Lima, Peru, Jan. 22, 2013 (GLOBE NEWSWIRE) -- The Graystone Company (OTCQB: GYST) announced today that the Company's Peruvian wholly owned subsidiary, Grupo Mineral Inca S.A., has received a 2-year permit from the Peruvian Ministry of Energy and Mines to conduct full mining operations on its mining properties Gorilla and Graystone II.
Significance of the Mining Permit
Prior to receiving the mining permit, the Company was limited in the amount of gold that could be extracted. With the permit, the Company is no longer limited in the amount of gold that can be extracted and can fully deploy the heavy equipment that was purchased and which has cleared customs. The Company expects that the heavy equipment will allow the Company to extract 50 grams of gold per day.
The mining permit requires that the Company complete an environmental impact study on the properties prior to the expiration of the 2-year permit.
Expansion of Operations on Gorilla
The Company is in the process of acquiring an excavator to be used on Gorilla; now, that the Company's operations are no longer under the limited production requirements. The company expects that the excavator will increase gold production to approximately 100 grams a day.
The Company will build a 2nd Pod on Gorilla as soon as it obtains the excavator. The 2nd Pod is expected to increase gold production to a total of approximately 150 grams per day or approximately $1.7 million in yearly revenues (subtracting purity levels and refining fees).
The Company has been engaged in limited mining operations and has generated in excess of 500 grams of gold.
Suriname Operations
The Company's officers are currently in Suriname and are expected to return to Lima, Peru this week. As such, the Company expects to provide an update regarding its Suriname operations next week.
Company's Peruvian Mining Properties
Company estimates that its three claims (Gorilla, Graystone 2 and Graystone 4) have in excess of 170,000 ounces of gold or $300,000,000 at current gold prices.
The Company extrapolated the results of its test mining production ("bulk sampling") and its recent mining properties to the three properties. Based on the results, the Company has estimated that the average level of gold is 0.76 grams per cubic meter. The results from the company's test mining production ranged from 0.33 grams per cubic meter to 1.47 grams per cubic meter.
The Company obtained its internal estimates using the following math:
Square Meters: 12,000,000 meters
Depth of Gold: 2 meters
Total size of properties: 26,880,000 cubic meters
Grams per cubic meter: 0.75 grams
Grams per ounce: 31.1
Total Possible Ounces: 1,152,412 ounces
Total Probable Ounces: 170,000 ounces
The Company estimates that 15% of the property's total size will be minable. The Company expects that it could be mining on Gorilla, Graystone 2 and Graystone 4 for the next 15-20 years. The Company is not including Graystone 3 in these figures because it is not in same immediate area. The company expects to provide testing results on Graystone 3 in the near future.
No proven (measured) or probable (indicated) reserves have been established with respect to the Gorilla project or any other project. Any references to estimated, potential and/or "inferred" reserves or resources, and any estimated values of such reserves, contained in the geological report, or set forth in any other communication (i) do not represent proven (measured) or probable (indicated) reserves within the meaning of Item 102 of Regulation S-K and the Commission's Securities Act Industry Guide 7, and (ii) should not be relied upon by any person in evaluating the Company's prospects at the Gorilla project.
About The Graystone Company. The Graystone Company, Inc. is a U.S.-based mining and exploration company focused on acquiring and developing gold and other mineral properties. The Company's strategy is to build value for shareholders by the identification, acquisition and exploration of early-stage properties that show significant potential for the discovery of gold. The Company sells gold and silver to retail buyers via www.graystonegold.com.
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