Lima, Peru, March 12, 2013 (GLOBE NEWSWIRE) -- The Graystone Company (OTCQB: GYST) announced today that the Company's heavy equipment arrived yesterday at the mining site Gorila. The mining crew is currently setting up the equipment and expects to begin operating the equipment this week. Once the equipment is operational it is expected that the Company will be able to produce 50 - 75 grams of gold per 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.
As previously disclosed the Company expects to be able to mine 9-10 months per year and we are now in the rainy season. During the rainy season in Peru and virtually all roads around the mining sites get washed out and flood the mining sites.With the rainy reason is subsiding in Peru the Company can begin to mine more days per month to approximately 22 days per monthExpansion 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 estimates the excavator will cost approximately $150,000. The Company will build a 2nd Pod on Gorilla as soon as it obtains the excavator. The 2nd 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 estimates the second pod will cost between $200,000 and $300,000.