Gryphon Gold — Investor Presentation (October 2010)
26 slides from Gryphon Gold's investor presentation, Oct 28, 2010
Slide 1: Gryphon Gold Corporation
GrYPHON’GOLD (Conporation] GGN:TSX | GYPH:OTC.BB October 21, 2010
Slide 2: Cautionary Note
; Gryphon Gold Corporation ed Cautionary Note 2 Road to Production
Slide 3: Going Forward... Development Plan for the Borealis Property
Gryphon Gold Corporation se Going Forward... ee Development Plan for the Borealis Property Road to Production Road to Production
Slide 4: Introduction
Gryphon Gold Corporation Introduction = ‘The “Road to Production” plan is an engineered approach to bring the Borealis Oxide Heap Leach Mine as published in the September 21, 2009 Independent Pre-Feasibility Study to production in a phased manner ‘While total capital required is expected to be in li
Slide 5: Location
Gryphon Gold Corporation ed Location sat 5 Road to Production
Slide 6: Overview
| Gryphon Gold Corporation Overview ahetes ‘The “Road to Production” is based on upon a quick start to this permitted (all major permits are in place) resource by utilizing already mined materials and generating cash flow in a 4 month period from ground-breaking. The Phase 1 concept is to recover ma
Slide 7: Borealis Reserves/Resources
Gryphon Gold Corporation Borealis Reserves/Resources GoldGrade Gold Oz. Tons (oz./ton) Contained Proven and Probable Gold Reserves” 16,650,000 0.093 377,356 Oxide/Mixed Resources” Inferred In-Situ 11,064,000 0.019 211,344 Inferred Heaps and Lean Ore 14,064,000 0.010 138,700 Sulphide Resources” Measu
Slide 8: Permitting Status
Gryphon Gold Corporation ae te : mal Permitting Status All Major Operating Permits are in Place * Borealis Project’s Modified Plan of Operations - U.S.F.S. #02-04-08 Approved « N.D.E.P. Water Pollution Control Permit - Approved + N.D.E-P. Air Quality Permit - Approved + N.D.O.W. Artificial Pond Perm
Slide 9: Initial Gold To Market
Gryphon Gold Corporation ed Initial Gold To Market — Proposed 1* and 2"¢ Phase of Start-up * 3-4 Months from Breaking Ground to Gold Production * Low Capital Cost” * Positive Cash Flow” — Is expected to Finance Full Production
Slide 10: Oxides = Opportunity
Gryphon Gold Corporation at Oxides = Opportunity sist Proven and Probable Reserve = 377,356 0z. Au Inferred Resource = 350,044 oz. Au Full Oxide Heap Leach Production of Project Reserves is expected to generate Positive Operating Revenue” The proposed oxide heap leach operation is expected to provid
Slide 11: 23.5 Square Miles of Potential Gold Discoveries
Gryphon Gold Corporation ee 23.5 Square Miles of Potential “~~ Gold Discoveries Opportunity to... * Explore High Sulphidation Host Rock * Expand Oxide Proven and Probable Gold Ounces * Expand Graben Sulphide Gold Resource * Identify new, potentially large, deposits in the Western Pediments ll Road t
Slide 12: Current Gold Mineralization
Gryphon Gold Corporation cl Current Gold Mineralization Proven and Probable Gold Reserves” 877,356 Oxide/Mixed/Sulphide Measured Resources” 276,700 Oxide/Mixed/Sulphide Indicated Resources” 807,500 Total 1,461,556 (2) Oxide/Mixed/Sulphide Inferred Resources 1,065,844 0) Recast sated sss pepe ccs web
Slide 13: Exploration Potential
Gryphon Gold Corporation cd Exploration Potential i * 23.5 Square miles of High Sulphidation System * One of the best exploration targets in Nevada * Confirmed by — Past Successful Exploration Drilling — Geophysics — Successful Mining History — The Historically Prolific Walker Lane Gold Belt Past Su
Slide 14: Future Oxide Gold Targets
Gryphon Gold Corporation ae Future Oxide Gold Targets ~~ — Targets identified by nearby drill intercepts, structural controls, geophysical anomalies, and favorable geology * Permitted Project Area — 12 Targets * East of Permitted Project Area — 8 Targets (Not permitted) * West of Permitted Project A
Slide 15: Future Borealis Trend Sulphide Gold Targets
