Gryphon Gold reports $3.5 million in revenue for the second quarter of fiscal 2013

Thursday, Nov 15, 2012

Gryphon Gold Corporation (the "Company" or "Gryphon Gold") (TSX:GGN)(OTCQB:GYPH), a gold exploration, development and production company focused on its Borealis Oxide Heap Leach Project in Nevada (the "Borealis Property"), reported financial results for its second quarter of fiscal 2013, which ended September 30, 2012.

The Company achieved revenue of $3.5 million in the second quarter of fiscal 2013 on sales of 2,262 gold equivalent ounces. There was no revenue in the second quarter of fiscal 2012. Revenue in the first quarter of fiscal 2013 was $5.9 million on sales of 3,775 gold equivalent ounces.

Approximately 261,000 tons of ore was placed on the heap leach pad in the fiscal 2013 second quarter compared with 220,000 tons in the trailing first quarter. The Company produced 2,506 gold equivalent ounces in the quarter at a recovery rate of approximately 40% with an average cash cost per ounce of approximately $1,390. The average cash cost per ounce for the first six months of fiscal 2013 was approximately $1,140. The increase in cash cost per ounce was the primarily the result of lower production during the second quarter. This is a non-GAAP measurement, see page 4 for reconciliation. At September 30, 2012, the Company had $5.6 million of inventory.

James T. O'Neil Jr., CEO and Interim CFO of Gryphon Gold, commented, "We continue to make progress, though our production levels were below expectations as a result of several construction interruptions necessitated by our expansion efforts. The additional financing we received during the second quarter has provided us the financial strength to complete many necessary upgrades to accomplish our production capacity goals and will support the bonding requirement of our incremental fluid flow, as well as the purchase of a second set of carbon columns and pumps. Our goal remains to generate sufficient cash flow to maximize the potential of the Borealis Property and develop additional resources to extend the mine life of our project."

Source: Marketwire