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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 2
nd Pod on Gorilla as soon as it obtains the excavator. The 2
nd 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.
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.