drilling results coming up

From the Sep Qtly:

During the period Gryphon Minerals was pleased to announce reaching over 1 million ounces of gold in the latest resource estimation at the Company¡¯s flagship Banfora Gold Project in Burkina Faso ©\ West Africa.

The Company views this resource as an interim estimation with significant potential to define further shallow ounces
from the on©\going drilling programmes. The Company is anticipating a new resource estimate in the first half of 2010 at the Banfora Gold Project.

The Company is undertaking approximately 20,000m RC/DD over the coming months which will continue to target shallow high grade gold mineralisation (¡Ö100 meters vertical depth) outside of the current defined resource estimate. Drill results will be made available at the earliest opportunity.

To date the total resource estimate is located on only two target areas, the only areas to date to have received any RC/DD drilling. The Company intends to test a further five high priority target areas within a 15 kilometre radius of the Nogbele deposit with RC/DD drilling in the September quarter.

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GRY is currently trading at $77 an ounce to EV which is about double what a West African explorer should be at this stage of it's development.

What that tells me is that the market is factoring in lots more ounces to be discovered, at least double, with potential for much more.

The company certainly thinks so and keeps talking about a 'multi-million ounce deposit similar to the others in the region'. That means up to 5m ounces.

If their exploration success continues along as it has beem, this seems highly probable and the EV will naturally appreciate.