VANCOUVER, BRITISH COLUMBIA, Oct. 29, 2009 (Marketwire) -- Gryphon Gold Corporation (TSX:GGN)(OTCBB:GYPH) is pleased to report that its wholly owned subsidiary Nevada Eagle Resources (NER) has entered into an option agreement to sell its 100% owned Regent Hill Property to New Era Precious Metals for $2,500,000.
Regent Hill is located 1.5 miles northwest of Kennecott Minerals' Denton-Rawhide Mine. The property consists of 110 contiguous unpatented lode claims covering approximately 2,272 acres in Mineral County, Nevada.
New Era Precious Metals (Nevada) Inc. (NEPM) has the right to purchase the Regent Hill Property on the following terms:
- Pay $500,000 cash by November 19, 2009
- Pay $1,000,000 cash by February 1, 2010
- The $1,000,000 balance is to be paid in quarterly payments of $250,000, starting May 1, 2010, with the last payment due February 1, 2011.
- NEPM will pay a Royalty to NER of 4% gross of the difference of the price of gold above a base price of $935.00 per mined ounce and the selling price of gold mined at the time of sale, up to a maximum of 100,000 ounces of gold.
- NEPM will have a one-time option to pay $2,400,000 cash by February 1, 2010 (less amounts previously paid), as payment in full.
Completion of the sale is subject to conditions.
Since 1984, Kennecott, Newmont Gold and Keegan Resources have conducted exploration programs designed to develop open-pit bulk-mineable resources at the Regent Hill Property. These programs included more than 564 holes totaling at least 265,600 feet of reverse circulation drilling within a limited area. Kennecott used data from these shallow, vertical drill holes to define a low-grade near surface gold deposit. The companies also encountered significant high-grade gold intercepts.
Gryphon Gold is a Nevada-focused gold exploration and development company. Its principal gold resource, the 1.4 million ounce (377,356 ounces of proven and probable reserves and 1,022,644 ounces of measured and indicated) and 1.1 million ounce (inferred) Borealis deposits, 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 approximately 60 highly prospective gold properties located in desirable gold trends in Nevada. Nevada Eagle's Golden Arrow property (leased to Nevada Sunrise Gold Corp.) contains a NI 43-101 compliant resource of 296,500 ounces of gold (measured and indicated) and 50,400 inferred ounces of gold (as described in a technical report dated May 1, 2009 available on Sedar.com under the Nevada Sunrise Gold Corp. profile). Nevada Eagle's other principal properties have a cumulative 1,365,000 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 CIM 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
John L. Key, CEO
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of Canadian and United States securities laws, which may include, but is not limited to, statements with respect to projections and expectations related to the anticipated sale of the Regent Hill Property, interpretation of drill results, the results and projections contained in the pre-feasibility study regarding the Borealis resource and other plans, projections, estimates and expectations. Such forward-looking statements and forward-looking information reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risk that the sale of the Regent Hill Property will not be completed or that contingent payments (including royalties) will be made and the risks and uncertainties outlined under the section headings "Forward-Looking Statements" and "Risks Factors" in our annual report on Form 10-K, as filed with the SEC on June 26, 2009, under the section heading "Risk Factors" in our most recent quarterly report on Form 10-Q, as filed with the SEC on August 14, 2009, and in our most recent financial statements, reports and registration statements filed with the SEC (available at www.sec.gov) and with Canadian securities administrators (available at www.sedar.com). There is no certainty that the results of the pre-feasibility study will ever be realized. 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. We do not undertake to update forward-looking statements or forward-looking information, except as may be required by law.
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 (the "technical reports") dated September 21, 2009 titled Pre Feasibility Study on the Mineral Resources of the Borealis Gold Project Located in Mineral County, Nevada, U.S.A. prepared in accordance with National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101"). The technical report describe the exploration history, geology and style of gold mineralization at the Borealis property. Disclosure in this press release of mineral resources is based on the technical report. Details of the quality or grade of each category of mineral resources and key assumptions, parameters and methods used to estimate the mineral resources is included in the technical reports. The reports also include a description of environmental and permitting matters.
The information in this press release as it relates to the mineral resources of the Borealis property was reviewed by Dr. R. Steininger of Reno, NV, a Qualified Person as defined by NI 43-101 of the Canadian Securities Administrators. Dr. Steininger is a consulting geologist retained by Gryphon Gold and is the principal author of the technical report and is considered independent of Gryphon Gold for the purposes of NI 43-101.
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 and the information contained in this press release is not comparable to similar information disclosed by U.S. companies. 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. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally minable.