Gryphon Gold Corp GYPHQ

Metals & Mining Gold

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

Gryphon Gold Corp

Bullboard Posts

Post by archimedes0070on Apr 29, 2011 2:44pm

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Post# 18508494

PFS, IRRs, Enchiladas, & Burritos

The 2011.04.25 PFS is very impressive. It is well worth the read.

p.35 of the PDF discusses the IRR and the project sensitivities.

The IRR is 118% and it increases 7.9% for each 1% increase in the price of gold. The PFS was released on 2011.04.26 and spot gold closed at 1506 that day. Spot gold is currently 1564.50, which is 3.88% higher. 3.88 * 7.9 = 30.65%. 118 + 30.65 = 148.65%. Yes, the PFS uses 1200 as the base price of gold, but a strong case can be made that the attractiveness of the inital project is increasing daily. Obviously, 1564.50 is higher than 1200.

Also, one could look at like so.

1564.5 - 1200 = 364.50.
364.50 / 1200 = 30.38%
30.38 * 7.9 = 240.00%
118 + 240 = 358% IRR

Mucho grande operating leverage.

And, this is just for the inital projects of the phased development. The big enchilada (sulfides) is not even included in this PFS, nevertheless this PFS for the intial phases is a mighty fine burrito.

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