Gryphon Gold also plans to further expand and develop the significant sulphide resource available through exploration, metallurgical design and sulphide project permitting and development. The Borealis Property contains unpatented mining claims (including claims leased to the Company's wholly owned subsidiary) of approximately 20 acres each, totaling about 15,020 acres, which has successful past production.
Gryphon Gold routinely posts news and other important information on its website: www.gryphongold.com.
Safe Harbor Statement
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of United States and Canadian securities laws, which may include, but are not limited to, statements relating to operating results; expansion of production capacity, pending permit application, development of oxide resources, construction of on-site laboratory facility and plans to advance the development of the Borealis Property. Such forward-looking statements and forward-looking information reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including risks associated with mining operations, risks associated with the oxide heap, risks associated with exploration, metallurgical design and project permitting and development and the risks and uncertainties outlined under the section headings "Forward-Looking Statements" and "Risks Factors and Uncertainties" in the Annual and Quarterly Reports, as filed with the SEC and Canadian securities administrators and in the Company's other reports, documents, and registration statements filed with the SEC (available at www.sec.gov) and with Canadian securities administrators (available at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected. The Company does not undertake to update forward-looking statements or forward-looking information, except as may be required by law. Full financial statements and securities filings are available on the Company's website: www.gryphongold.com and www.sec.gov or www.sedar.com.