VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2008) - Gryphon Gold Corporation (TSX:GGN) (OTCBB:GYPH) (the "Company") today announced that for the year ending March 31, 2008 the Company had a consolidated loss of $7,850,766 or $0.13 per share compared to a consolidated loss of $8,737,141 or $0.21 per share for the year ending March 31, 2007 on fewer shares outstanding. The decrease in spending was due to reduced exploration and management salaries.
Highlights for the year ended March 31, 2008:
- 36,485 feet were drilled on the Borealis property during fiscal 2008 (142,220 feet have been drilled during the time the Company has controlled the Borealis property);
- A CSAMT geophysical study was completed in the late fall over the most promising exploration targets in the Central and Western Pediment areas of the Borealis property. The results of this survey will be used to guide the drilling program that is expected to commence in the fall;
- Nevada Eagle Resources LLC was acquired in August 2007 and provides approximately 54 gold exploration properties in Nevada, many of which are subject to lease or joint venture providing positive cash flow. The acquisition provides our shareholders with additional exposure to possible gold discoveries in Nevada at a relatively low cash cost;
- A new CIM compliant NI 43-101 report was completed April 2008 and includes all drilling results. The total gold resource on the Borealis has increased by 704,000 ounces of gold (comprised of 209,000 ounces of measured and indicated and 495,000 ounces of inferred resources) to 1.4 million ounces of measured and indicated and 1.1 million ounces of inferred resource. This represents a 39% increase from the prior resource calculation and is due to the positive drilling results on the Borealis property in 2007 at an exploration cost of approximately $6.50 per ounce;
- A feasibility study to place the oxide heap leach mine into production is underway and expected to be completed the end of July 2008.
Exploration expenses during the year ending March 31, 2008 were $3,845,525 or 49% of total expenses during the period, compared to $4,819,692 or 53% of total expenses for the year ended March 31, 2007. The decrease in spending occurred because activity on the property during the fiscal year ended March 31, 2008 focused on exploration drilling in the pediment and Graben areas while in the prior year the focus was on continuation of permitting activities, exploration drilling program and completing a feasibility study on the Borealis property. During the year we drilled a total of 31 reverse circulation holes (totaling 36,485 feet) on the Borealis property, compared to 56 reverse circulation holes (totaling 54,530 feet) drilled during the prior year. Drilling was terminated earlier in fiscal 2008 than the preceding year due to more severe winter conditions and the desire to complete geophysical and permitting activities to better understand the geology and therefore select better drill site targets in the pediment exploration areas.
General administration, salaries, travel and consulting related expenses for the year ended March 31, 2008 totaled $3,271,506 or 42% of total expenses during the period, compared to $3,848,414 or 42% of total expenses for the prior fiscal year. The decrease was due to a decrease in management salaries from the closure of our Denver office. This decrease was partially offset by an increase in investor relations spending. Non-cash stock based compensation totaled $829,080 compared to $1,466,207 in the prior year.
Interest income earned from cash deposits was $203,970 for the year compared to $322,725 in the prior fiscal year, this being due to lower cash balances held in interest bearing bank accounts during fiscal 2007 and a declining interest rate environment. As at March 31, 2008, the company held approximately $4.2 million in cash balances.
For the three months ending March 31, 2008 the Company had a net loss of $1,387,088 or $0.02 per share compared to a net loss of $2,245,463 or $0.05 per share for the same period in the prior year. Exploration expenses for the three months ending March 31, 2008, were $431,120 or 31% of total expenses during the period, compared to $1,169,960 or 52% of total expenses for the same period in the prior year. During the quarter ended March 31, 2008, exploration costs were less than the prior years comparable because drilling was not taking place.
Gryphon Gold is a Nevada focused gold exploration company. Its principal gold resource, the 1.4 million (measured and indicated) and 1.1 million (inferred) ounce Borealis deposit, is located in the Walker Lane gold belt of western Nevada. The Borealis gold system is one of the largest known volcanic-hosted high-sulphidation gold-bearing mineralized systems in Nevada. Nevada Eagle Resources, a wholly owned subsidiary, has an additional 54 highly prospective gold properties located in desirable gold trends in Nevada. Nevada Eagle's principal properties have a cumulative 900,000 of historical ounces of gold (the historical estimates are based on internal reports prepared by prior owners prior to February 2001 and were not prepared in accordance with NI 43-101 standards and thus their reliability has not been verified). A number of Nevada Eagle's principal properties are subject to joint venture or farm in agreements in favor of third parties.
ON BEHALF OF THE BOARD OF DIRECTORS OF GRYPHON GOLD CORPORATION
Tony Ker, CEO
Full financial statements and securities filings are available on our website: www.gryphongold.com and www.sec.gov or www.sedar.com.
The Borealis property is described in the technical report dated April 28, 2008 titled Technical Report on the Mineral Resources of the Borealis Gold Project Located in Mineral County, Nevada, U.S.A. and prepared in accordance with National Instrument 43-101 of the Canadian Securities Administrators. The technical report describes the exploration history, geology and style of gold mineralization at the Borealis property.
This press release was reviewed by Dr. R. Steininger of Gryphon Gold, a Qualified Person as defined by National Instrument 43-101 of the Canadian Securities Administrators. This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to anticipated royalties payable under the option agreement, resource estimates, projections, and other plans, projections, estimates and expectations. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the SEC (available at www.sec.gov) and with Canadian securities administrators (available at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, believed, estimated or expected.
All mineral resources have been estimated in accordance with the definition standards on mineral resources and mineral reserves of the Canadian Institute of Mining, Metallurgy and Petroleum referred to in National Instrument 43-101, commonly referred to as NI 43-101. U.S. reporting requirements for disclosure of mineral properties are governed by the United States Securities and Exchange Commission (SEC) Industry Guide 7. Canadian and Guide 7 standards are substantially different. This press release uses the terms "measured," "indicated," and "inferred" "resources." We advise investors that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them. Inferred mineral resources are considered too speculative geologically to have economic considerations applied to them that enable them to be categorized as mineral reserves. We do not undertake to update forward-looking statements.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gryphon Gold Corporation
Chief Executive Officer