((RAIN)) Rainmakers-Island

[valdai]

GYPH - NI43-101 (click for DD)
GYPH – BREAKS GROUND IN MARCH 2011
POSITIVE CASH FLOW STARTS IN JULY 2011
http://www.gryphongold.com/main/

News Very Soon!
http://finance.yahoo.com/news/Gryphon-Gold-Advances-iw-4000123535.html?x=0&.v=1

CURRENT PPS: ~.20; Market Cap: ~18 Mil.
O/S: 89, 710, 132 M
A/S: 250M
Confirmed with Investor Relations on 12/20/2010

"NI 43-101 Pre Feasibility Study of the Mineral Resources of the Borealis Gold Project located in Mineral County, Nevada, U.S.A."

ALL REQUIRED PERMITS ARE IN PLACE

BOREALIS PROJECT – LOCATED IN WESTERN NEVADA (MINING FRIENDLY)

8K Filed September 22, 2009
NI 43-101 Pre Feasibility Study:
http://www.otcmarkets.com/edgar/GetFilingPdf?FilingID=6808877
(will take a bit to download – 288 pgs) (Five “Qualified Person” Seals)

Per the 8K (Actual Gold and Silver Recovery):
The Borealis Mine will produce 247,000 ounces of gold and 741,000 ounces of silver over five primary production years followed by one year of
additional leaching

Gold Production Plan - Gryphon estimates in its slide presentation dated 10-21-10 that it will recover 13,818 ounces in year 1, 35,441 ounces in year 2, 46,435 ounces in year 3, and 56,080 ounces in year 4. At gold prices of $1,300 an ounce, the Company would generate $17.9 million in revenue in year 1, $46 million in year 2, $60.3 million in year 3 and $72.9 million in year 4. These estimates do not include silver production which will add to revenues

23H.2 Production Schedule and Assumptions
The mine as currently defined has a 5 year operating life. Construction activities will take up to six months. First gold production will occur five
months after ground breaking.
During the first twelve full months of operation, gold production totals 45,000 ounces and silver production totals 135,000 ounces.
The Borealis Project achieves a maximum annual production rate of 65,000 ounces of gold and recovers 247,000 ounces of gold over a five year
period followed by a residual leaching year. Silver production is estimated to be three times the rate of gold production

OPEN PIT HEAP LEACHING MINING OPERATION
COSTS ARE SIGNIFICANTLY LOWER THAN UNDERGROUND MINING

CASH OPERATING COSTS: $476 P/OZ.
TOTAL PRODUCTION COSTS: $661 P/OZ.

PG 248:
Total Production Costs: 661 p/oz
Ounces produced – gold 246,920 life of mine
NPV at 5.00% $12,536,239 Ounces produced – silver 740,760 life of mine
NPV at 10.00% $8,249,330 Total equivalent gold 259,266 life of mine
NPV at 15.00% $5,018,901
Cost per ounce of gold
IRR at (US$/ oz Au) 800 27% Cost of sales 469
(US$/oz Ag) 12.00 Project G&A 41
Refining charges 5
Project Payback (years) 2.25 Silver credits (40)
Maximum financing
requirement
(22,597,814) Cash operating costs 476
(occurs approx month three of
year of start up)
Owners royalty 41
Nevada royalty 10
Total cash costs 527
Depreciation 45
Depletion/amortization 50
Reclamation/closure 40
Total Production costs 661



23H.1 Introduction
The capital and operating costs developed for the Borealis Project were combined with the project development plan and production schedule to
produce a cash flow model to evaluate the relative economics of the project. All capital and operating costs, for the purposes of this model, are in 2Q09
US dollars and have not been escalated. No Canadian overhead costs have been allocated to the Project and therefore the currency exchange rate is not
relevant.
The projected project return and sensitivity is shown at the end of this section (See Table 23H.1 and Figure 23H.1).
The projected statements of cash flow, projected balance sheets and projected income statements are shown in Figure 23G2.1 through Figure 23G2.3.
23H.2 Production Schedule and Assumptions
The mine as currently defined has a 5 year operating life. Construction activities will take up to six months. First gold production will occur five
months after ground breaking.
During the first twelve full months of operation, gold production totals 45,000 ounces and silver production totals 135,000 ounces.
The Borealis Project achieves a maximum annual production rate of 65,000 ounces of gold and recovers 247,000 ounces of gold over a five year
period followed by a residual leaching year. Silver production is estimated to be three times the rate of gold production.
23H.3 Sales and Revenue
The revenue from the Borealis Mine is generated through the sale of doré bars to Johnson Matthey in Salt Lake City Utah. Total transportation and
refining charges equal $5 per ounce of gold.
23H.4 Cash Flow Projections
The unlevered cash flow model developed for the project is included in Table 23G2.1. The model includes capital, revenue and operating costs for the
entire year life of mine. Capital costs include mine construction costs, power costs, pad expansion costs, bonding costs and working capital. Royalties
and taxes have been included in the model. Construction cash flow begins one month after the formal approval of the project. Final reclamation and
closure costs are completed in year 7 and bonding funds are released in year 8.
23H.4.1 Capital Costs
The capital cost of the Borealis Project is discussed in detail in Section 23G1 of this document. A summary of the initial and total capital costs for the
mine, process facilities and infrastructure are given in Table 23G1.1.



