Gryphon’s primary asset is currently the mineral exploration rights to a 640 acre parcel of property in Arizona referred to as the L.G. Properties. This property has the potential for discovery of large volumes of brine containing economic concentrations of lithium.
Gryphon Resources intends to develop the LG Properties through cooperation with its partner base. The Company’s intent is to launch a major exploration and development program aimed at completing an economic pre-feasibility study on the L.G. Project to advance the site to the feasibility stage. The program will include surface sampling, reconnaissance and info drilling, metallurgical testing, and a completion of a pre-feasibility study.
Between 1980 and 1991, water samples were collected by the USGS from wells throughout much of Southern Arizona for studies primarily concerned with groundwater flow. Chemical analyses for many of the samples included lithium. Sample collection and analyses during this period appear to have been performed by the same individual or groups of individuals. For this reason, well-to-well comparisons using these data can be assumed to be reliable. Lithium values for samples collected from 165 wells during this period in northern Cochise County, beginning about 30 miles south of the L. G. Property, average 63 g/l Lithium. The standard deviation for these data is 73.95. Using a value of 2 X the standard deviation over the mean, the threshold value for anomalous lithium is 211 g/l. Nearly all-anomalous values within this data set are from wells within the San Simon Valley. That area is in a southeastern extension of the same basin in which the sediments underlying the L.G. property were deposited. The values increase northward in the valley to a high of 450 g/l near the Graham County line.
Lithium in water samples collected from relatively deep wells during the 1980 to 1991 period in the area surrounding the L.G. Property range from 1400 g/l to 3500 g/l (in a 1395 ft deep well about 2 miles southeast of the property). A value of 3000 g/l is reported from a 1100 ft deep well one mile northwest of the property.
The company´s intent is to invest significant dollars over the next year to complete an economic pre-feasibility study on the L.G. Project to advance the project to the feasibility stage. Phase I of the planned 2011 program will include surface sampling, reconnaissance drilling and metallurgical testing. Phase II will incorporate detailed drilling, a continuation of metallurgical test-work and a pre-feasibility study. Both the first and second phases are expected to be completed by Spring 2013.