Peru, Lima, May 6, 2013 (GLOBE NEWSWIRE) -- The Graystone Company (OTCQB: GYST) announced today the Company's mining operations generated approximately 120-150 grams of gold in April. The Company expects to double the amount of its gold production in Peru during the month of May.
The Company expects to recover approximately 850 - 900 ounces of gold in the next 12 months. The Company experienced delays in getting the equipment through customs in Peru and delivered to its mining site in Peru. The Company's equipment was set up in March and will be in full use in May.
Company's Mining OperationsThe Company's mining operations in Peru consist of alluvial (or placer) mining. Alluvial mining refers to mining precious metal deposits (particularly gold and gemstones) found in alluvial deposits - which are deposits of sand and gravel in modern or ancient stream beds, or occasionally glacial deposits. The gold deposits are moved by stream flow from an original source such as a vein. Since heavy metals like gold are considerably more dense than sand, they tend to accumulate at the base of placer deposits. The Company uses the term "System" to refer to it mining production operations. A "System" consists of the following: · Mining production foreman · Crew of 12 for mining (2 shifts of 8 hours each.) · Cook · Water Pumps to move water to where mining operations are occurring · Rock pumps to move the dirt, rocks and water · Sluice box · Shaker Tables The Company expects the monthly expenses (monthly burn rate) associated to each system to be approximately $20,000 - $25,000. The Company expects the initial capital expenditures for each system to be approximately $250,000. These expenses include the costs of the employees, food, gasoline, diesel, oil, grease, soda ash, travel, security, repairs to equipment, machine parts, and miscellaneous supplies. The Company expects its breakeven point to be approximately 20 grams of gold per day depending on the purity levels, refining fees and easement costs.