Gryphon Gold Enters Into Letter of Intent

VANCOUVER - Gryphon Gold Corporation reported that its wholly owned subsidiary, Nevada Eagle Resources, has entered into a Letter of Intent to complete an Exploration Agreement with an Option to Form a Joint Venture with Piedmont Mining Company Inc., whereby Piedmont may acquire up to a 70% interest in a gold property originally discovered by Duval International in 1985 at Morgan Pass, approximately 12 miles southwest of Wendover, Elko County, Nevada. The mineralized area was subsequently re-staked by Nevada Eagle Resources.
This property is currently located within a 'Wilderness Study Area', but the Bureau of Land Management has recommended that the area be released from wilderness study and placed into a 'Multiple Use' category because of its mineral potential, and proximity to an active U.S. Air Force training area and a large operating limestone quarry.
A formal agreement will be entered into upon release of the property into Multiple Use status. At that time, Piedmont will make a one time payment of $20,000 to Nevada Eagle and will then undertake a work commitment of $750,000 over a five year period to earn a 51% interest in the project, and can earn an additional 19% by completing a feasibility study. Under the Letter of Intent, Piedmont will make property payments and pay holding costs until Multiple Use status is granted and such costs will be credited against the work commitment.
This property consists of 22 claims covering an area with massive jasperoid outcroppings and gold assays of up to 4.3 ppm (0.13 ounces per ton) of gold in surface samples. Duval International drilled 24 shallow holes between 1985 and 1986 that contained mineralization over 20 feet to 330 foot intervals assaying more than 0.3 ppm (0.01 ounces per ton) of gold in 17 of the drill holes. These holes were located along a two-mile long zone trending northeast. They also reported a 5-foot intercept assaying 8.1 ppm (0.236 ounces per ton) of gold and a 45-foot intercept assaying 2.33 ppm (0.068 ounces per ton) of gold.(1)
In early May 2008, 14 rock chip samples were collected by Nevada Eagle Resources from various jasperoid outcrops on the claim block. All of them have returned anomalous gold assays, with over half of the assays showing from 0.4 ppm (0.01 ounces per ton) of gold up to 4.3 ppm (0.13 ounces per ton) of gold. This gold mineralization is hosted in brecciated jasperoids replacing shelf carbonates of the regionally equivalent Cambrian Notch Peak Formation and the Ordovician Pogonip Formation. The geology and past work on the property confirm Carlin-type mineralization and many characteristics of the mineralization at the Pequop - Long Canyon gold discoveries 28 miles to the northwest.
The company's address is Suite 810-1130 W. Pender St., Vancouver, BC V6E 4A4, 888.261.2229, fax: 604.608.3262.