Gryphon Gold Corporation se Future Borealis Trend Sulphide Gold Targets — Graben area activities to increase sulphide resources — Infill drilling — Structural extension drilling outside the identified deposit — Four other Target Areas to extend sulphide resources — Drilling below existing pit floors
Slide 16: Future Western Pediments Gold Targets
Gryphon Gold Corporation cd Future Western Pediments Gold Targets * Lucky Boy Target — Positive structural and geophysical signatures — Drillholes in area show strong sulphide silica alteration * Sunset Wash Target — Similar in size, structure, and signature to Lucky Boy (Although targets have limit
Slide 17: Phase 1
17 Gryphon Gold Corporation cd Phase 1 — * Construct Leach Pad * Mine, agglomerate, and place Freedom Flats Re-Leach (1.03 M tons @ 0.026" oz. /ton Au) ¢ Process pregnant gold solution through Carbon Columns * Recovery of gold from heap to carbon = 40%") * Toll recovery of gold and silver to bullion
Slide 18: Freedom Flats Basis of economic calculations
Gryphon Gold Corporation Freedom Flats [Historical Leach Pad Shown] soon Basis of economic calculations + Operating cost/ton ore - $4.00/ton" + Production rate - 6,000 pa + Gold content - 0.026 o2/t + Tons available - 1.03 Mt + Approximate Recovery - 40% + Processing Days - ~172 days * Royalty - 1%/
Slide 19: Phase 2
19 Gryphon Gold Corporation cd Phase 2 = ¢ Expand Leach pad * Mine East Ridge Pit (North Block Model) (2.192 M tons @ 0.018") 0z./ton Au) * Process pregnant gold solution through Carbon Columns * Recovery of gold from heap to carbon = 75%" * Toll recovery of gold and silver to bullion Road to Produc
Slide 20: North Block Model Basis of economic calculations
EE EE Ee LY North Block Model [East Ridge Pit Shown] Basis of economic calculations + Operating cost/ton ore ~ $7.50/ton + Production rate - 6,000 pd + Gold content - 0.018 o2./t + Tons available - 2.192Mt + Approximate Recovery ~ 75% + Processing Days - ~366 days + Royalty - 19/$100 Price of Gold N
Slide 21: Phase 1 and 2 Revenue Estimates
pW h-hh se = re ee Phase 1 and 2 Tons available ~ 3.229 Mt, Processing Days - ~538 days, Gold ounces recovered - ~29,592 $4.00/ton operating cost!) Freedom Flats Re-Leach Price of Gold ($/oz.)(2) $1000 $1200 $1400 Approximate Revenue (millions) $5.53 $7.50/ton operating cost Price of Gold ($/oz.)!*)
Slide 22: Phase 1 Capital Requirements
Gryphon Gold Corporation se Phase 1 Capital Requirements ~~ * March 2011 Capital Equipment and Leach Pad Projected Costs" $2,059,052 Working Capital” $3,410,689 Bonding” $1,400,000 Contingency $1,130,259 Total® $8,000,000 2: Road to Production
Slide 23: Phase 2 Leach Pad Expansion and East Ridge Development
Gryphon Gold Corporation ae Phase 2 Leach Pad Expansion ° and East Ridge Development Capital Requirements * September 2011 Capital” $1,500,000 Mobilization” $500,000 Bonding” $1,100,000 Total® $3,100,000 23 Road to Production
Slide 24: Full Production Level Capital Requirements
Gryphon Gold Corporation cd Full Production Level” Capital Requirements * October 2011 - June 2012 ADR® $2,200,000 Facilities” $5,400,000 Freight & Sales Tax” $700,000 EPCM, Permitting, & Bonding” $700,000 Total $9,000,000 (Q) al production sfes ome pln set ut in Soeur 21,2009 Independent Pe Feast S
Slide 25: Gold Production Plan
Gryphon Gold Corporation el Gold Production Plan ns Recoverable” Gold Gold Ounces Ounces Placed Recovered” Year 1 18,172 13,818 Year 2 39,973 35,441 Year 3 52,738 46,635 Year 4 57,043 56,080 Year 5 48,954 50,320 Year 6 34,560 36,677 Year 7 2,480 7,949 Total 946,990 246,990 Gy eden ncn adi asec Giuai
Slide 26: Estimated Timeline
Gryphon Gold Corporation ad Estimated Timeline * December 2010 - Metallurgical Testing and Grade Confirmation * March 2011 - Initial Pad/Service/Support Construction * April 2011 - Initial Pad Completion Process Releach Ore * May 2011 - Process Fluid Return + July 2011 - Toll Carbon Stripping for Go