Vancouver – Reserve and resource miscalculations in a recently completed feasibility study for Gryphon Gold‘s (GGN-T, GYPH-O) Borealis project in western Nevada’s Walker Lane Trend will delay planned production from the deposit.
The company plans a revision of the feasibility study and National Instrument 43-101 technical report, released in mid-August, based on the miscalculations and implications it will have on recoverable gold and silver figures.
Preliminary revised estimates for the measured and indicated resource are now expected to show about a 17% drop in tonnage to about 37.1 million tonnes. Contained gold is expected to drop by 131,000 ozs., around 10%, to about 1.2 million ozs. while contained silver is anticipated to fall more than 10 million ozs., about 56%, to around 8.45 million ozs.
Recoverable gold may be reduced by as much as 29% or 85,000 ozs. (to 212,000 from 297,000 ozs) and silver could drop 48% or 1.4 million ozs. (to 1.5 million from 2.9 million ozs.) in the planned heap leach operation.
Gryphon Gold is also postponing planned production financing. It had recently received term sheets for a US$12-million production loan and had short-listed two international mining banks to bid on its final loan facility. Production was previously expected to commence in mid-2007.
“We are initiating an independent review to determine the exact net effect of these changes. The necessary steps will be taken to ensure precision in the revised report”, said Gryphon Gold’s chairman Albert Matter in a prepared statement.
Following a trading halt for the news, shares of Gryphon Gold plummeted to close down 30%, or 42, at 98 apiece on volume of over 1.1 million.
Be the first to comment on "Gryphon Gold dealt major blow"