Gryphon enters lease agreement with Pruett-Ballarat

Gryphon Gold Corporation, a Nevada focused gold exploration company, says that its totally owned subsidiary, Nevada Eagle Resources, LLC (NER), has entered into a Lease Agreement with Pruett-Ballarat Inc., whereby Pruett-Ballarat will lease the Argus property located in Inyo County, California.

The proposed agreement will provide a sliding scale net smelter return royalty to NER of a minimum rate of 3%, if gold is less than $700 per ounce, to a maximum rate of 6%, if gold is greater than $900 per ounce for gold produced from the property.

Lease payments totalling $24,000 annually are required until the property is placed into production.

The Argus property is located in the Argus Mountain Range of Inyo County, California, 12 miles west of the Briggs project operated by Atna Resources.

Since 1981 the property has been explored and drilled by Queenstake Resources, Tenneco Minerals and Anaconda Minerals.

Gryphon’s principal gold resource, the 1.4 million (measured and indicated) and 1.1 million (inferred) ounce 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 mineralised systems in Nevada.