PRODUCTION UPDATE

On June 6, 2011 Gryphon Gold officially began construction of the Borealis Oxide Heap Leach Mine.

On September 23, 2011 we began the heap leaching process by dripping cyanide solution onto the first constructed heap. This was a significant event to go from ground breaking to heap leaching in 110 days. On Sunday, September 24 we received our first return fluid from the heap leach pad. As time progresses the flow will increase and the metal concentration will increase.

The Borealis Oxide Heap Leach Operation began gold production in March 2012 with the pouring of two doré bars from loaded carbon. During fiscal 2012, the Company sold 32 tons of loaded carbon containing approximately 1,580 gold ounces.  In the first quarter of fiscal 2013, 3,280 gold equivalent ounces were sold from the ADR plant.

Please return to our web site often and watch as the construction pictures are updated and as we continue to report on our construction advances.


This picture is of the Heap leach pad and crusher in May 2012. There were 529,726 tons placed on the pad in fiscal 2012 that contained 6,409 recoverable ounces.


Here is the smelter currently used to pour gold bars. 1,464 equivalent gold ounces were shipped in May 2012 and a total of 2,764 ounces shipped in first two months of fiscal 2013.


The ADR facility was completed in May 2012, with capacity of 4 tons of carbon stripping per day. Gold is poured and shipped at the ADR facility once a week


This photo shows the completed section of the pad that is under leach. Behind this pad is a second heap being built and prepared for leaching.


This is a photo of the heap leach lines dripping the cyanide solution onto the gold and silver bearing ore. For fluid to return at the same rate that it goes onto the heap, the heap must become saturated which will require several days.


The fluid drains from the bottom of the heap and flows through a pipe to the pregnant pond. The fluid flowing from the pipe is pregnant solution containing gold and silver from the first heap. Over a period of several days the flow will increase to the same level as fluid being placed onto the heap.

 


In mid-August we began crushing and screening and placing the over liner for the leach pad. This over liner is screened to exacting measures to make sure that the leach piles will drain properly.


The completed ponds are being filled with water to test the leak detection system.


The $3M Private Placement has allowed for the early construction of the ADR. The equipment is being manufactured in Salt Lake City, UT while work progresses on site. This picture shows the pouring of the building footings and the initial floors that will be poured.


This overview of the leach pad shows the Phase 1A pad near completion. In the foreground the over liner is being placed. At the midpoint, the drain piping is being installed. At the far end the final clay layer is complete and the final liner is being installed.


This July 28, 2011 photo shows that the Barren and Pregnant Ponds are both 100% complete. The lined area in the lower right portion of the photo is the footing area of the ADR which has been ordered.


These culverts have been installed under the access road from the main gate to the heap leach pad and mining area. The culverts will hold the fluid process lines between the leach pad and the processing ponds. Photo taken on July 28, 2011.


This July 28, 2011 photo taken from atop the Pyramid pad shows the progress in placing the clay lining on the heap leach pad. The HDPE liner will go over the clay and installation will be during the week of August 1, 2011.


Welding, internal painting and inflow and discharge piping was complete on July 14, 2011. Final hook-up of the water source line and filing of the tank was accomplished on July 16, 2011. Final exterior tank painting will occur after commencement of production.

Lining of the Barren Pond began on Saturday morning July 16, 2011. This is a picture of the initial piece of liner to go into the Barren Pond.
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