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Resource estimate at Banfora Gold Project increased to 4.9Moz Gold

The Banfora Gold Project is one of the largest undeveloped gold resources in Africa and one of the only large scale greenfields discoveries in the world.

The Mineral Resources and Ore Reserves are shallow with 90% above 150 metres vertical depth and they remain open at depth and along strike ready for further increases through Gryphon’s ongoing drilling programmes.

In conjunction with the announcement of the Bankable Feasibility Study at Banfora in January 2013, Gryphon has announced an increase in the global Mineral Resource estimate at Banfora to 4.9Moz of gold.

The Mineral Resource and Ore Reserve estimates were independently estimated and classified by CSA Global to a standard suitable for reporting in accordance with the 2004 Australasian Code for Reporting of Mineral Resources and Ore Reserves (2004 JORC Code). Statistical and geostatistical analysis was undertaken on the mineralised material prior to grade estimation of the resources (2004 JORC code & NI43-101) using Ordinary Kriging.

This has resulted in estimated Mineral Resources above a 0.5 g/t Au cut-off for the Project of 72.3 million tonnes at 1.5 g/t Au for 3.4 million ounces of gold of global Measured and Indicated Resources, and 39.3 million tonnes at 1.2 g/t Au for 1.5 million ounces of gold of global Inferred Resources (refer Appendix Two following).

Table 2 includes 49.2Mt @ 0.6g/t gold for 0.93Moz gold below the 0.9g/t lower cut from the Nogbele deposit that is currently the basis for the Heap Leach test work.

The maiden Ore Reserves for the Banfora Gold Project have been derived by Cube Consulting under the direction of Quinton de Klerk to a standard reportable in accordance with the “Australasian Code for Reporting of Exploration Results, Mineral Resources (JORC Code 2004 & NI43-101) and Ore Reserves” (JORC Code 2004) and are based on the Mineral Resource Models estimated by CSA Global in this announcement.

The Ore Reserve estimate is based on the Mineral Resources classified as “Measured” and “Indicated” after consideration of all mining, metallurgical, social, environmental and financial aspects of the operation.  The Proved Ore Reserve has been derived from the Measured Mineral Resource, and the Probable Ore Reserve has been derived from the Indicated Mineral Resource.

The cut-off grades used in the estimation of the Banfora Ore Reserves are the non-mining, break-even gold grade taking into account mining recovery and dilution, metallurgical recovery, site operating costs, royalties and revenues.  For reporting of Ore Reserves the calculated cut-off grades were rounded to the first decimal gram per tonne of gold. The cut-off grades vary depending on the material type and the pit location. Both are shown in the Ore Reserves table.

The grades and metal stated in the Ore Reserves Estimate include mining recovery and dilution estimates.  The Ore Reserve Estimate is reported within the open pit designs prepared as part of the BFS.

Contained within the pit designs on which the Ore Reserves are based, is a total of 102.7 Mt of waste material, resulting in an waste:ore strip ratio of 6.1:1.  Included in this waste tonnage is 0.4 Mt of material classified as an Inferred resource, above the reserve cut off grade.  The average grade of this Inferred material is 1.7 g/t.  No economic value has been assigned to this Inferred material in the estimation of these Ore Reserves.

Outside the currently defined and evaluated deposits, the Project area remains highly prospective for further discoveries.