DRILL HOLES: 5,508; Blast Holes: 29, 834
Pg 113: There are currently 5,508 exploration and development drill holes in the four resource model areas, of which 1,643 intersect zones of mineralization
that are included in this resource estimate. In addition to these exploration holes, there are 29,834 blast holes now used in the resource estimate.
Average non-composited grades inside the mineralized zones range from 0.009 opt Au to 0.084 opt Au. Variability of assays is moderate to high, with
coefficients of variation ranging from 1.02 to 3.33 within zones. The location of drill hole collars is shown on Figures 17.3, 17.4, 17.5, and 17.6 for the
South, North, East, and West Area Models, respectively.


All Major Operating Permits are in Place - The Borealis Project's Modified Plan of Operations (U.S.F.S) #02-04-08 is approved, the N.D.E.P. Water Pollution Control Permit is approved, the N.D.E.P. Air Quality Permits is approved, the N.D.O.W. Artificial Pond Permit is approved, the Nevada State Water Rights is approved and developed, and the M.S.H.A. Safety Training Plan is approved. These represent all major operating permits needed and should significantly shorten the time required to go into production.
Proven and Probable Gold Reserves total 377,356 ounces - Gryphon will focus initially on proven and probable reserves identified in its September 21, 2009 Independent Pre-Feasibility Study prepared in accordance with NI 43-101 of the Canadian Securities Administrators.

The Central Zone of the Borealis Property is accredited with 1.4 million ounces of measured and indicated gold resources. There are another 1.1 million ounces of inferred gold bringing the total of measured, indicated and inferred gold resources to over 2.5 million ounces. Beyond this central zone, Gryphon Gold has identified 12 more targets on the huge property that have geophysical anomalies and favorable geology.
.
Management Team - Gryphon is led by CEO John Key who possesses 32 years of extensive mining experience, considered one of the top engineers in the U.S. for placing mines into production. Steve Craig, VP of Exploration, has 25 years of mining experience focused in Nevada and is credited with discovery of Midway and Gemfield.

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Gryphon Gold is a Nevada-focused gold exploration and development company. Its principal gold resource, the 1.4 million ounce (measured and indicated) and 1.1 million ounce (inferred) Borealis deposit, is located in the Walker Lane gold belt of western Nevada. The Borealis gold system is one of the largest known volcanic-hosted high sulphidation gold bearing mineralized systems in Nevada.
The principal asset of Gryphon Gold Corporation is the Borealis Property, 27.5 square miles located in the Walker Lane gold belt of western Nevada. The one square mile Central Borealis zone is accredited with 1.4 million ounces of measured and indicated gold resources and 1.1 million ounces of inferred gold resources. Previous operators have mined and heap leached over 500,000 ounces of gold from this zone during their collective 10-year tenure. There are at least five other highly prospective zones that are currently being explored that have the potential to host significant gold resources.

_______________________

EXPLORATION MAPS
http://www.gryphongold.com/main/borealisexploration

September 2010, Investor Presentation
http://www.gryphongold.com/main/presentation

October 21, 2010: ROAD TO PRODUCTION
http://www.gryphongold.com/main/files/files/201010_R2P.pdf

December 14, 2010 CEO Interview
http://www.smartstox.com/interviews/ggn

Gryphon Gold The Corporation was formed under the laws of the State of Nevada on April 24, 2003.
Trading Symbol GGN: TSX, GYPH: OTC.BB
CUSIP Number 40052G107
Opening Trade Day December 22, 2005
Escrowed Shares none
Shares Outstanding 89,710,132
Warrants Outstanding 7,171,392
Options Outstanding 5,282,500
Transfer Agent Computershare Investor Services LLC
350 Indiana Street, Suite 800, Golden, Colorado, USA 80401
1 [phone]
Company Contact Lisanna Lewis
Head Office 611 N Nevada Street, Carson City, Nevada, 89703
[phone]
Investor Relations & Administration Office 711-675 W. Hastings St., Vancouver, BC, Canada V6B 1N2 [phone]
Investor Relations 1-888-261-2229
Company Email [e-mail]

Board of Directors John Key
Donald Gentry
Terence Cryan
Marvin Kaiser
Management Team John Key, Chief Executive Officer
Lisanna Lewis, Vice President, Treasurer, Secretary
Steven Craig, Vice President Exploration