LOCAL EXPLORER STEEPED IN GOLD PROSPECTS IN WEST AFRICA
Sydney - Wednesday - Feb 12: (RWE Australian Business News) - GRYPHON MINERALS (GRY) is a hot speculative stock only waiting for analysts to confirm its real worth from the latest geological data.
The company is an Australian explorer committed to becoming a significant West African gold producer.
Its immediate focus is on advancing its 100pc-owned Banfora Gold Project in Burkina Faso, as well as a pipeline of new and exciting projects in West Africa.
The company recently completed a Bankable Feasibility Study (BFS) at Banfora that confirmed the viability of developing the project.
As part of the BFS, Gryphon announced a maiden Ore Reserve estimate of 1.05Moz, and an increased global Mineral Resource estimate of 4.9Moz.
The Banfora Gold Project covers 1,200 sq km and has numerous regional exploration targets with real potential for Gryphon to substantially add to the multi-million ounce gold district in the near term.
The project is in a major gold-producing district, host to such world-class deposits as Randgold's Tongon (4.2Moz), Resolute's Syama (5Moz mined and 6.5Moz in resource) and Randgold/AngloGold Ashanti's Morila (6.5Moz).
Gryphon's commitment to West Africa is underpinned not only by the geological fundamentals of the area, but also by a strong belief that exploration and development projects provide a means to create opportunities for what has historically been a deeply impoverished area.
These opportunities run a wide breadth from replacing dangerous artisanal mining activities with sustainable and safe mining practices to providing support for human rights and social/cultural development through economic empowerment in the region.
It continues to be, and remains committed, to not only building the Banfora Gold Project, but more importantly building a significant West African focused gold producing company.
Analysts have latched onto a number of important features that have just been released by the company:
It is a low-cost startup heap leach operation easily expandable with cash flow at a later date.
It has a strong NPV1 of $206 million.
Excellent IRR 39pc.
Low capital costs $79 million.
Low cash costs $665/oz.
Low all-in sustaining costs $777/oz.
Short payback 2.1 years.
Banfora Gold Project - 3.6m ounces of gold.
SHARE PRICE MOVEMENTS
---------------------
Shares of Gryphon Minerals yesterday edged up 1c to 18c. Rolling high for the year is 46.5c and low 12c. The company has 400.8 million shares on issue with a market cap of $74.16 million.
Last month, Gryphon announced the delineation of nine new robust and significant gold-in-soil anomalies from the latest results of soil geochemistry, rock chipping and mapping from the southern portion of the Banfora Gold Project.
To date soil geochemistry has played a significant role in locating all known gold mineralisation on the project and the exploration team continue to use this cost-efficient and highly effective exploration technique.
Managing director Steve Parsons said, "These results continue to demonstrate the considerable upside for further gold discovery which still remains at the Banfora Gold Project."
During 2013 Gryphon, in line with its low-cost exploration approach, conducted focused campaign-style field exploration programs at Banfora using primarily soil and stream geochemistry, rock chipping as well as detailed geological mapping.
This culminated in the identification of these nine new high-priority targets.
Combining drainage and soil geochemistry with an increasing knowledge about the geology and understanding of the controls on known gold mineralisation, the company's highly skilled exploration team identified these new targets outside the current gold deposit areas.
Soil geochemical grids have been expanded during the past 12 months as part of the company's low-cost add-value strategy and around 8000 soil samples have been collected during 2013, from which these new targets have emerged.
Soil geochemical sampling is a low-cost exploration tool and has been extremely effective in identifying all known gold deposits at the Banfora Gold Project.
BACKGROUND
----------
Gryphon Minerals is developing the world-class 4.9Moz-resource Banfora Gold Project, Burkina Faso, as well as a pipeline of new and exciting projects in West Africa.
Banfora has numerous regional exploration targets with real potential for Gryphon to uncover a multi-million ounce gold district in the near term.
The project area covers 1,200 sq km and mineralisation drilled so far is shallow with 90pc less than 150m from surface and with scope to extend this considerably deeper with further drilling.
The TIjirit gold project (100pc) is located in NW Mauritania and covers an area of 1,400 sq km. The project is prospective for gold.
In August 2013 a number of first drill results were released.
The Akjoujt copper/gold project is in Mauritania and covers an area of 750 sq km.
During 2013 geophysical surveying, soil geochemical sampling and geological mapping was undertaken.
In southern Mauritania, the Sabousstrt copper/gold project (60pc) covers an area of 1,000 sq km.
A small program of soil and lag sampling has been undertaken to geochemically prospect around known copper occurrences.
Other projects include a 12pc interest in Tawana Resources' Mofe Creek Iron Ore Project in Liberia, along with a 7pc stake in Renaissance Minerals Ltd.
Renaissance recently announced an JORC resource estimate of 1.2Moz at 2.4g/t Au at its Okvau Gold Deposit in Cambodia.
It also has a holding in the Eastern Goldfields, Australia.
courtesy of Bell Direct
===============================================
(DYOR)
Add to My Watchlist
What is My Watchlist?