DENVER, COLORADO and VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 19, 2006) - Gryphon Gold Corporation (TSX:GGN)(OTCBB:GYPH) announces that based on the success to date of the initial Graben exploration program Gryphon is initiating three new components to the Company's continuing exploration programs:
1) Geophysical Survey Program: The geophysical survey scheduled for completion during September 2006 is designed for targeting sites for the two new drilling programs. The program will consist of three gradient array induced polarization (IP) and resistivity surveys to identify chargeability and resistivity highs that are coincident with known aeromagnetic lows indicating areas of likely mineralization.
2) Graben Deposit Extension Drilling Program: This 20-hole drilling program will consist of a series of broad step-out holes along the northern extension of the Graben trend and is scheduled to commence in September 2006. Guided by the new geophysical surveys and reinterpreted existing geophysical data, this program is designed to delineate the northern and western limits of the Graben deposit's gold mineralization. The budget for this program is estimated to be $1.4 million.
The Graben zone, one of seven targets identified to date, offers the potential of a substantial gold resource located near existing infrastructure and amenable to open pit, bulk-tonnage mining, if proven economic.
3) District Exploration Program: Simultaneous with the delineation drilling of the Graben deposit Gryphon will commence a $550,000 reconnaissance and drilling program. This program is designed to determine which of the six other gold mineralized targets identified to date will be the focus of the next exploration program.
Current Graben Program in Review
With the inclusion of drill-hole G-14 (78m of 1.2gpt), the gold and silver mineralization in the northernmost fence of drill holes in the Graben deposit (G-03, 04, 06, 07, 09, 11, 13 and 14) is now approximately 450 meters wide and an average of 75+ meters thick (cross-section and additional drill-hole data available at http://www.gryphongold.com/s/BorealisExploration.asp). The zone remains open to the east and west on section and to the north along trend.
The Graben has continuous gold mineralization extending over a length of 700 meters with the width increasing from 200 to 450 meters as it trends north and a true thickness ranging from 50 to 150 meters. A combination of geologic projection, geophysical data review and interpretation of drill-hole results indicates a possible 700-1,000 meters northern extension to the Graben system. The average gold grade of the Graben deposit is estimated to be between 2 and 2.5 grams per ton (gpt) yielding a potential multimillion ounce gold resource.
The Borealis exploration programs are under the direction of Mr. Steven Craig, BSc (geology), MS (economic geology), Gryphon's Vice-President of exploration. The drilling and assaying are conducted under the supervision of Mr. David Harvey, with input from Drs. Roger Steininger and Donald Ranta--all three are qualified persons as defined by National Instrument 43-101 of the Canadian Securities Administrators. The company has one drill rig committed and operating, and is seeking a second rig to start in September to accelerate these programs.
The Company expects to complete the feasibility study on the oxide/heap leachable portion of its Borealis project by August of 2006 and has begun preliminary discussions with several financial institutions 2 of 2 regarding debt/equity financing of the heap leach mine. The cash flow from this mine is expected to fund the multi-year exploration programs required to fully assess this multi-target asset.
Gryphon Gold is a Nevada corporation in the business of acquiring and developing gold properties in North America. Gryphon Gold's principal asset is the 27.5 sq mile (1.25 million ounce M&I) Borealis property located in the Walker Lane gold belt of Western Nevada. At present the company has 41 million shares outstanding with a net cash balance of US$7.5 million at June 30th, 2006.
Full financial statements and securities filings are available on our website: www.gryphongold.com and www.sec.gov or www.sedar.com.
Eklund Drilling Company of Elko, Nevada, provided reverse circulation drilling services. Drill bit size equaled 5 1/4 inches in diameter and samples were collected at 5-foot intervals (1.5 meters). All drill samples were bagged and sealed at the drill site by drill contractor employees, placed in bins, and delivered to a secure storage. Two assaying companies performed the fire assaying services reported in this press release. Both American Assay Laboratories (AAL) and Inspectorate Laboratories in Sparks, Nevada picked up the sample bins from secure storage. Both companies are ISO/IEC 17025 certified and have successfully completed Canadian proficiency testing (CCRMP). Drill cuttings were dried, crushed to -10 mesh, rotary split to 1,000 grams, pulverized to -150 mesh, split to 350 gram pulps, fire assayed for gold and silver using 1-assay ton fire assay with gravimetric finish. Strict QA/QC protocol was followed, including the insertion of standards and blanks on a regular basis in the assaying process.
This press release contains "forward-looking information" which may include, but is not limited to, statements with respect to our planned exploration program. 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 under the section titles "Risk Factors and Uncertainties" in our prospectus (available at www.sedar.com) and registration statement filed with the SEC (available at www.sec.gov). 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Gryphon Gold Corporation
Executive Vice President