Gryphon Gold Reports Progress on Borealis Mine Development 

 

VANCOUVER, BC - Gryphon Gold Corporation reported an update of onsite construction work for the Borealis Oxide Heap Leach Operation as of July 29, 2011. The project remains below budget. Gryphon anticipates first revenue from gold sales in October, 2011.

John Key, Chief Executive Officer of Gryphon, commented "Construction progress remains below budget. We set a very aggressive schedule that goes from groundbreaking to production in four months and we are on line to accomplish this. Our prime contractors have remained on schedule and both have been able to trim expenses from their original quotes. The fabrication contactors have fallen a bit behind schedule but we anticipate no deviation from the original plan of shipping loaded carbon into this strong gold market on schedule."

As of July 18, 2011 the main water head tank was put into operation and is 100%.

As of July 29, 2011:the electrical on site work is complete with the exception of the crushing system grasshopper conveyors which is dependent on the     grasshopper conveyor deliveries scheduled for August 1, 2011; the pregnant and barren ponds are 100% complete and the initial water fill will commence once the Nevada Department of Environmental Protection (NDEP) inspects and approves the ponds. This will allow for installation of the process pumps which arrived during the week of July 18, 2011. Lining of the leach pad began on July 28, 2011. Crushing and placement of over liner material will begin during the week of August 1, 2011. The project is on target for delivery of loaded carbon in September and cash flow in October. With the completion of the $3M Private Placement, the order has been placed for the Absorption, Desorption, Recovery plant (the "ADR"). The ADR will be fabricated and put into production by Scotia of Salt Lake City, UT. Startup of the ADR is scheduled for January 2012. Funds have also been directed to NVEnergy for installation of the permanent line power for the project. Completion of the power line installation is scheduled for October 15, 2011.