LIMA, Peru--(BUSINESS WIRE)--The Graystone Company (OTC Bulletin Board: GYST) announced today its project plan for its mining projects in Peru.
The Company recently announced that preliminary assay results demonstrated approximately 0.7 grams of gold per cubic meter with a high of 1.47 grams per cubic meter on the Company's Gorilla mining project. Additionally, the Company's geologist completed a contour map of the project. The contour map was produced by the geologist by probing 102 data points to determine the average depth of the test area, which was approximately 2.4 meters with a high of 5.1 meters. Between Gorilla and Graystone II, the Company has a total portfolio of 1,200 hectares (or 2,965.27 acres) or approximately 12,000,000 square meters (or 4.63 square miles) of mining claims in Peru.
The Company during its preliminary testing (bulk sampling) mined approximately 20 cubic meters per day. The Company expects once it has acquired the necessary heavy equipment it can mine at least 10 - 15 cubic meters per hour with the goal to increase production to 75 - 100 cubic meters per hour within 24-36 months.
"The Company's initial testing has been successful," said Paul Howarth, Managing Director of The Graystone Company. "Based off the results of our preliminary testing the Company is moving forward with our projects in Peru. In 2012, we expect to slowly expand our operations in Peru with the intent to be in full production in 2013. It is important that we build a solid foundation to support our future operations in Peru."
The Company's project plan consist of three phases:
Phase 1:
The Company's geologists will begin mapping the portfolio of properties that it currently owns.
The Company's project manager will begin the construction of the mining camp for operations. The camp will include living quarters for staff, dining area, food preparation and storage, and storage for supplies and spare parts.
The Company expects Phase 1 to begin in late February 2012 and take approximately 7 - 12 months to complete.
Phase 2:
Construction or acquisition of equipment capable of processing at least 25 cubic meters per hour.
Begin environmental impact study for Gorilla and Graystone II.
The Company expects Phase 2 to begin in July 2012 and take approximately 4 - 6 months to complete.
Phase 3:
Begin limited production on its mining properties.
The Company expects Phase 3 to begin in December 2012. The Company anticipates that the total cost of the three phases to be between $750,000 and $1,250,000.
No proven (measured) or probable (indicated) reserves have been established with respect to the Gorilla 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 or any other of its projects.
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.
Notice Regarding Forward-Looking Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.