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Lima, Peru, Feb. 27, 2013 (GLOBE NEWSWIRE) -- The
Graystone Company (OTCQB: GYST) announced today that the Company's Peruvian mining operations has mined approximately 1,000 grams of gold. The Company expects to begin increasing its daily production to approximately 35 - 50 grams a day.
The Company had previously been limited in the amount of gold it could produce until it filed its environmental impact study with the Ministry of Mines in Peru. The Company filed the environmental impact study on February 5, 2013 and can now begin to fully utilize the heavy machinery in Peru.
During the rainy season in Peru virtually all roads around the mining sites get washed out and flood the mining sites. As previously disclosed the Company expects to be able to mine 9-10 months per year and we are now in the rainy season. With the rainy reason subsiding in Peru the Company can begin to mine more days per month to approximately 15-20 days per month, depending on the weather.
The Company has been operating in Phase 1 of its business plan and is now entering into Phase 2; which includes, the mining permits and the acquisition of heavy equipment and transitioning from bulk sampling to limited full production.
Expansion of Operations on Gorilla
The Company is in the process of acquiring an excavator and dump truck 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 and dump truck will increase gold production to approximately 100 grams a day. The Company estimates the excavator and dump truck will cost approximately $350,000. The Company is currently seeking the financing necessary to acquire these items. This expansion is Phase 3 of the Company's business plan.
The Company will build a 2nd Pod on Gorilla as soon as it obtains the excavator and dump truck. The 2nd Pod is expected to increase gold production to a total of approximately 150 - 200 grams per day or approximately $1.7 million in yearly revenues (subtracting purity levels and refining fees). The Company estimates the second pod will cost between $300,000 and $500,000. This expansion is Phase 4 of the Company's business plan.