Gryphon Gold Corporation
TSX : GGN
OTC Bulletin Board : GYPH

Gryphon Gold Corporation

March 10, 2009 15:27 ET

Gryphon Gold Signs Letter of Intent on Argentite Property, Nevada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 10, 2009) - Gryphon Gold Corporation (TSX:GGN)(OTCBB:GYPH) is pleased to announce its wholly owned subsidiary, Nevada Eagle Resources, has entered into a Letter of Intent to complete an Exploration Agreement with option to form a Joint Venture with Piedmont Mining Company, Inc. (OTCBB:PIED) related to Gryphon's Argentite property.

The Argentite gold property is located in the Silver Peak Mining District about 50 miles southwest of Tonopah, Nevada. It covers an epithermal gold system in a caldera-margin, within late Cenozoic volcanic rocks in the Walker Lane structural belt, which has hosted many precious metal mines in southwestern Nevada. The mineralization is associated with quartz veining, silicification, argillic alteration and anomalous arsenic, antimony, and silver. The altered and mineralized area has minimum dimensions of 600 ft. in width, 3000 ft. along strike and 300 ft. in depth. Surface samples over three main target zones commonly ranging up to 0.03 opt Au (which samples are not necessarily indicative of the grades of the mineralization).

Limited exploration by Kennecott Exploration Co. and Camnor Resources Ltd. in the late 1990s followed up mineralization in an old adit which assayed 0.221 opt Au across 20 feet. Two inclined RC holes below this adit intersected 90 ft. of 0.033 opt Au within 310 ft of 0.016 opt Au, and 150 ft of 0.034 opt Au within 255 ft. of 0.016 opt Au. Seven other drill holes in the main west to northwest trending Adit Zone returned assays up to 0.038 opt Au. About 1200 ft. along strike to the east, a chip channel within and below sinter returned 40 ft. of 0.013 opt Au. The Baseline and West zones, north and parallel to the Adit Zone are poorly exposed but have yielded surface samples up to 0.10 opt Au. These results demonstrate the potential for multiple mineralized zones on the property. The potential quantities and grades referred to above are conceptual in nature and there has not been sufficient exploration to define a mineral resource and it is uncertain if further exploration will result in any mineral resource being delineated. A Qualified Person has not done sufficient work to verify these results and while historic in nature they are presented here only to give an indication of mineralization on the property.

On signing the formal agreement, Piedmont will pay NER $8,000 and will then undertake a work commitment of $750,000 over a five year period to earn a 51% interest in the property and the project, or up to a 70% interest upon completion of a bankable feasibility study. In addition, Piedmont will make annual payments to NER of $10,000 by the first anniversary of the agreement, $15,000 on the second anniversary, $20,000 by the third anniversary and $25,000 by the fourth anniversary, all of which will be creditable against the work commitment.

Gryphon Gold is a Nevada focused, gold exploration company. Its principal gold resource, the 1.4 million (measured and indicated) 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.

This press release was reviewed by Dr. R. Steininger of Gryphon Gold, a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to the anticipated agreement with Piedmont Mining Company Inc., payments under the agreements, work commitments, grade estimates, resource estimates, and other plans, projections, estimates and expectations related to the Argentite property. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement 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.

All mineral resources have been estimated in accordance with the definition standards on mineral resources and mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in National Instrument 43-101, commonly referred to as NI 43-101. U.S. reporting requirements for disclosure of mineral properties are governed by the United States Securities and Exchange Commission (SEC) Industry Guide 7. Canadian and Guide 7 standards are substantially different. This press release uses the terms "measured", "indicated", and "inferred" "resources". We advise investors that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that enable them to be categorized as mineral reserves. We do not undertake to update forward-looking statements.

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