Lima, Peru, Oct. 8, 2013 (GLOBE NEWSWIRE) -- The Graystone Company (OTCQB: GYSTD) announced today that the Company's mining operations in Peru have generated approximately 240-260 grams per month for the months of June, July, and August for approximately 750 grams. The Company has doubled its production since April 2013; when it produced approximately 130 grams. The Company has completed this phase of testing and has determined that it is economically feasible to acquire an excavator and additional heavy machinery for Peru. The excavator and additional heavy machinery will be used to remove the layers of clay located on the Company's mining properties which the Company expects will result in a significant increase in its mining production in Peru. The company is currently seeking to raise the capital necessary to purchase the excavator and additional heavy machinery.
Company's Mining Operations
The 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.)
- 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 20-25 grams of gold per day depending on the purity levels, refining fees and easement costs.
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.
Source: TheGraystone Company, Inc.