Gryphon Gold Corp. (TSX: T.GGN, Stock Forum) has submitted several permit applications that would allow the solution flow at the Borealis oxide heap leach project in Nevada to increase almost 50%, up to 2,600 gallons per minute.
The current solution flow permit allows throughput of approximately 1,750 gallons per minute, which is nearly double the approximately 950 gallons per minute that has been realized to date.
According to the Gryphon Gold press release, while the Water Pollution Control Permit was issued by the State of Nevada in the fourth quarter of 2012, the main overriding permit, the Modified Plan of Operations, continues to be under review by the U.S. Forest Service and the Nevada Department of Environmental Protection.
Borealis Mining Company LLC, the entity that was created as a result of the joint venture with Waterton Global Value L.P., continues to work with both agencies to complete the permitting.
Furthermore, Borealis is finalizing the assembly and electrical work on the additional crushers, which are expected to be fully operational next week. Once online, the system is expected to be able to process 12,000 tons of ore per day.
"The restart in production and the addition of our joint venture partner has allowed investments to continue in an effort to expand production capacity at the Borealis Property,” said James T. O'Neil Jr., CEO and Interim CFO.
Under the terms of the joint venture with Waterton, $17 million, or about two-thirds, outstanding under the company's senior credit facility was converted for a 60% ownership interest in Borealis.
Gryphon Gold owns a 40% interest in Borealis and the amount due under the senior credit facility has been reduced to $8 million, which is to be repaid in twenty-three monthly installments, with the first payment paid on January 31, 2013.
Additionally, as part of its operating agreement with Waterton, Gryphon Gold is responsible for the payment of four million to the joint venture to compensate Borealis for obligations incurred prior to the formation of the joint venture.
Gryphon is a U.S. based mine development company whose principal asset is the 23.5 square mile Borealis property located in the Walker Lane gold belt of Western Nevada.
On Friday, Gryphon was up 12.5% and was trading at $0.045 a share. The company had a market cap of $8.8 million, based on 194.6 million shares outstanding. The 52-week high and low was $0.19 and $0.035 respectively.