SOURCE: AXcess News

AXcess News

September 10, 2010 13:23 ET

AXcess News: Junior Nevada Gold Mining Company Prepares for Production

NEW YORK, NY--(Marketwire - September 10, 2010) -  Gryphon Gold Corp. (OTCBB: GYPH) (TSX: GGN) is preparing to move into production at its Borealis open pit mine in Mineral County, Nevada. Once in production, the fully-permitted gold mine would rank 6th out of 12 producing gold mines in the state, based on a 50,000 ounce per year production rate.

With gold prices well above $1200 per ounce, Gryphon's mine could operate at a substantial margin. Considering its open pit strategy, the economics are practical, according to University of Nevada, Reno economist John Dobra, who says "prices are making low-grade properties work in this economic environment."

Yet Gryphon Gold's Borealis property is reported to contain more than 2.1 million ounces of mineable gold already identified which doesn't include an additional 383,000 ounces of high-grade ore measuring 0.58 oz/t, and its entire property covers a span of 27.5 square miles with on-going drilling planned. Its measured, indicated and inferred resources are concentrated around an existing open pit mine that produced over 195,000 ounces in a two-year span between 1987 and 1989 when another company worked the property.

Recently, Gryphon cancelled a joint venture agreement with Sage Gold to develop the Borealis property which gave the Company full control. Following its annual shareholder meeting, Gryphon then extended its option to fix its net smelter royalty at 5% until February 2011, giving Gryphon Gold ample time to move forward with its plans of going into production in the near-term.

Gryphon Gold President Mr. John Key was quoted in the mid-August announcement on the royalty extension as saying, "Our plans are to continue to advance the project and evaluate potential marketing of the higher grade oxide gold ores." Key also noted that the company would be preparing to arrange financing.

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