Gryphon Gold Enters Lease Agreement With Pruett-Ballarat Inc.
Gryphon Gold Corporation (TSX: GGN)(OTCBB: GYPH) is pleased to announce that its wholly owned subsidiary, Nevada Eagle Resources, LLC (NER), has entered into a Lease Agreement with Pruett-Ballarat Inc., whereby Pruett-Ballarat will lease the Argus property located in Inyo County, California.
The Lease Agreement provides a sliding scale net smelter return royalty to NER of a minimum rate of 3%, if gold is less than $700 per ounce, to a maximum rate of 6%, if gold is greater than $900 per ounce for gold produced from the property. Lease payments totaling $24,000 annually are required until the property is placed into production.
The Argus property is located in the Argus Mountain Range of Inyo County, California, 12 miles west of the Briggs project operated by Atna Resources. Since 1981 the property has been explored and drilled by Queenstake Resources, Tenneco Minerals and Anaconda Minerals.
The district is situated within Middle to Late Jurassic granites and granodiorites which form the core of the Argus mountain range. Epithermal gold mineralization followed emplacement of the Middle to Late Miocene alkali granites and associated mafics. The mineralization consists of epithermal oxidized silicic stockworks, quartz-wallrock breccia vein deposits with gold and silver. The mineralized zones are controlled by steeply dipping fault zones associated with a porphyritic diorite dike which intruded the earlier igneous units.
The mineralization is oxidized to depths of 500 to +700 feet below the surface, approximately corresponding to the local water table.
Four trenches identified mineralized intervals from 35 to 55 feet wide with gold assays in the 0.10 to 0.15 ounces of gold per ton range, as determined from historic reports. Surface sampling further to the east produced narrow intervals of strongly anomalous gold.
Queenstake Resources internal report in 1988 states the property has a resource of several hundred thousand tons with an average grade in the 0.05 to 0.075 ounces of gold per ton range(1). This resource must be considered historic in nature since NER has insufficient data to evaluate Queenstake’s calculations.
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 an additional 54 highly prospective gold properties located in desirable 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
Tony Ker, CEO
Full financial statements and securities filings are available on our website: www.gryphongold.com and www.sec.gov or www.sedar.com.
The Borealis property is described in the technical report dated April 28, 2008 titled Technical Report on the Mineral Resources of the Borealis Gold Project Located in Mineral County, Nevada, U.S.A. and prepared in accordance with National Instrument 43-101 of the Canadian Securities Administrators. The technical report describes the exploration history, geology and style of gold mineralization at the Borealis property.
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 anticipated royalties payable under the option agreement, resource estimates, projections, and other plans, projections, estimates and expectations. 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.
(1) Drilling and assay data was derived from several Queenstake Resources reports and must be treated as historic documents, the reliability of which cannot be substantiated and is presented here only to give a sense of mineralization in the area. In addition, no information is available with respect to the true length or width of the intercepts.
Contacts: Gryphon Gold Corporation Tony Ker Chief Executive Officer (604) 261-2229 Email: firstname.lastname@example.org Website: www.gryphongold.com
SOURCE: Gryphon Gold Corporation