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Gryphon Gold Corp GYPHQ

Gryphon Gold Corporation is a mine development company. The Company's principal asset is Borealis property. The Borealis Property is 27.5 square miles located in the Walker Lane gold belt of western Nevada. The Company's land position covers approximately 17,600 acres for the Borealis property and over 60 Nevada exploration properties, which cover approximately 70 square miles in the state's gold trends. The Borealis property has approximately 1.4 million ounces of measured and indicated gold resources, and approximately 1.1 million ounces of inferred gold resources have been accredited to the one square mile Central Borealis zone. Its Borealis property has over five other prospective zones that are being explored, which have the potential to host significant gold resources. The Company continued drilling on the Borealis property in the Graben resource, and in the central and western pediment areas.


GREY:GYPHQ - Post by User

Bullboard Posts
Post by archimedes0070on Mar 19, 2011 2:00pm
129 Views
Post# 18310793

$5,000 Au

$5,000 Ausittight,

Welcome to the "machine" (board). (Just a little music humour)

The NI 43-101 indicated the potential for 5m+ Au oz, given the similar geology of the Borealis property to Yanacocha, Peru (the largest gold producer in South America), and given that Borealis is in elephant country with other mines in the Nevada area in the 5-10m+ range. Currently GGN has ~2.5m oz Au, but hopefully with an attractive updated PFS and successful PO John Key and the team will be able to implement the phased plan, which will eventually lead to more drilling and hopefully an expanded resource from 2.5m to 5m+.

https://www.infomine.com/minesite/minesite.asp?site=yanacocha

At $5,000 Au that would give an in situ value of $5,000 / oz Au * 5,000,000 oz Au =$25b.

The current MC is ~14m.

If all of the above plans are successfully implemented it would not be a stretch of logic to surmise that GGN could have a MC > $1b. Yes there will be dilution from a PO and from any other future financings, but overall the picture looks very appealing. And, yes, there are many caveats, assumptions, risks, etc., as is customary and expected with any other advanced stage exploration and pre-development mining company. However, at the current substantially discounted valuation and after all of the trials and tribulations GGN and its shareholders have endured, one might entertain the notion that every known risk under then sun may have already been discounted into the stock price, and therefore any promising company developments may ratchet the price substantially higher.

Caveat emptor
Bullboard Posts