The Banfora BFS considers initial proven and probable ore reserves of 1.05 million oz contained in 16.7 million mt grading 1.95 g/mt at variable cut-offs of 0.5 and 0.6 g/mt. The project has an esti-mated global resource of 4.89 million oz in 112 million mt grading 1.4 g/mt at a cut-off of 0.5 g/mt. The reserves and resources are 90% above 150 m in depth and remain open at depth and along strike, with a strong likelihood of further increas-es through ongoing drilling.

Banfora production is estimated at 151,000 oz/y of gold at production costs of $734/oz during its first five years of opera-tion, processing ore grading 2.38 g/mt. Capital costs to develop the project are estimated at $208 million, plus contingen-cies. Base case economics are based on a $1,300/oz gold price.

Gryphon has initiated the Banfora pro-ject permitting process, with expectations that it will be completed by the third quar-ter of 2013. The construction period is planned at 15 months, with first gold pro-duction anticipated during the fourth quar-ter of 2014.