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

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Post by red911on Feb 06, 2012 10:21am

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Post# 19494213

My take...

My take FWIW...

On the negative side... Production issues have obviously led to CEO and mine GM termination/ resignation... it would seem... whether warranted or not... seems someone had to take the fall. There have obviously been issues, delays, and production shortfalls. These seemed to stem from contractor issues, crusher issues (taken offline for 2 months 'unscheduled maintenance' and replaced with something effectively useless?), and now pump problems (poor design?). In my uneducated opinion... the contractor issues may have been a delay but were rectified quickly and no big deal... BUT the crusher issue and now the pump issue would seem to be serious and very negatively affected production. Also don't like to heat legal challenges by royalty holders.

That said, on the positive side... the contractor issues and the crusher issues are completely resolved... now getting material on the pad at a rate of 4000 tons/day... or about 120K tons/month... compared to just average of 66K tons/month in Q32012 and just 74K tons/day in Jan2012. That is very good news. The pump issues have been identified and is fixable... wish they had given us an estimated time frame for this fix. So basically fix a pump system and we are on our way to better production? That is very good news IMO. Another positive is that ADR plant construction is continuing and estimated to be fully operational by mid- to late-March. It is great to hear this is still a go as if they didn't think production issues would be solved anytime soon I doubt they would be committing funds to finish ADR plant at this stage. Would it be wrong to say if everythign goes as planned from this point forward, they could be achieving much better production rates in just 1 or 2 months?... i.e. about the time ADR is fully-functional?... I really hope they continue to provide updates as production milestones are achieved. The legal challenge would seem a simple one to figure out... and if they are confident it is without merit than so should we.

If they have drill results then now would be the time to remind people to enormous potential of this property. But... no mention of this program in the update so maybe got scrapped?

JMHO.

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