Gryphon Minerals is cashed up, progressing Banfora Gold project...

Gryphon Minerals is cashed up, progressing Banfora Gold project in Burkina Faso
Thursday, June 20, 2013 by Proactive Investors


Gryphon Minerals is cashed up, progressing Banfora Gold project in Burkina Faso

Africa focused Gryphon Minerals (ASX:GRY) will look to preserve a cash position of $54 million with a significant reduction in overheads across its business and a stringent cost review and ongoing cost management process.

A Bankable Feasibility Study delivered in late January 2013 for the 4.9 million ounce Banfora Gold Project in Burkina Faso projected average gold production for the first 5 years at 151,000 ounces of gold p.a. at 2.38g/t gold, based on a $1,300 an ounce gold price.

Cash C1 operating costs were estimated at $744 an ounce.

As part of the cost paring, Gryphon will delay the order for the SAG mill, a long lead item, with its manufacturer which will save $8 Million in out lay costs.

The delivery time is expected to be less than 52 weeks from recommencement of manufacture. The date of first gold pour relates directly to re-commencement of SAG mill manufacture; hence first gold at the Banfora Gold Project will now be later than the previously anticipated Q4 2014.

Despite the fall in the gold price and capital market volatility, Gryphon said it is still pursuing a number of debt funding options, having received strong initial interest from a large number of major international banks and financial institutions.

With a market cap of around $64 million, the multi million ounce Banfora project is valued at just $10 million (based on cash position) by the market which is clearly out of kilter.