VANCOUVER, BRITISH COLUMBIA, Nov. 4, 2009 (Marketwire) -- Gryphon Gold Corporation (TSX:GGN)(OTCBB:GYPH) is pleased to report that Nevada Eagle Resources, a wholly owned subsidiary of Gryphon Gold, has entered into a letter of intent with option to form a Joint Venture with La Quinta Resources ("LAQ" or the "Company") on Nevada Eagle's Easter gold property.
LAQ can earn a 65% interest in the Easter property over a 5-year period by spending US$2 million in exploration expenditures and making payments to Gryphon Gold of US$190,000. First year terms include a US$30,000 payment (received) to Gryphon Gold and a work requirement of US$100,000. The Easter property has potential for both bulk mineable (open pit) and high-grade underground mineralization, as indicated by historic mining, drilling and surface sampling.
The letter of intent provides that the parties must finalize the terms of the Joint Venture by January 24, 2010.
Numerous drilling programs were conducted over the past 27 years by several operators and 109 holes outlined an area of gold mineralization with a strike length of at least 6,450 feet and widths up to 90 feet. Homestake Mining JV partner World Wide Minerals reported (June 20, 1994) a near surface historic resource of 3.35 million tons grading 0.065 ounces per ton gold (218,000 gold ounces) to a depth of 200 feet(1). The only reported production figures are from 1933 when the Easter Mine produced thirty-eight tons of ore at an average grade of 0.951 oz. Au/ton and 3.942 oz. Ag/ton.
The Easter Project is underlain by a quartz-adularia vein stockwork system within Tertiary volcanic rocks of the Caliente Caldron Complex of southeastern Nevada. Previous drilling by other companies has returned historic drill intercepts up to 0.194 oz. Au/ton over 90 feet (including 0.549 oz. Au/ton over 15 feet) and 0.084 oz. Au/ton over 110 feet (including 0.534 oz. Au/ton over 5 feet)(1). Drilling has also shown the system is open below a vertical depth of 1,740 feet, several hundred feet below an indicated boiling zone (at a depth of 500 to 800 feet) and suggests the possibility of a second bonanza system underlying the near surface mineralization.
Trace element geochemistry for As (arsenic) and Sb (antimony) show relatively low values similar to other quartz-adularia epithermal vein systems such as the K2 deposit (greater than 2,000,000 ounces gold) in Washington and the Midas deposit (greater than 3,000,000 ounces gold) in northern Nevada.
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
(1) A qualified person has not done sufficient work to classify the historical resource estimate as current mineral resources or to verify the analytical work as reliable. These do not meet current NI 43-101 standards and are presented here only as an indication of the amount of gold mineralization.
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 possible joint venture in respect of the Easter Gold l Property, interpretation of drill results, the relation between historical resource estimates on the Easter Gold Property and expected gold mineralization on the property, 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 possible joint venture in respect of the Easter Gold Property will not be completed or that future payments will be made, that historical resource estimates are not indicative of current mineralization 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. For further information contact: John Key, CEO, by phone: 775-853-8814, or email at email@example.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.