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Gryphon Gold expects first cash flow in October

Published: 19:29 02 Aug 2011 BST

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Gryphon Gold Corp (TSE:GGN) provided an update on the construction of the Borealis Oxide Heap Leach Operation on Tuesday, expecting the first cash flows from the project in October 2011.


As of July 29, the project remains below budget and mainly on schedule.


With the exception of the crushing system grasshopper conveyors, which are dependent on deliveries that are scheduled for the beginning of August, all electrical work on site is completed.


The pregnant and barren ponds are also finished, and the initial water fill will commence after the Nevada Department of Environmental Protection inspects and approves the ponds.


The leach pad was lined beginning on July 28, with crushing and placement of over liner materials to begin this week.

The main water head tank, which was put into operation mid-July, is currently fully functional.


"We set a very aggressive schedule that goes from groundbreaking to production in four months and we are on line to accomplish this," said CEO John Key.


"Our prime contractors have remained on schedule and both have been able to trim expenses from their original quotes."


The project is on target to receive the first delivery of loaded carbon in September, Gryphon said.


The Borealis project is located in the Walker Lane mineral belt in south-western Nevada. The Borealis property has proven and probable resources consisting of 377,356 ounces of the yellow metal.


In other news, the Nevada-focused gold exploration company said that, with the late July completion of its $3 million private placement, it has placed the order for the Absorption, Desorption, Recovery plant (ADR), which will be fabricated and put into production by metal recovery system operator Scotia Corp.
Start up of the ADR is expected for January 2012.


The placement will also fund the induction of the permanent power line, which is scheduled for installation on October 15, 2011, by NV Energy Inc.

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