Based on the results, the Company has estimated that the average level of gold on Gorilla is 0.76 grams per cubic meter. The results from the 23 days ranged from 0.33 grams per meter3 to 1.47 grams per meter3. Based on these initial ranges the Company is estimating that the amount of gold on Gorilla could be in excess of 300,000 ounces (or $500,000,000 at current gold prices); however, additional testing is necessary to determine the total size of the gold deposits and the amount of usable land. A copy of the geological report can be found here: Gorilla Report.
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 estimates that the two claims could have in excess of 500,000 ounces of gold (or $825,000,000 at current gold prices). The Company is expecting that only about 15% of the claims may be viable to mine. Based on 15% of the claims being viable, the Company estimates the revenue potential could be up to $125,000,000.
The Company expects to begin mapping the properties in the next few months. Once the mapping is completed, the Company will devise a plan for production and be able to determine the amount of the claims that are viable to mine. The mapping will also determine if the Company's initial testing was conducted in an area that has a larger concentration of gold than the rest of the property.
The Company acquired 100% of Gorilla for $55,000. The Company owns the claim through its wholly owned subsidiary Grupo Mineral Inca (a Peruvian Corporation). The Company acquired Gorilla prior to GMI being a 100% owned subsidiary and is currently finalizing the paperwork to have the claim transferred into GMI's name. The Company anticipates that it will need to raise up to $750,000 to acquire the equipment and build the necessary infrastructure to conduct mining operations on the claims. The Company expects that it could be mining on these claims for the next 20-25 years.
These results have not been independently verified and were conducted internally to assist in determining if the property contains gold values conducive to profitable extraction. When Company's management evaluates any projects its assumes the market price of gold is $850 per ounce.
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.
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.