Last Update... Last real operations update here was 2 months ago... Assume they are still 'on plan' as we have yet to hear otherwise... Re-reading does reinforce potential during quiet periods... hopefully once this heap leach operation (being expanded from 4M to 12M ton capacity as we speak) we will hear more.
red911
Gryphon posts $6-million bond to expand heap-leach pad
2012-08-07 10:38 NT - News Release
Mr. James O'Neil reports
GRYPHON GOLD PROVIDES OPERATIONAL UPDATE
Gryphon Gold Corp. has provided an operational update as of July 31, 2012.
Solid progress made to increase production capacity
Gryphon Gold has been focused on increasing its production rate from approximately 1,400 ounces of gold equivalent per month, realized in May, 2012, to its goal of 2,000 to 2,500 ounces per month by the end of calendar year 2012. To achieve this goal, over the last month, Gryphon Gold has accomplished the following:
- The company has posted bond for heap-leach pad expansion. Gryphon Gold posted a new $6-million reclamation bond for expansion of the heap-leach pad and the existing disturbance requiring $3.6-million cash collateral. This bond restructured the $3-million bond for the existing disturbance that required $3-million cash collateral.
- The expansion of the heap-leach pad will increase capacity by 300 per cent. The pad will expand from a four-million-ton capacity to a 12-million-ton capacity.
- The company has continued processing existing heaps and dumps. It expects to begin development of identified remaining oxide resources and gradually achieve a 50-50 mix of dump and heap resources with newly mined ore.
- Gryphon Gold has expanded ore-handling capability. A jaw crusher was brought on line to increase daily tonnage of ore processed, as well as to handle larger material. This will be necessary for when the company begins to add unprocessed ore to the heap-leach pad. The company targets processing three million to four million tons of ore per year.
- The company has achieved production from the adsorption-desorption-recovery (ADR) plant. It is pouring and shipping gold from its ADR facility on a weekly basis. Four additional carbon columns are planned for the facility to increase production capacity.
- The company is working on definition drilling and mine plan development. It continued drilling activities during July to prioritize ore development efforts. Gryphon Gold is currently reviewing its two-year mine plan.
James T. O'Neil Jr., chief executive officer of Gryphon Gold, commented: "Our steady gold production and cash generated from operations has enabled us to continue our investments to expand our production capacity and continue our definition drilling efforts. Increasing production and increasing production grade is critical to leveraging our fixed infrastructure costs and generating sufficient cash to invest in the development of the historic resource base of Borealis in order to extend the life of our mine."
First quarter conference call
The company will report its first quarter fiscal year 2013 financial results after markets close on Aug. 14, 2012. A conference call and webcast will be held at 11:30 a.m. ET on Wednesday, Aug. 15, 2012, in which management will review its results and progress in expanding production at the Borealis project, followed by a question-and-answer session.
The conference call can be accessed by dialling 201-689-8560. The webcast can be found on the company's website.
A telephonic replay will be available from 2:30 p.m. ET the day of the teleconference until Wednesday, Aug. 22, 2012. To listen to a replay of the call, dial 858-384-5517 and enter replay No. 396771. Alternatively, the archive of the webcast will be available on the company's website. A transcript will also be posted to the company's website, once available.
We seek Safe Harbor.