Gryphon Gold Corporation
TSX : GGN
OTCBB : GYPH

Gryphon Gold Corporation

August 07, 2012 09:00 ET

Gryphon Gold Provides Operational Update

CARSON CITY, NEVADA--(Marketwire - Aug. 7, 2012) - Gryphon Gold Corporation (TSX:GGN)(OTCBB:GYPH) (the "Company" or "Gryphon Gold"), 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 July 31, 2012.

Solid Progress Made to Increase Production Capacity

Gryphon Gold has been focused on increasing its production rate from approximately 1,400 ounces gold equivalents per month realized in May 2012 to its goal of 2,000 to 2,500 ounces per month by the end of calendar year 2012. To achieve this goal, over the last month, Gryphon Gold has accomplished the following:

  • Posted bond for heap leach pad expansion: Gryphon Gold posted a new $6 million reclamation bond for expansion of the heap leach pad and the existing disturbance requiring $3.6 million cash collateral. This bond restructured the $3 million bond for the existing disturbance that required $3 million cash collateral.
    • The expansion of the heap leach pad will increase capacity by 300 percent. The pad will expand from 4 million ton capacity to 12 million ton capacity.
  • Continued processing of existing heaps and dumps: Gryphon Gold expects to begin development of identified remaining oxide resources and gradually achieve 50/50 mix of dump and heap resources with newly mined ore.
  • Expanding ore handling capability: A jaw crusher was brought on-line to increase daily tonnage of ore processed, as well as to handle larger material. This will be necessary for when the Company begins to add unprocessed ore to the heap leach pad. The Company targets processing 3 million to 4 million tons of ore per year.
  • Production from the Adsorption Desorption Recovery (the "ADR") plant: The Company is pouring and shipping gold from its ADR facility on a weekly basis. Four additional carbon columns are planned for the facility to increase production capacity.
  • Definition drilling and mine plan development: The Company continued drilling activities during July to prioritize ore development efforts. Gryphon is currently reviewing its two-year mine plan.

James T. O'Neil Jr., CEO of Gryphon Gold, commented, "Our steady gold production and cash generated from operations has enabled us to continue our investments to expand our production capacity and continue our definition drilling efforts. Increasing production and increasing production grade is critical to leveraging our fixed infrastructure costs and generating sufficient cash to invest in the development of the historic resource base of Borealis in order to extend the life of our mine."

First Quarter Conference Call

The Company will report its first quarter fiscal year 2013 financial results after markets close on August 14, 2012. A conference call and webcast will be held at 11:30 a.m. Eastern Time on Wednesday, August 15, 2012, in which management will review its results and progress in expanding production at the Borealis Project, followed by a question and answer session.

The conference call can be accessed by dialling (201) 689-8560. The webcast can be found on the Company's website at www.gryphongold.com.

A telephonic replay will be available from 2:30 p.m. Eastern Time the day of the teleconference until Wednesday, August 22, 2012. To listen to a replay of the call, dial (858) 384-5517 and enter replay pin number 396771. Alternatively, the archive of the webcast will be available on the Company's website at www.gryphongold.com. A transcript will also be posted to the Company's website, once available.

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 at 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, development of oxide resources 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 Company's annual report on Form 10-K for the year ended March 31, 2011, and interim report on Form 10Q for the period ended December 31, 2011, 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.

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