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Gryphon Minerals hits 8m at 38.75g/t gold from 68 metres in West Africa

Gryphon Minerals (ASX:GRY) has intersected further significant near surface high grade gold from drilling at the Nogbele gold deposit at its 100% owned Banfora Gold Project in Burkina Faso, West Africa.

Ongoing step out, infill and down dip reverse circulation (RC) and diamond drilling (DD) drilling at the deposit has revealed shallow (<100 metres vertical depth) mineralisation which remains open along strike and down dip.

Highlights include:

- 8 metres at 38.75 grams per tonne (g/t) gold from 68 metres;
- 5 metres at 17.41g/t gold from 23 metres;
- 3 metres at 14.12g/t gold from 79 metres; and
- 2 metres at 19.09g/t gold from 71 metres.

The result 8 metres at 38.75g/t gold from 68 metres is one of the highest gram intercepts at the Banfora Gold Project yet. Several new high grade zones have been identified and will now be targeted over the coming months.

Steve Parsons, Gryphon Minerals managing director, said “these are excellent results that demonstrate near surface, high grade mineralization continues north at the Nogbele deposit.

“With resource drilling continuing at the Nogbele deposit as well as the satellite Fourkoura and Samavogo deposits, plus multiple priority regional targets being followed up in an aggressive exploration program, we expect further and significant growth over the next 12 months.”

The company believes the drill results confirm the potential for the Banfora Gold Project to host world class gold mineralization similar to other major deposits in West Africa. The project abuts Randgold’s (NASDAQ: GOLD) Tongon permit to the south.

The company recently announced an Inferred JORC Resource at the Banfora Project of 29 million tonnes (Mt) at 2.1g/t for 2,000,000 ounces (oz) of gold of which the majority is shallow and above 100 metres depth.

The project is located in a major gold producing district, host to such world class gold deposits as Randgold’s Tongon (4.2Moz) Resolute’s (ASX: RSG) Syama (5 Million oz Au mined & 6.5 Million oz Au in resources) and Anglo/Randgold’s Morila (6.5Moz).

Regionally within the 1,200 square kilometres project area there remain numerous untested high priority targets which the company will be targeting during 2011/12.

Gryphon is undergoing an aggressive $30 million exploration program to establish a multi-million ounce gold district at the Banfora Gold Project.

A further 20 high priority regional targets will be tested with reconnaissance style RAB and auger drilling over the coming months.

The company expects completion of initial mining studies at the Banfora Gold Project by mining consultant Lycopdium in the coming weeks.

At Gryphon's Mauritania projects, initial first pass geological diamond drilling has been completed at the Tijirit Project and results are pending.

Comment

The result 8 metres at 38.75g/t gold from 68 metres is one of the highest gram intercepts to date at the Banfora Gold Project.  With an aggressive $30 million exploration program underway to establish a multi-million ounce gold district at the Banfora Gold Project, current valuation (less cash on hand of $55 million) could still be on the low side within 12-18 months - given Gryphon's outstanding exploration track record in West Africa.