In a New York minuteNEW YORK, NY, Oct 17, 2011 (MARKETWIRE via COMTEX News Network) -- GryphonGold Corp. (OTCBB: GYPH) became the first junior gold
producer in Nevada in2011 after having shipped carbon columns loaded
with silver and gold from itsBorealis Mine in Mineral County.
Gryphon's President John Key called theshipment a "milestone event"
for the company.
According to sources in the company, Gryphon Gold will be shipping
carboncolumns bi-weekly from here on out and could report gold
production figuressometime in the second half of November.
The company's shares set a new 52-week high in early morning trading
onthe Over-the-Counter Bulletin Board market Monday, reaching a high
of
.32.
GYPH completed a secondary offering in May, having raised $10million
through an underwriting led by Roth Capital in the U.S. withAcumen
Capital of Alberta managing the Canadian sale of common stock.In
all, the two underwriters brought in enough buying to take down$1
million of the underwriters over allotment. Proceeds from the
offeringallowed Gryphon Gold to build out its leach pad operation
and with the helpof an additional $3 million in debt, also placed by
the underwriters, thecompany had the capital to build the ADR plant.
The plant will permit theprocessing of carbon into bullion on-site,
saving as much as 5% in costs. Thecompany expects the plant to be in
operation sometime during the beginning ofthe new year.
Gryphon Gold is forecasting an annual production rate of
approximately48,000 ounces of gold once in full production at a cost
basis near $400 perounce this year. Based on current prices, that
would put the company'spre-tax earnings somewhere in the $60 million
range. For shareholders,Monday's announcement on shipping carbon
columns may be a 'milestone event,'as Key stated, though production
figures to come later this fall couldsubstantiate Gryphon Gold's
forecast.
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